Rand Paul (Tax Reform)

Paul's Tax Reform (section page)

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, Rand Paul devised his Fair and Flat Tax proposal. 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. Rand Paul's tax reform consists of "The Fair and Flat Tax" proposal. (RPW-TR)

The Fair and Flat Tax" proposal

• A $2 trillion tax cut that would repeal the entire IRS tax code
  • Replace the tax code with a low, broad-based tax of 14.5% on individuals and businesses applied equally to all personal income, including wages, salaries, dividends, capital gains, rents and interest
  • Eliminate every special-interest loophole
  • Eliminate the payroll tax on workers and several federal taxes outright, including gift and estate taxes, telephone taxes, and all duties and tariffs
  • All deductions except for a mortgage and charities would be eliminated
  • 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
  • 14.5% 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 (RPW-TR)

"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." (RPW-TR)

"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." (RPW-TR)

Distrust of IRS

"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." (RPW-TR)

Audit the Fed

"The Federal Reserve was created by Congress and is supposed to be overseen by Congress. The Fed is now in every nook and cranny of banking with unprecedented regulatory powers and no Congressional oversight. I believe the Fed should be audited and the regulatory power should be placed back under the control of Congress.

A complete and thorough audit of the Fed will finally allow the American people to know exactly how their money is being spent by Washington. For too long, the Fed has been operating under a cloak of secrecy. The American people have a right to know what the Federal Reserve is doing with our nation's money supply.

I will continue my fight to audit the Fed and restore transparency and fiscal sanity to our nation’s checkbook." (RPW-TR)