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  • Chart of the Week: How to Simplify the Tax Code and Lower Taxes

    House Republicans return to Washington today to vote on a two-month payroll tax extension. If news reports are correct, the bill is likely to fail, leaving in doubt how lawmakers will resolve their differences before the year draws to a close.

    These year-end squabbles are now routine business in the nation’s capital. At issue in this case is the short-term extension of the payroll tax rate through February.

    “I believe that two months is just kicking the can down the road. The American people are tired of that. Frankly, I’m tired of it,” Speaker John Boehner (R-OH) said Sunday on NBC’s “Meet the Press.”

    There is a better way. Earlier this year, The Heritage Foundation outlined a comprehensive approach to tax reform that would provide the permanence and certainty in the tax system that American taxpayers want and the economy needs. Heritage’s plan, called Saving the American Dream, would replace income and payroll rates with a flat tax rate of 28 percent for everyone.

    Heritage’s J.D. Foster detailed the plan last week:

    The current tax system discourages saving. It discourages investment. It discourages entrepreneurship. It causes decision makers to misallocate the nation’s resources, limiting productivity gains, wage gains, and the nation’s overall level of international competitiveness. And, it is far, far too complicated. The New Flat Tax is the remedy. It replaces every major tax collected by the federal government. For non-seniors, it is as easy as one, two, three—one rate, two credits, three deductions. For seniors on Medicare, one of the two credits—for health insurance—is replaced by an extra deduction. The New Flat Tax is simple, revenue-neutral, and will allow America to achieve its full economic potential.

    This week’s chart reveals why it is so crucial for Congress to consider reform. Without major changes or significant spending cuts, tax rates are projected to skyrocket in the years and decades to come.

    Posted in Scribe [slideshow_deploy]

    5 Responses to Chart of the Week: How to Simplify the Tax Code and Lower Taxes

    1. Bobbie says:

      sick of democrats holding America back. democrats won't move too quick, they might lose their crooked balance or gain some dignified sense. Now they want to negotiate TIME!

      ignore the democrats and promote what needs to get done and why! democrats refuse what's necessary no matter the cost, democrats always have the tax payers to clean up the messes democrats hold no accountability of their own accountability. they're a disgrace to this nation. democrats are the party of excuses and talk a long talk "do nothings."

      Here's democrats "gee, if we let people have the money they earned for a whole year, there won't be any money to pay us (to further complicate all that is in respect, personal freedom.)"

    2. John Woodhead says:

      I sent the following to the White House today:

      "With all the talk lately of paying one's "fair share" of taxes, I'd like to know how, mathematically, I can determine my fair share.

      I think a reasonable way for me to understand it would be to send me a copy showing how the President determines his.

      Thank you."

      (I'm not holding my breath for a reply!)

    3. Charlie says:

      Many people are pushing the "Fair Tax" plan, I would like to see a comparison between the "New Flat Tax" and the Fair Tax plan.

    4. Larry Young says:

      I can't see why more Americans aren't on-board with this plan. "We the people" need to puch this plan all the way up the steep, bumping, difficult terrain… to the top of the (capital) HILL!!

    5. harold says:

      dependent upon the deductions I would be for the fair tax, but, question, how does this figure with the entitled class, right now those on welfare don't pay tax, will this change? how about a consumption tax where everyone pays….

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