The New Fair Deal
It’s been a long time since I posted anything. I read this today and thought it might be of interest. A dozen House lawmakers and Sen. Mike Lee (R) of Utah – backed by swarms of activists affiliated with the group FreedomWorks – are offering up a package of about a dozen proposals that they’re calling The New Fair Deal. The tax portion is described this way:
No more pitting us against each other. Today’s hopelessly complicated tax structure unfairly pits one American against another. Marriage penalties, arbitrary annual extenders, and special-interest tax breaks typify a massively complex and inefficient tax code-and needlessly divide us.
Why not sweep all that away and replace it with a system that’s simple and fair to all? Under the New Fair Deal, distorting “credits” and deductions will be eliminated, today’s seven brackets will be reduced to just two, and taxation will be much more simple and efficient for everyone.
It then goes on to list some basics of the plan:
- Replaces today’s hopelessly complicated income tax code with a simple, two-rate flat tax system.
- A 1% “skin-in-the-game” contribution, so everyone pays something.
- Eliminates most credits, deductions, and exemptions, but retain a generous standard deduction and deductions for charitable donations and mortgage interest.
- Eliminates the marriage penalty through doubling.
- Repeals the Death Tax and the Alternative Minimum Tax.
So what do you think?