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Rand Paul Wants To “Blow Up” Tax Code




|| By FITSNEWS || U.S. Senator Rand Paul of Kentucky wants to “blow up” the federal tax code and replace it with a flat 14.5 percent tax on all personal income (wages, salaries, dividends, capital gains, rents and interest).  Paul’s plan – unveiled via an opinion piece in The Wall Street Journal – would eliminate hundreds of tax loopholes and deductions – preserving only the deduction on mortgages and charitable donations.

“My plan would blow up the tax code and start over,” he wrote, criticizing other “Republican” candidates who argue the system simply needs to be tweaked.

“In order to defeat the Washington Machine, we must drive a stake through the heart of the IRS and our terrible tax code,” an accompanying release from Paul’s campaign noted, adding that his tax proposal “is simple, fair, and cuts taxes for every single working American.”

According to Paul’s Journal column, in addition to the flat 14.5 percent rate his plan “also eliminates the payroll tax on workers and several federal taxes outright, including gift and estate taxes, telephone taxes, and all duties and tariffs.”

Payroll taxes, FITS readers will recall, were recently raised by Barack Obama and “Republican” leaders in the U.S. Congress as part of the so-called “Fiscal Cliff” deal.

Add it all up and Paul’s campaign says “$2 trillion will be returned to American families in the first 10 years,” an investment in the economy it says will boost American’s flagging gross domestic product by 10 percent and create two million new jobs over the coming decade.

In addition to creating an “economic steroid injection,” Paul says his campaign will have other benefits – like effectively shutting down a federal agency that has “routinely abused its auditing power to build an enemies list and harass anyone who might be adversarial to President Obama’s policies.”

Obviously he’s referring to the Internal Revenue Service (IRS), which was exposed two years ago for its discriminatory persecution of limited government groups (and which continues discriminating to this day).

“Another increasingly obvious danger of our current tax code is the empowerment of a rogue agency, the IRS, to examine the most private financial and lifestyle information of every American citizen,” Paul wrote.

That’s true …

This isn’t just an economic issue … it’s a liberty issue as well.  Props to Paul for addressing both in his plan.  Also, props to him for being willing to cut out exemptions which provide unfair competitive advantages to higher wage earners.

We’ve obviously been less-than-thrilled with Paul of late, but his tax plan strikes us as an excellent first step in a long-overdue conversation on how the federal government collects its revenue – and how much revenue it collects.  It also represents his first attempt to answer the only questions that really matter when it comes to assessing the merits or demerits of candidates for any elected office …

1) What are you going to spend the people’s money on?  2) How much of it are you going to spend?  and 3) Where are you getting it from?

So far, we like what we’re hearing from Paul on the latter question.