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Rand Paul: "Americans See The Rot In The System...And Want It To End!"
Authored by Rand Paul, originally posted at The Wall Street Journal,
Some of my fellow Republican candidates for the presidency have proposed plans to fix the tax system. These proposals are a step in the right direction, but the tax code has grown so corrupt, complicated, intrusive and antigrowth that I’ve concluded the system isn’t fixable.
So, I am announcing an over $2 trillion tax cut that would repeal the entire IRS tax code—more than 70,000 pages—and replace it with a low, broad-based tax of 14.5% on individuals and businesses. I would eliminate nearly every special-interest loophole. The 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. I call this “The Fair and Flat Tax.”
President Obama talks about “middle-class economics,” but his redistribution policies have led to rising income inequality and negative income gains for families. Here’s what I propose for the middle class: The Fair and Flat Tax eliminates payroll taxes, which are seized by the IRS from a worker’s paychecks before a family ever sees the money. This will boost the incentive for employers to hire more workers, and raise after-tax income by at least 15% over 10 years.
Here’s why we have to start over with the tax code. From 2001 until 2010, there were at least 4,430 changes to tax laws—an average of one “fix” a day—always promising more fairness, more simplicity or more growth stimulants. And every year the Internal Revenue Code grows absurdly more incomprehensible, as if it were designed as a jobs program for accountants, IRS agents and tax attorneys.
Polls show that “fairness” is a top goal for Americans in our tax system. I envision a traditionally All-American solution: Everyone plays by the same rules. This means no one of privilege, wealth or with an arsenal of lobbyists can game the system to pay a lower rate than working Americans.
Most important, a smart tax system must turbocharge the economy and pull America out of the slow-growth rut of the past decade. We are already at least $2 trillion behind where we should be with a normal recovery; the growth gap widens every month. Even Mr. Obama’s economic advisers tell him that the U.S. corporate tax code, which has the highest rates in the world (35%), is an economic drag. When an iconic American company like Burger King wants to renounce its citizenship for Canada because that country’s tax rates are so much lower, there’s a fundamental problem.
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. We now know that the IRS, through political hacks like former IRS official Lois Lerner, routinely abused its auditing power to build an enemies list and harass anyone who might be adversarial to President Obama’s policies. A convoluted tax code enables these corrupt tactics.
My tax plan would blow up the tax code and start over. In consultation with some of the top tax experts in the country, including the Heritage Foundation’s Stephen Moore, former presidential candidate Steve Forbes and Reagan economist Arthur Laffer, I devised a 21st-century tax code that would establish a 14.5% flat-rate tax applied equally to all personal income, including wages, salaries, dividends, capital gains, rents and interest. All deductions except for a mortgage and charities would be eliminated. The first $50,000 of income for a family of four would not be taxed. For low-income working families, the plan would retain the earned-income tax credit.
I would also apply this uniform 14.5% business-activity tax on all companies—down from as high as nearly 40% for small businesses and 35% for corporations. This tax would be levied on revenues minus allowable expenses, such as the purchase of parts, computers and office equipment. All capital purchases would be immediately expensed, ending complicated depreciation schedules.
The immediate question everyone asks is: Won’t this 14.5% tax plan blow a massive hole in the budget deficit? As a senator, I have proposed balanced budgets and I pledge to balance the budget as president.
Here’s why this plan would balance the budget: We asked the experts at the nonpartisan Tax Foundation to estimate what this plan would mean for jobs, and whether we are raising enough money to fund the government. The analysis is positive news: The plan is an economic steroid injection. Because the Fair and Flat Tax rewards work, saving, investment and small business creation, the Tax Foundation estimates that in 10 years it will increase gross domestic product by about 10%, and create at least 1.4 million new jobs.
And because the best way to balance the budget and pay down government debt is to put Americans back to work, my plan would actually reduce the national debt by trillions of dollars over time when combined with my package of spending cuts.
The left will argue that the plan is a tax cut for the wealthy. But most of the loopholes in the tax code were designed by the rich and politically connected. Though the rich will pay a lower rate along with everyone else, they won’t have special provisions to avoid paying lower than 14.5%.
The challenge to this plan will be to overcome special-interest groups in Washington who will muster all of their political muscle to save corporate welfare. That’s what happened to my friend Steve Forbes when he ran for president in 1996 on the idea of the flat tax. Though the flat tax was surprisingly popular with voters for its simplicity and its capacity to boost the economy, crony capitalists and lobbyists exploded his noble crusade.
Today, the American people see the rot in the system that is degrading our economy day after day and want it to end. That is exactly what the Fair and Flat Tax will do through a plan that’s the boldest restoration of fairness to American taxpayers in over a century.
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What was wrong with our tax system before the IRS? Import duties, excise taxes, and an occasional direct tax on property owners that had to be apportioned by the census? We taxed foreigners back then to sell their shit here. Now we're better off taxing the locals and letting shit in for free? FUCK THIS TAX!! History shows it is not necessary and not productive.
Secondly, even if this law was considered there would have to be a clause that anybody submitting a bill to RAISE the tax would be guilty of a capital crime, because YOU KNOW what would happen otherwise.
I'd like to see flat rates on everthing .... we have progressive rates on everything .... from school lunch programs .... to Obombacare .... to college tuition .... everything !
One does not derive income by providing services and charging for them.
What if we all just took the write in route and voted for "ME"? Then we could all be POTUS as it should be. Now let's take a look at the official count, 4.7 million for Jeb, 2056 for Hitlary, and 97 million for me. Cool, looks like the "Me" candidate won. New tax code is, me don't pay no taxes. Me don't go and fight in stupid petro wars and me gonna take you congressional crooks to the woodshed. Me gonna thro the lobbyists to the wolves in the dessert and me not going to take no shit. Me like the Constitution and those of you that don't can leave, not letting the door hit you in you ass on the way out. Me win, me matters. Me, me, me!
When was inequality at its lowest?
In the 1950s to the 1970s when taxes on the wealthy were at their highest.
The problem with this attempt at cutting out the rot is that it misses the rot. The rot is the income tax. It enables governments to categorize us as citizen debt slaves insofar as that's the first step in hypnotizing the unsuspecting that they must pay coupons on bonds. "Someone's got to pay for the government."
Well, the government is not getting paid for...to the tune of trillions of dollars. But U. S. Treasury bond holders sure as hell are getting paid back the money we "owe" them.
No. End the income tax, Mr. Paul. Overturn the Sixteenth Amendment. That will stop the rot
Rot in the system?
The US govt votes to arm Nazis in Ukraine and John 'Angel of Death' McCain flies by military aircraft to Dnepropetrovsk to meet up with them. Just as with his ISIS buddies, he goes for a group photoshoot.
http://colonelcassad.livejournal.com/2245374.html
My Plan..
Flat tax with no deductions side by side with the current system for four years...
you have the option of just sending in your FLAT TAX...or dealing with the 1040...
at the end of four years, all must move to the FLAT TAX
Wow. I like that idea. Then no one complains.
Democrats will attack this because it comes from a Republican, the MSM will attack this because it comes from a Republican, and the Republicans will attack this because their campaign war chests get filled by contributors willing to pay big money to get Congress to add another loophole. Where most flat tax advocates failed in the past is getting tied up in defending a certain percent rate, and in being tongue tied by questions from the MSM like 'what do you say to a family of 17 living at the poverty level in Podunk, Arkansas that would actually see their tax go up $20 a year'. Add in those that get a certain tax break now but would lose those, and their 'what if' questions. Any such tax plan has to be simple enough for the average voter to understand and support, but Rand will also need to turn around the MSM questions so he is not always defending his plan, but rather attacking the current mess we have now.
A meritocracy gives everyone equal opportunity and is totally fair.
What does a meritocracy look like?
1) Everyone succeeds on their own merit
2) There is no un-earned wealth or power, e.g inheritance, trust funds, hereditary titles
3) There is a uniform education system for everyone with no private schools or universities.
One can assume all the distortions tilt the playing field in favour of the next generation of those at the top, e.g. inheritance; trust funds; hereditary titles; private schools and universities.
Those at the top know that their future generations are unlikely to make it on their own merit and have put in place mechanisms to circumvent Darwinism.
This is a fair system, how about it?
" So, I am announcing an over $2 trillion tax cut that would repeal the entire IRS tax code—more than 70,000 pages—and replace it with a low, broad-based tax of 14.5% on individuals and businesses. I would eliminate nearly every special-interest loophole. The 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. I call this “The Fair and Flat Tax.” "
A flat-rate tax, is by definition, REGRESSIVE. That means, the less income you have, the more of your income (proportionately) you pay. A non-regressive tax takes income into consideration and, in fairer tax systems, there is a 'tax-free' allowance. This is just more nonsense paraded in DC as 'fairness'. It isn't fair at all. In look and feel, it is similar (but not as draconian, phew!) as Margeret Thatcher's infamous 'Poll Tax' (Community Charge) of 1990 which ensured that for over a generation there have been no more than 3 Conservative MPs in Scotland and probably gave rise to the enduring popularity of the SNP. The Tories had to toss her out of office to stop the political 'fall-out'.
You cannot have it both ways. As I have made more and more money, my taxes regressed as well, due to CPA-Created Write-offs. I ran my own business and then suddenly, every thing i owned was part of a way to reduce my overall income and thus my tax liability. There is no other way I can think of that would be more easy on tax payers than just a single page, one tax rate, etc.
Politicians, pundits, commentators, economists, think-tank gurus, and men-on-the-street talk about reforming this or that part of U.S. government without ever getting down to the real nitty-gritty.
The single most effective step in cleaning up the rotten mess would be to rescind Executive Order #10988. Remove AFLCIO along with every other organized labor group from all offices of public service. The millions of bureaucrats who now staff every goverment office (city county state federal) are most loyal to the Big Labor Union that keeps them safe, fat & sassy in their featherbed job.
JFK issued #10988 in January 1962. Two years later in May 1964 LBJ delivered his Great Society speech in Ann Arbor. From that point on, U.S. government has come under the increasing control of Big Labor. It is not-for-nothing that AFLCIO president Richard Trumka quit the United Mine Workers and took over AFLCIO. Search: RICHARD TRUMKA EDDIE YORK for insight into the character of the man who bosses more government bureaucrats than anyone else. AFSCME is the biggest single constituency under the AFLCIO umbrella.
Rand Paul's pandering talk about "rotten government" is nothing but blah-blah without an out-loud condemnation of Big Labor corruption in U.S. government. Every single IRS worker belongs to a labor union. The wealth they confiscate is used first & foremost to pay their salaries, pensions, healthcare, etc. And that's the way it is from top-to-bottom in U.S. government across the land.
"There are a thousand hacking at the branches of evil to one who is striking at the root." - Henry David Thoreau
I am sick of any/all .gov politicians. Fuck every one of you. All talk no action. Fuck you assholes, put me in charge and I hang every one of you and dissolve federal government in entirety
Rand Paul is awesome, he gets my vote for sure!
I'm not sure. He is maybe a little idealistic and ignorant about what would happen to the Economy. Yes, I see a million jobs that would be lost since they would no longer be needed in doing Tax Accounting & Financial Planning. So he sees 1.5 Million jobs being created, but maybe 1.5 Million jobs are lost too.
Why not a VAT Tax instead of an Income Tax?
And why only two loopholes, when we know we want to encourage home ownership, health insurance, education, pension and retirement contributions, payments for health care of kids, and even small business formation?
Implementation of Reforms and Projects is key to success.
Reform of Expensive Federal Spending = Hiring a Private Sector Expert to lead government projects and pay low government civil service wages to get it done(Seriously contracting out is triple the cost).
So yeah, Rand is correct, we ought to be able to cut federal spending while keeping important federal spending going under a Reorganization, and create New Jobs.
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- Simplify, Streamline, and Standardize -
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We have plenty of smart Americans that can run Government IT, Computer Servers, computer security... and they would do it for $15-20 per hour instead of paying contractors $150 Dollars an hour. Privatization might have been needed to start new computer projects 25 years ago, but now it is a Corporate Subsidy.
I read this article this morning and now I forgot my main problem with it. Money flows that stop dead will crash the economy. I don't mind people losing jobs, but a lot federal spending can be redirected to states and infrastructure type spending. We spend like $3.1 Billion a year for Job Training and $1.6 Billion in Job Corp, but subsidize corporations hundreds of Billions including in the MIC-Security-Prison Sectors... plus the money given away to build things in foreign countries and influence/bribe powerful foreigners for our Foreign Policy.
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- Federal Privatization & Subsidies are Expensive
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Late Add: Capital Flight, DeCapitalization of Industries, Monetary/Economic Leakage, Wealth Moving Off Shore, Outsourcing Off Shore, Growth in Temp Jobs & Part Time Jobs, Off Shore Production, Off Shore Tax Jurisdictions, Off Shore Trusts and Tax Evasion, TPP, TAP, TTIP, TAA, TISA, NAFTA, No Price Controls on Education & Health Care, No use of Admin Costs on Financial Ratings for Organizations and Instruments, Public & Private Executives Living Like Kings without Limits, No Leadership on loss of Jobs & Middle Class, Wealth Transfers, Wealth Extraction, Growing Inequality, Government Transfers of $1 Trillion a year for Health Care. Revolving Door to Industry, Regulation Capture, Regulator capture. We need Term Limits for Bankers, Lawyers, Judges & Politicians after we outlaw Lobbying, Gift Giving, and require Break up of Anti-Trust Corporate Monopolies.
Here is better work by Rand Paul:
S.1471 - Transparency for the Families of 9/11 Victims and Survivors Act of 2015
Sponsor: Sen. Paul, Rand [R-KY] (Introduced 06/01/2015)
Committees: Senate - Intelligence
Latest Action: 06/01/2015 Read twice and referred to the Select Committee on Intelligence.
To require declassification of certain redacted information from the Joint Inquiry into Intelligence Community Activities Before and After the Terrorist Attacks of September 2001 and for other purposes.
Late Add:
I actually think with the Strength of Small Business, Skill of Americans, and the US Work Ethic... we can fix all the problems with Banks, Corporations, and Federal Government... including fixing Social Security & Medicare/Medicaid.
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We have a Socialist Country. No Question about this.
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Being Socialist with Medicare & Medicaid means we have to have Price controls, expense controls, Liability controls, Growth Controls, and Admin & Overhead Controls for our US Health Care system. It is fixable if we recognize that it is Wealth Extraction. Financial ratings for our Health Care organization would easily audit the one with the big Perks for Executives(with a little reform of Ratings Agencies). Legislation would have to limit liability for doctors. I probably missed something here.
Social Security is easily fixable.
My plan:
1) Elimination of all income taxes-- national, state, and local.
2) Replace them with sales taxes at all levels.
3) A constitutional cap on the total combined percentage of sales taxes that can be imposed at all levels of government on any citizen.
4) A single treasury account for each level of government that handles all incoming revenues and processes all outgoing payments. No tricks, special accounts, or off-budget gimmickry.
5) A balanced budget requirement that binds each level of government to spend no more than the total amount of recepits taken in to the treasury account during the previous year.
6) An exception for military spending in times of declared war against a directly specified enemy up to one year after the date of their surrender only-- to be financed solely through sales of war bonds. No national emergency bullshit that will be used as a permanent evasion. This exception cannot be used for more than four years total out of every ten year period and must include provisions for a sinking fund to retire the war bonds that comes out of the annual balanced budget.
7) Tranformation of Social Security system into privately-owned retirement accounts.
8) Establish a price on the valuable privilege of American citizenship. Anybody who comes into the country can buy one for $50,000 and make payments, but no citizenship benefits until it is paid off and missing even one payment cancels the deal.
9) Establish an equivalent price for surrendering American citizenship and leaving the country. Hate America? Go to the Treasury, collect $50,000 and GTFO-- never to return except to the transit lounge at an International Airport. Much cheaper than institutionalizing everyone.
10) Prevent padding of government revenues through predatory law enforcement by mandating that all fines, penalties, and costs imposed by the court system are to be either donated to a charity of the choice of the victim or converted into cash and publicly burned. The Declaration of Independence specifically inveighs against this evil practice that turns the Justice system into a Revenue Machine for the benefit of the State.
11) Allow import duties and tariffs to be set at whatever level the government feels wise.
12) Since there will be no income tax or social security system, there will also be no need for a government issued identification number-- all of which will be eliminated.
13) At all levels of government, the bottom-rated 5% of employees in each pay grade are automatically fired every year.
14) Maximum of ten years of lifetime total service in elected office at all levels combined.
15) Elimination of all post-employment pensions and benefits for all government employees.
16) Establishment of a dedicated Anti-Corruption Office whose only function is to oversee and investigate government lawbreaking and corruption.
17) A faithful execution provision in every law, so that any law that is not zealously enforced at all times and against all infractions is automatically void.
18) Cancellation of all delegations of law or rule making authority from the elected representatives of the people to any other entity.
19) Return to the completely confidential and secret ballot. No strongarm squads armed with lists of voters who have not yet voted and need to fill out their ballots under the gaze of private goon squads. No more election night horseraces. No more anxious tabulation by officials of early voters and who they are voting for. Nobody touches a ballot, assembles data of any sort or records that it has been made until the close of the polls. Each individual precinct then reports only that it has completed the vote count but provides no figures to anybody. Only when every single precinct has reported completion are the totals then forwarded for tabulation. This will destroy the current system of "finding" missed ballots. Immediate dismissal from all current or future government service for failure to accurately account for all ballots in a precinct but no other redress in terms of vote counting. Once they've certified, they are bound to the result.
20) Dispersal of federal government functions away from Washington, DC. Agriculture Department in Nebraska, for example. Each Congressman is legally bound to stay in his district all the time while in office. No travel out of the district except by turning over his office and salary temporarily to the next highest vote-getter in the previous election. All Senators are required to reside in their state capitals, where they may receive binding instructions on how to vote on any particular matter by the combined action of the state legislature and governor's signature. Congress to meet virtually, with all proceedings provided to the public via live streaming feed and complete archive.
Someone should acknowledge your detailed response.
You did better than 90% of ZH. Well done.
I posted something on this article which is not as nearly complete. I have tried to post plans before on various websites or blogs. I don't get rave reviews. Tough audience.
Problems of any legislation or congressional plan are many. The Legislation to build the Wall on the Mexican border is a good example except that it became politicized, powers within the system apparently prevented the building of the wall for political reasons. Normally you have look at maybe a dozen reasons the government program won't work.
- Staffing, Budget, Facilities, Training of people involved, contract process, contract cost, monitoring of contract, Scope of work in contract, Quality Inspection in contract, Sub-contracting of contract, expertise of agency involved in either contracting or implementation
- Proliferation of laws & Regulation & Liability of the agency involved in implementation of the Legislation
- Continued Support of US Congress & President
- Are payments to contractors phased to milestones or work complete?
- Is Program manager experienced in recording & tracking costs & finding actual cost of program, experienced in monitoring progress, quality & costs,... is Program manager trained in program management?
- Is reform or Program largely crippled by Legislation, Laws, Regulations, and procedures that persist in the system?
- What is the History, Background, Legislative Background, Historical Problems & Symptoms, what do the Users of the System say about what has happened and is the status quo, what do citizens say about that has happened, what are problems & Symptoms of the Status Quo?
Probably missed a lot here.
What are the systems that make up the Income Tax, FICA & Federal Government, Health Care, Retirement, Pensions, and are found in the entire Federal Budget. What are the Banking Systems. What are the Penal & Judicial Systems that produce Criminals and Gangs through Prohibitions of consensual activities between adults? What are the War Driver Systems & Press Ownership by the Wealthy Systems? What are the Info Suppression and Propaganda Systems?
Rand Paul misses one key point: most Americans don't '. . . see the rot in the system . . .' at all; most don't pay attention to elections until the last ten minutes before they vote to send the same career politicians back to Washington who continue to act in their own self interest to ensure they can keep returning to Washington to act in their own self interest. Most Americans are blind to what is going around them every day.
In general I am for it but need to see more details.
Rand Paul threw his endorsement to someone other than his dad at a crucial time.
That pissed me off. I can not abide disloyal dogs, girlfriends or sons.
I don't harbor any hope a White Knight politico will solve our problems. The voting is all digital now so someone else makes our choice. We are no longer represented. We just watch the show. Send out the dancing bear!
The NWO plan is even bolder - eliminate 90% of the taxbase, that is, the tax payers...
Like every two-bit politicians, Rand Paul has a big mouth for platutudes,
but absolutely no knowledge whatsoever of economics that is
requisite for guiding the funcamental tax reform of a nation.
If it were not for the fact that Ron Paul is a well-known and
widely respected politican, Rand Paul would be instantly recognized
as the nincompoop that he is.
If John McCain's father and grandfather were not influential admirals;
John McCain would be instantly kicked out of everywhere for being
the incompetent warmongering asshole that he is.
If Hillary's husband Bill had not been President, she would be instantly
discredited as the corrupt hick politician that she is.
It would take someone with the knowledge and competence of
a Paul Volcker or Felix Rohatyn to even begin straightening out the US Tax Code.
The inevitable unintended consequences would be horrendous.
Radical slash&burn would be tantamount to economic suicide.
Get rid of the income tax amendment. The only reason it exists is to pay the bankers who create debt for currency. Fuck them. Put the Fed Reserve under the control of Congress where it belongs, print your own currency and screw the income tax amendment. It wasn't properly ratified anyway.
The trouble is too many people DON'T see the rot in the system; they are happily going along, sending the same career politicians back to Washington whose only concern is taking care of themselves so they can return to Washington to take care of themselves . . . to heck with the rest of us. Sad.
The trouble is too many people DON'T see the rot in the system.