Fundamental Tax Reform

The overly complicated U.S. tax code creates an unnecessary burden upon all Americans, with an annual compliance cost estimated to be $365 billion. The 9 million plus word code is complex; unfair; inhibits saving, investment, and job creation; and imposes a heavy burden on families. At the same time, the tax code distorts investment decisions and reduces economic growth. The code is so complex because of the deductions, credits, and other preferences added to the tax code by special interest lobbyists. Because of these loopholes, taxpayers with similar incomes can pay vastly different amounts in taxes. This uneven treatment of taxpayers is fundamentally unfair and is at odds with the American value of equality under the law. The tax code must be replaced with a new code that is simple, low, flat, fair, and honest in order to promote economic growth while at the same time removing disparities in the tax code.