Issues

Taxpayer Protection Pledge

Position on Taxes

This issue is a success story for conservatives. I support tax reductions of any type, but more importantly, I support adopting an entirely new system of taxation – a Flat Tax. We should scrap the existing tax code on the basis that it is hopelessly complex, counter-productive, and completely wasteful. America does not have a 21st Century Information Age tax code. This is to the detriment of our great country and we need to send a representative to Washington who understands this. In addition to the Flat Tax, I believe we should abolish any and all forms of the Death Tax, and Capital Gains Taxes. Income should be taxed once, and taxed equitably. Systems of taxation have three distinct components; economic, social, and philosophical. All discussed below.

Economics

Our economy needs the American worker to keep more of what they earn. I believe strongly in empowering the individual, with special emphasis on the issue of taxes. Recent history has proven that tax reduction policies promote sound economic results. Presidents Reagan and Kennedy adopted tax reduction strategies, and both the 1960’s and 1980’s experienced substantial increases in federal revenues. For example, revenue to the federal government in the 1980’s almost doubled. The deficits we run are not the result of a lack of revenue; rather, they result from increases in spending that exceeds revenue. In short, we have a spending problem, not a lack of revenue problem.

The economics of tax reductions are simple. Workers and businesses have more to spend and invest, more goods and services are purchased, the workforce expands. This increase in economic activity increases the number of workers paying payroll and income taxes. In addition, more business tax revenue is collected from healthier profits. State treasuries also benefit by commensurate increases in sales tax revenue. I put forth the following conclusion; it is going to be much easier to pay for the War-on-Terror, Social Security benefits, and Medicare promises, when we have more money to do it with. Tax reduction policies yield more revenue to both the federal and state governments. I strongly support tax reduction policies.

Social

America’s working poor need social mobility. Social/economic mobility is one of the reasons America is the most successful economic experiment in the history of human civilization. One of the great financial stresses people have today is that they are living pay-check to pay-check, or don’t seem to make enough to ‘take the next step’ on the economic ladder. I believe all taxpayers, especially our middle class and working poor, need to be taxed at the lowest rate possible, or, in the case of the lowest income earners, should be relieved from paying the federal income tax. Presidents Reagan and Bush 43 have removed millions of taxpayers from the tax rolls. I support this, and we should look to expand the number of working-poor Americans that are relieved of having to pay federal income taxes. I subscribe to the belief that to give a man a fish is to feed him for a day, but to teach a man to fish, you will have feed him for a lifetime. Conservative tax policies promote individual empowerment and provide the economic security our middle-class deserves. Conservative tax policy makes the Republican Party the ‘Party of Main Street’.

Philosophy

One of the many reasons I am a Reagan Conservative is I believe that what you earn is yours, not the federal government’s. Not only as a taxpayer, but as a small business entrepreneur since 1991, I consider it an honor to be in a class of American workers who work endless hours, commuting many hours, forfeiting time with our family and friends, go to work sick, put up with road rage, deadlines, and workplace stress to produce the greatest country known to human existence. My personal economic struggles make me a potent candidate who can easily connect and identify with our working poor and middle class.

I believe the harder you work, the more you should earn. Tax reduction policies ensure this result. Parents are tasked with the responsibility of providing for their children. High rates of taxation increase the difficulty of a parent’s job. We cannot take over 50% of every dollar people earn and send it to Washington or a state treasury. This is a recipe for economic disaster. We also cannot take from those who are successful in life, transfer it to Washington, to then be redistributed in exchange for political support or political pay-backs. Our economic system needs to be cleansed of this corruption: A Flat Tax will not only simplify our tax system, but also remove power, money, and decision-making from Washington. All of our lives will be better with a Flat Tax.

President Bush, while he was addressing the country during one of his State-of-the-Union speeches, said that when you pass from this earth, the IRS should not follow you. I subscribe to this philosophy. I believe we should abolish all death and estate taxes. There is nothing more repugnant than the thought of a death tax.

I also believe the AMT should be abolished in its entirety.

HOW A FLAT TAX WORKS

When discussing the idea of a flat tax, we should remember one important fact: Many of the countries that were former Republics of the Communist Empire Soviet Union, have now adopted flat taxes, nine to be exact, including Russia herself. Yes, that’s right, President Putin, former head of the Soviet KGB, has come to the conclusion that a flat tax works. Now, if the communist country we defeated in the cold war can figure out that a flat tax is a good idea, then I would hope America, with the foremost free enterprise system in the world, can come to the same conclusion.

The taxation issue demonstrates whether or not you have an understanding of the information age (i.e. the computer chip) and what the computer chip is doing to economies, governments, and societies. Decentralization is in, and centralized decision-making is past tense. Tax systems that are simple to understand, reward risk-taking, create capital, and promote productivity, are the winners in the information age. I firmly believe we should structure our system of taxation, and regulation, so that America attracts capital, not sends it overseas. We should create wealth in our country so that, ‘a rising tide lifts all boats’. The plain truth is that governments need to look at citizens and businesses as customers to be sought after and retained. It is too easy today for a business, or other economic decision-maker, to relocate to the most economically friendly territory. In short, capital and money flows to where it is wanted. We need a tax system that attracts capital so that our economy continues to grow and provide the economic security our middle class deserves, and the social mobility our working poor need.

“The current tax code has over 5.5 billion words, countless forms and instructions, and is too complex for the average taxpayer to comprehend. As a result, businesses and individuals face huge burdens of time and money to comply with the tax code; in 2001, Americans spent 6.4 billion hours filling out tax forms for the government.” See:

About Flat Tax

Our current system is counter-productive to wealth creation in the information age. I want to change this. What our current system does to our economy is criminal. We could better the economic lot of every American if we scrap our current system and replace it with a flat tax. Here is how the system would work:

• Your income – your exemption = your taxable income
• Your taxable income x tax rate of 10%

The exemptions will vary depending on your filing status: (these are approximate)

• Married filing jointly with 2 children - $36,000
• Single - $18,000
• Single HH - $27,000

Some modifications that would be debated for inclusion would be increases in the exemptions for dependent children.

The Flat Tax, and there are many variations, would simplify our tax code. This would make America a haven for wealth creation, and empower the individual or business to make more of the economic decisions that are personal to them. The information age offers us the opportunity to empower individuals, create wealth and economic security. A Flat Tax is the most conducive way to harness the energy of America’s economy to realize these results.