Thoughts on Rand Paul's tax plan?

[weso1]

14.5% flat tax rate for personal, capital gains and business income.

Before you grump about the flat tax, consider that this does include an exemption for the first $50,000 for a family of four. So in essence this is actually a progressive tax. Those with a family who make less than 50,000 pay 0% tax. Those with an average American family who make 75,000 would pay tax on only $25,000, which is about 5% tax. Those who make $100,000 would pay 7.25% tax. There would also be a mortgage deduction and charitable deductions which could make it even less. The uber wealthy would pay double the tax rate of those who make $100,000. Seems like a fair system to me. Also, corporations and capital gain investors would pay the same tax rate without tax shelter.

[acesfull86]

Better than the status quo

[sturg33]

Agreed... better than the status quo.

[Tapate50]

Agreed... better than the status quo.

Without looking into it much yet, can't really argue with it at this point. I think the current system is a cluster**** if I'm going to put it nicely.

[bravesnumberone]

Need a little more info but it sounds better than many of the other flat tax proposals I've heard.

[50PoundHead]

I take it he raises less revenue with the plan, but as far as flat tax proposals go, it looks decent. Would have to know more. I can't see how he could drop the rates this dramatically and retain the home mortgage interest deduction.

[weso1]

I take it he raises less revenue with the plan, but as far as flat tax proposals go, it looks decent. Would have to know more. I can't see how he could drop the rates this dramatically and retain the home mortgage interest deduction.

Thanks for this post 50. I really respect your opinion and I think this is a perfect example of compromise. I really think Rand has come up with a good plan here. I think this is a great starting platform for a "flat tax". I agree with 50 that this particular rate might be a bit unrealistic. But I really think this idea of a more simplistic progressive tax is very interesting.