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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: