According to truthinmedia.com, Rand Paul has announced that he will soon release a plan to repeal the entire I.R.S. Code and replace it with a 14.5% flat tax.
According to the report, Paul says that the current U.S. income tax is a an “economic drag” that reduces productivity and destroys jobs. He also states that the payroll tax is used by the I.R.S. to harass people who have political views that it doesn’t agree with. In addition, he claims that the payroll tax is unfair because it takes away the wages of workers before they even see them.
The report also states that Paul wants to cut taxes by more than $2 trillion and eliminate “gift and estate taxes, telephone taxes, and all duties and tariffs”. According to Paul, this will motivate employers to hire more workers and will “raise after-tax income by at least 15% over 10 years”.
According to the report, an outline of the plan was released in the Wall Street Journal, but a more detailed explanation of the plan has not yet been released. According to Reason.com, however, Paul has stated that the plan will retain the popular home mortgage and charity deductions that are included in the current income tax but that no other deductions will be allowed.
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Law Offices of Darrin T. Mish, P.A.: Tax Attorney