Flat Tax is Gaining Steam Again

By Anonymous on October 21, 2011

FreedomWorks Chairman and former House Majority Leader Dick Armey led the fight for the flat tax on Capitol Hill in the 1990’s. FreedomWorks, previously known as Citizens for a Sound Economy (CSE), stood with Armey and his efforts to repeal today’s complicated income tax system. CSE even embarked on a nationwide Scrap the Code tour to generate support for overhauling the tax code. With the rise of the Tea Party movement, the flat tax has a greater chance of passing this time around. The flat tax is gaining steam again with at least one major presidential candidate and congressional leaders on the hill backing this more sensible policy.

The current tax code is far too complicated, long and punitive. The U.S. currently has six income tax brackets ranging from 10 to 35 percent. The more money that you earn, the higher percentage of taxes you are forced to pay Uncle Sam. According to the IRS, the average American taxpayer spends 26.5 hours preparing and sending in their taxes. The tax code is a 60,000-page catalog of favors for special interests. I may not agree with him on much else but former President Jimmy Carter said it best, “our income tax system is a disgrace to the human race.”

A flat tax would be a significant improvement from the status quo. It means that individuals would be taxed at one low rate. One of the most common proposals is a 17 percent flat tax with a $36,000 income tax exemption for a family of four. A flat tax would get rid of special interest preferences and tax loopholes that lobbyists have built into the tax code overtime. Individuals would be able to file their taxes in just five minutes on a form the size of a postcard. Small businesses could concentrate on expanding their business rather than jumping through hoops in the tax code. It’s much simpler and flatter system that will end double taxation on savings to help boost job growth.

A low flat tax is a step in the right direction and a huge upgrade from the current tax code. With a grassroots army and congressional representatives willing to lead the charge, it is politically feasible.  Please watch the video below of Dick Armey advocating for a flat tax back in 2007:

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JabberJaw's picture
Jim AberdeenIt's certain that we must do something and do it quickly.
30 weeks 3 days ago
waswier's picture
Walter SwierczynskiA flat tax would be better, but a Ron Paul "No Tax" is better yet.
30 weeks 3 days ago
LibertyRevolution's picture
Ron CJIf you think we have it hard back home, you should see how complex the IRS has made it for Americans overseas! Simply research FATCA and FBAR - These laws are making lives of Americans overseas a real nightmare. Want to start or invest in a business overseas? Multiply that complexity by 5. Just one of the forms that need to be filed PER investment / business: http://www.irs.gov/instructions/i5471/ch01.html There are many other filing requirements if you do decide to invest overseas, or decide to move overseas. We are the ONLY country in the world besides Libya that taxes its citizens living and residing overseas. Our tax code is a real joke - And honestly, I hope that we can do something about it soon before they make it even more difficult for us to operate!
30 weeks 3 days ago
RichardTaylorAPP's picture
Richard TaylorDo not fall for another "unenumerated flat percentage federal tax" such as the flat tax or Fairtax. Not only does it guarantee increase of taxation with an increase in private sector economy without oversight, consent or enumeration before being granted to them; Fairtax and national sales taxation invites the federal government into your state law to allow the "federal Government" to "define what is and what is not a business!!!" that means you invite them into your living room!!! A sales tax invites them into documenting your income from sales as well!!! You will then have a BUY, SELL and TRADE tax!!! i.e. a Jelousy tax. resulting in a Total Ignorance as to the real problem which is to "REDUCE FEDERAL SPENDING ans REGULATION"; Then you can remove the income tax and remove the need for other unconstitutional taxation. Ron Paul ts correct in removing the income tax and NOT to replace it with ANYTHING!!!. Com'on People THINK!!! The constitution was written correctly; it was based on what the federal government was allowed to collect taxes for and consensually granted; Not on what a person has or spends. See our special report #5 American Patriot Party .CC
30 weeks 1 day ago
tdupuy's picture
Trevor DupuyHow would government raise any revenue to operate?
30 weeks 1 day ago
RichardTaylorAPP's picture
Richard TaylorTrevor: The same way it did before the income tax in 1930's. First you need to understand the limits set down by the Founders; When people look at the federal government now, they think it for everything; it's not, and it was never meant to be. Here is a few brief quotes from the Virginia Ratifying convention 6-16-1788 (which defines the "general phrases" within the Constitution) It is one of our suggested reading documents on our web site: " George Nicholas 6-16-1788: > ...that this "GENERAL WELFARE" was united, "NOT" to "the general power of legislation", but to the >particular power > of laying and collecting taxes, IMPOSTS, and EXCISES, >>>FOR THE PURPOSE of paying the DEBTS and providing for the "COMMON DEFENCE", that is, that they could raise "AS MUCH" money as would pay the "DEBTS" and provide for the "COMMON DEFENCE", in "CONSEQUENCE of this power". The clause which was affectedly called the sweeping clause (Article VI) contained "NO new grant of power"." Only 2 things! Do you see anything about social security, welfare checks (a misuse of the word welfare and an expounding upon a "general phrase")??? Now let's look at police powers outside the 10 miles square of Washington DC and the VERY FEW crimes that the federal government can prosecute... Thomas Jefferson in the Kentucky Resolutions 1798 makes this abundantly clear: "#2. Resolved, That the Constitution of the United States, having delegated to Congress a power to: a.) punish treason, b.) counterfeiting the securities and current coin of the United States, c.) piracies, and felonies committed on the high seas, and d.) offenses against the law of nations, and >>>>>>>"NO OTHER" CRIMES, >>>>>>>"WHATSOEVER"; and it being true as a general principle, and one of the amendments to the Constitution having also declared, that "the powers not delegated to the United States by the Constitution, not prohibited by it to the States, are reserved to the States respectively, or to the people," therefore the act of Congress, passed on the 14th day of July, 1798, and intituled "An Act in addition to the act intituled An Act for the punishment of certain crimes against the United States," as also the act passed by them on the day of June, 1798, intituled "An Act to punish frauds committed on the bank of the United States," (and "ALL" their OTHER acts which >>>ASSUME to >>>create, >>>define, or >>>punish crimes, OTHER than those SO ENUMERATED in the Constitution,) are >>>"ALTOGETHER" >>>"VOID", and of >>>"NO FORCE"; and that the power to create, define, and punish such OTHER crimes is RESERVED, and, of right, appertains solely and exclusively to the respective States, >>>>>>>each within its OWN territory." FBI, CIA, DEA, ATF etc. are all undelegated federal powers within the states; and all "other" "crimes" which the federal government now prosecute outside these limited delegated powers are the true responsibility of the individual state's within their own territory. (the federal government can set a standard, but ultimately illegal aliens etc. are a states responsibility because the federal government was never granted the power to prosecute them - the states can also refuse it or anything- see James Madison below) Here again from the Virginia Ratifying Convention 6-16-1788: Mr. PENDLETON: "Mr. Chairman, this clause does "NOT" give Congress power to impede the operation of "ANY PART" of the Constitution, (N)or to make >>>"ANY" "REGULATION" that may affect the interests of the citizens of the Union >>>AT LARGE (APP...THINK ABOUT THAT!!!). But it gives them power over the "local" "police of THE >>>PLACE", so as to be secured from any interruption in their proceedings. Notwithstanding the violent attack upon it, I believe, sir, this is the "fair construction of the clause". It gives them power of exclusive legislation in any case within >>>>>>>THAT district. What is the meaning of this? What is it opposed to? Is it opposed to the general powers of the federal legislature, or to those of the state legislatures? I understand it as opposed to the legislative power of that state where it shall BE. What, then, is the power? It is, that Congress shall exclusively legislate there, in order to preserve {440} serve the "police" OF THE >>>>>>>"PLACE" and their OWN personal independence, that they may not be overawed or insulted, and of course to preserve them in opposition to any attempt by the state where it shall be this is the >>>>>>>"fair construction". Virginia Ratifying Convention 6-16-1788: JAMES MADISON: Mr. Chairman: "...I cannot comprehend that the power of legislating over a "SMALL district", which >>>"CANNOT EXCEED" >>>ten miles square, and may >>>"NOT be" more than "ONE" mile, will involve the dangers which he apprehends. If there be any knowledge in my mind of the nature of man, I should think it would be the last thing that would enter into the mind of any man to grant exclusive advantages, in a "VERY" CIRCUMSCRIBED district, to the prejudice of the community at large. ...... Let me remark, if not already remarked, that there must be a cession, by particular states, of the district to Congress, and that the states may settle the terms of the cession. The states may make what stipulation they please in it, and, if they apprehend >>>"ANY" danger, they >>>"MAY" >>>REFUSE it >>>ALTOGETHER." So if we only had to pay for the federal government collecting taxes for 2 things - Debts and defense; and 4 crimes.... as is the only authority that they have been given to collect for, clearly, we would have plenty with a simple import tax; Which by the way takes very little regulation to implement and secures peoples right to be secure in their person, papers and effects (as the government does not need to know anything about the person or the company while collecting an import tax on a product as it passes in front of him); As simple as that.
30 weeks 1 day ago
Ultraflyer's picture
DavidTotally agree Richard!! Why do people refuse to see this! Do they really think freedom embraces and encompasses government interference and control?!? It never ceases to amaze me how little people today can 'see', and what they really want for a 'free' life! People, don't go for an 'improvement', a flat or national sales tax, go for the constitutional stance!, NO unconstitutional taxes at all!! Is this why so many refuse to look at Ron Paul because they have not taken the time to see what true freedom is and have not studied the constitution? I truly see what our forefathers must have endured with the sheeple of their time, NOT unlike those of today!! History really does repeat itself!
4 weeks 1 day ago
Bob Madden's picture
Bob MaddenA flat tax would be an improvement, but a flat sales tax would be better. Then you could do away with filling out forms altogether, and the entire IRS could be replaced with a couple old PCs to count the money.
30 weeks 3 days ago
spharper's picture
Stephen HarperA flat income tax initially, with a transition to a national sales tax as IRS, EPA, DOE, FDA, FCC, OSHA, SEC and a myriad of other agency's are either eliminated or downsized along with repeal of Obamacare,Sarbanes Oxley,and Dodd Frank! Eliminate Corporate tax completely! Eliminate lifetime judicial appointments! Term limits for Congress as well as repeal of all their exemptions from legislation along with retirement benefits beyond Social Security for Congress! After that make sure to look carefully before crossing a street because USA is gonna be speeding back to it's rightful place!
30 weeks 3 days ago
MarkAveryUSA's picture
Mark AveryWhen you tax something, you get less of it. In many cases, that's precisely why the item is taxed. Alcohol taxes, tobacco taxes, "luxury" taxes - all are crafted to reduce the use or purchase of those items. Our economy requires that we generate more income and more investment, and to do so requires that we spend less of what we make so there's something left to save and invest. So what does Government do? It taxes income and investment but not spending. Hello? That's exactly the opposite of what makes sense! A flat tax is still an income tax - the opposite of what makes sense. The Fair Tax is, in part, a national embedded retail sales tax - sales, as in spending on new things sold at retail. So which is a better way to increase income and savings - taxing income or taxing spending? Can I get a "Duh"? Tax spending and not income. That's the Fair Tax in a nutshell. The main problem with the Fair Tax is that you can't do it overnight. A prerequisite for implementation is repealing the Sixteenth Amendment. That requires a two-thirds supermajority in Congress to pass it and ratification by two-thirds of the states. This is precisely why Herman Cain didn't try to start there - the Fair Tax is the next phase of his plan after 999 which can get the transition started as soon as it's passed.
30 weeks 3 days ago
Bolsterde's picture
Donald BolsterMy preference is the FairTax as it is truly fair, will reduce the size of the IRS reducing taxpayer expenses, everyone that buys something in our country will pay the 23% consumer tax (legal and illegal immigrants) and we will not longer have a federal tax form. Those under the poverty level will get a monthly check so they can pay the consumer tax. The rich buy more consumer products, and will pay more in taxes. If you do not want to pay more to the federal government, buy less. The federal government revenue will increase, and the American citizen will pay less in taxes. Flat Tax is okay, but we will still have a federal tax form and the IRS will remain too large and cost us too much!
30 weeks 1 day ago
billepayne's picture
William PayneI'm in agreement with the FairTaxers here for many reasons, not the least of which is that it expands the tax base. What is "expanding the tax base"? That means that EVERYBODY pays tax and contributes to the welfare of the country. Under the FairTax, 11 million+ illegals will begin paying the same tax as you pay. So will the 58 million visitors to the country, who spend an average of over $2,000 each. You do that math. Then there is the $1 trillion underground economy. Again, easy math. Expanding the tax base makes it easier on the rest of us. The flat tax does NOT address expanding the base. We started with a flat tax. How do you like it now? http://www.fairtax.org/site/PageServer?pagename=about_main
30 weeks 1 day ago
RichardTaylorAPP's picture
Richard TaylorRead the lesson regarding "FairTax" and Fairness i.e. Jelousy Taxes "Special Report #5" (far right) on the American Patriot Party.CC: http://www.americanpatriotparty.cc website front page as well as viewing our Opposition to the FairTax and other Unenumerated Flat percentage tax systems: For more on the American Patriot Party's opposition to unenumerated percentage taxes Go Here.<
30 weeks 1 day ago
brown_scott's picture
Scott BrownWhy would anyone get a rebate check? The "poor" should pay taxes just like the rest of us! They buy less therefor paying less in taxes! EVERYONE should pay something!
27 weeks 1 day ago
syleeone's picture
S LeeFair tax may not be fair. This "fair tax" could create a problem when we sell our house. Lets see; $250,000 sales prices minus 17% for the government. Then 7% for the Realtor and the regular closing costs. I could not afford to sell my house. What about my doctor, I can go get that colonoscopy and pay 17% on the $4500.00 medical bill. Will my insurance cover any of the tax or would I just pay tax on the whole thing and the insurance will cover their 80% of the total bill less tax? Alot of things are part of our daily life that we don't pay tax on directly. These things need to be considered. The national average for selling a house is every three to five years a family sells and moves. Wow, this in itself would be a great way for the government to work on making some money to cover the national debt. And with the baby boomers, we have become a national with a large population of senior citizens. The preventative medical procedures are very expensive and right now they are not taxed. Fair Tax may not be fair when all things are considered. So show me the bottom line or get off my radar.
30 weeks 1 day ago
brown_scott's picture
Scott BrownLOL S Lee, really? You really believe that the Doctor is not charging you a tax? Just because its not listed on bill doesn't mean its not there. Everything (even your house) has an embedded tax in it. And if you choose to buy or sell ANYTHING and pay the tax, IT IS YOUR CHOICE! Where now the only way to get out of paying the tax is to be on welfare!
27 weeks 1 day ago
Richard Hogg's picture
Richard HoggI'm sorry, but giving Washington our tax dollars is like letting an alcoholic manage a liquor store or a drug addict manage a pharmacy; flat tax, 9-9-9 tax or whatever you call it won't matter, because no matter how honorable the intent, if you give it to Washington they simply haven't the ability to resist the temptation to be bought out for the vote. The true bold move would be to get Washington of the business of taxing the people and let individual States management the money.
30 weeks 15 hours ago
cfwabq55's picture
Charles WilsonComment on this post...This comment is absolute crap: "A flat tax would be a significant improvement from the status quo. It means that individuals would be taxed at one low rate." Teddy Roosevelt was a major initiator of progressive taxation. Ronald Reagan affirmed it and we would still be paying for World War II without raising more tax from those who have RECEIVED THE GREATER HARVEST FROM NATIONAL INFRASTRUCTURE INVESTMENTS. Yes, the tax system is complicated and it is clear the complexity arises from those who used personal treasure to Lobby and insert special interest legislation to distort sweetheart deals away from progressive taxation. Some of these were well meaning and others were pure slime. Sure tax reform is needed to retire the sweetheart deals -- the honeymoon must end. BUT backing off from the basic wisdom of progressive taxation is absolutely nuts for extending the influence of big money to distort democracy. Folks banter about "class warfare" claims. "Class warfare"name calliing is a flacid propaganda shield when compared to "slicks and stones do break our bones" reality. Breaking the leg of progressive taxation means we can’t step up to reach higher. Folks can't get a piece what made our country great without raising the armies, building the bridges and dams and electric grids, funding the leaps forward (not tackled by private enterprise) and funding good universal public education. This cannot be done by depending on tripping the lower and middle class basic survival necessities with stupid notion of “ fairness” of necessities receiving the same tax bite as upper class luxuries and investment gambles and discretionary funds. YES!!, Repeal stupid tax gimmicks but do not kick the stool from beneath a necessary leveling tool that brought us 100+ years of social stability, the educated workforce that won WWII and dominated industrialized societies. The opportunities for the majority of innovators and true entrepreneurs do not come from trust fund children. We need educated workers not ethanol welfare for industrial farms. We don't need the half billion dollar Bob Dole tax giveaways to the Gallo Wine family, we need the opportunities of cultivated minds and even a few free school meals, (if needed), to produce the likes of Steve Jobs, Bill Gates, Andy Grove. The Kennedy Space Program brought us Intel, Apple, Microsoft, Verizon Amazon by driving launch-able microelectronics -- it did not come from a DuPont or Roosevelt or a Kennedy or Gallo family fortune. All I am saying is give meek class a chance. Celebrate progressive taxation!
29 weeks 5 days ago
cfwabq55's picture
Charles WilsonComment on this post...This comment is absolute crap: "A flat tax would be a significant improvement from the status quo. It means that individuals would be taxed at one low rate."Teddy Roosevelt was a major initiator of progressive taxation. Ronald Reagan affirmed it and we would still be paying for World War II without raising more tax from those who have RECEIVED THE GREATER HARVEST FROM NATIONAL INFRASTRUCTURE INVESTMENTS. Yes, the tax system is complicated and it is clear the complexity arises from those who used personal treasure to Lobby and insert special interest legislation to distort sweetheart deals away from progressive taxation. Some of these were well meaning and others were pure slime. Sure tax reform is needed to retire the sweetheart deals -- the honeymoon must end. BUT backing off from the basic wisdom of progressive taxation is absolutely nuts for extending the influence of big money to distort democracy. Folks banter about "class warfare" claims. "Class warfare"name calliing is a flacid propaganda shield when compared to "slicks and stones do break our bones" reality. Breaking the leg of progressive taxation means we can’t step up to reach higher. Folks can't get a piece what made our country great without raising the armies, building the bridges and dams and electric grids, funding the leaps forward (not tackled by private enterprise) and funding good universal public education. This cannot be done by depending on tripping the lower and middle class basic survival necessities with stupid notion of “ fairness” of necessities receiving the same tax bite as upper class luxuries and investment gambles and discretionary funds. YES!!, Repeal stupid tax gimmicks but do not kick the stool from beneath a necessary leveling tool that brought us 100+ years of social stability, the educated workforce that won WWII and dominated industrialized societies. The opportunities for the majority of innovators and true entrepreneurs do not come from trust fund children. We need educated workers not ethanol welfare for industrial farms. We don't need the half billion dollar Bob Dole tax giveaways to the Gallo Wine family, we need the opportunities of cultivated minds and even a few free school meals, (if needed), to produce the likes of Steve Jobs, Bill Gates, Andy Grove. The Kennedy Space Program brought us Intel, Apple, Microsoft, Verizon Amazon by driving launch-able microelectronics -- it did not come from a DuPont or Roosevelt or a Kennedy or Gallo family fortune. All I am saying is give meek class a chance. Celebrate progressive taxation!
29 weeks 5 days ago
cfwabq55's picture
Charles WilsonI've seen more wisdom come from the back end of farm animals. Progressive taxation has served us well since Teddy Rosevelt's advocacy. It was in solid use during our most enriched period -- Post WW2 until '80 -- EVEN AT HIGH TAX RATES WE PROEPERED BEYOND ALL OTHER PEOPLE! It doesn't make sense to tax-deplete income, to a point below subsistance, of someone barely eating. The nonsense comes when the same percentage is applied to those of us who have harvested the infrastructure foundation (paid for by those who paid tax before us) when they rar exceed resources to eat, have shleter and education fundamentals. The USA enrichment during our high progressive tax era defeats all the nonsense about lost motivation and incentive. The complexity of the tax code comes from all the millions of pages written for evading tax payment, the six tiers of tax rates are not a problem, the complexity comes from excusing the payments from those who buy the law changes. Fix real problems, instead.
27 weeks 1 day ago
doncar1us's picture
Clyde CarrollI heartily applaud the goal of tax law simplification. Lawmakers generally have grown addicted to endlessly adding and modifying tax laws largely for the self serving purpose of garnering votes and campaign contributions from affected special interests. Our grotesque tax code is Exhibit A in support of this assertion. One way to control cancerous tax law growth is a cap and trade mechanism on its total length. I suggest FreedomWorks might champion a constitutional amendment that limits total tax law length and rate of change. The amendment could state that five years after ratification any tax not within a tax code limited to say two hundred and fifty thousand printable characters (about a hundred pages) would be null and void. And, tax law changes could occur no more often than say once every six months. The amendment would be silent on what was taxed, how much tax was raised, the proportion allocated to the needy as tax subsidies, and the proportion paid by wealthier persons. Without such a cap and trade mechanism on tax law how will the problem with the Reagan era tax reforms be avoided? Namely, how will we avoid lawmakers subsequently passing an even bigger batch of tax breaks and subsidies for special interests' votes and campaign contributions than the ones we might wipe out when we achieve a simple tax code consisting of a flat tax?
23 weeks 6 days ago
clickdaddyads's picture
adam khanI think the flat tax system should also be brought to the UK as the tax system here is also very complicated and i believe why should people who earn more pay more just because they have more skills & develop they knowledge & themselves to earn what they earn. http://www.mymeddirect.co.uk
13 weeks 4 days ago
Repeat Offender's picture
Douglas GoralskiAs income inequality in America increases a flat tax will only increase that disparity.
8 weeks 5 days ago