Treatment Plan: Repeal the Entire Tax Code and Replace It With a True 14.9 Percent Flat Tax
• Replace the tax code with a true flat tax – no deductions, tax shelters or loopholes.
• Tax all income at a uniform 14.9 percent rate.
• To protect those rising from poverty, apply the flat tax only to income above 150 percent of the Federal Poverty Level (FPL). For example, a family of four will not pay the 14.9 percent tax on their first $36,375 of income.
• Treat everyone in America as citizen-owners and require those whose income is at or below 150 percent of the FPL to make a de minimis tax payment annually.
• Tax income only once: no more double taxation of capital gains, dividends and interest income at the personal level.
• Eliminate deductions for home mortgage interest, charitable giving and state and local taxes. The overwhelming majority of Americans do not benefit from these itemized deductions.
• Eliminate the Alternative Minimum Tax (AMT). Under the current tax system, the AMT forces middle-class Americans to calculate their tax liability twice and punishes them by requiring them to pay the larger of the two tax bills.
• Abolish the death tax in its entirety.