Coming in next in importance to me as the sixth of my ten pet issues in taxation. This may be the simplest to explain of all the issues because I don’t think there is a candidate among the 17 Republicans who wants to increase them.
However, if you ask me – and since I write this blog and you have read this far I’m going to presume you want my opinion – my preference is for a consumption-based tax like the FairTax. It creates a scenario where we have the most control over how much we pay while encouraging saving and allowing us to take home much more of our paycheck. My second choice, if I had to maintain an income-based tax scheme, would be a flat tax with a low rate and limited deductions. Sure, the tax preparer lobby would scream but they deserve to. It should not take me the better part of a weekend to compile the paperwork and prepare two tax returns, but as it stands now I have to.
As for corporate taxes, I would be amenable to a low rate of perhaps 10 percent. Right now our rate is more than triple that.
So let’s take a look at where candidates stand and how many of 10 points they gather. Alas, none get ten because there’s none talking about the very important step of repealing the Sixteenth Amendment.
If I am reading Rand Paul‘s “Fair and Flat Tax Plan” correctly, it has a relatively low rate for everyone but more importantly eliminates the FICA tax. Practically all working Americans would get a quick raise.
It takes the income-based tax about as far as it can go, but also has a better chance of being accepted by the public.
Total score for Paul – 9.0 of 10.
While he hasn’t really addressed what he would do as President, I’m giving Bobby Jindal high marks for two reasons. One is that, over nearly two terms as governor of Louisiana, he’s been highly resistant to increasing taxes as well as taking a meat ax to the state’s budget. Could he become the second coming of Calvin Coolidge at a federal level?
On the one hand, he was a backer of Rick Perry’s 2012 flat tax plan, but on the other hand he attempted (alas, unsuccessfully) to bring a version of the FairTax to Louisiana. That basically leaves a swing between 9 points and seven so I took the middle course.
Total score for Jindal – 8.0 of 10.
He’s been on record as supporting the FairTax, so Mike Huckabee is at the top of the heap. The only problem is that we don’t know the needed rate. We also don’t know what we will see with corporate tax rates, which may be because they are eliminated with the FairTax.
Unfortunately, Huckabee was criticized for his taxation record in office so I’m reticent to give him a really high score.
Total score for Huckabee – 7.5 of 10.
Combine the support of a Forbesian flat tax with the record of cutting taxes John Kasich has put together and he has a relatively strong case for improving taxation. In Ohio, he proposed an idea to eliminate income taxes for business owners, but make up the revenue through a higher corporate tax, additional sin taxes, and a sales tax increase. Although Art Laffer liked Kasich’s idea, I see it as a sort of Frankenstein hybrid of both income and sales taxes when we need to eliminate one in favor of the other.
Total score for Kasich – 6.0 of 10.
Ben Carson is looking for a tax system which is “fairer, simpler, and more equitable” with a call for “wholesale tax reform.” His idea is loosely based on Biblical tithing, which is generally considered a 10 percent tax; however, he conceded that the rate may have to start higher and work down over time to stay revenue-neutral. He’s also alluded to reducing the corporate tax rate, although it may not drop to 10% either.
The idea of eliminating the progressive tax has merit, though. It just may prove politically difficult to weather all the harpies who think their tax breaks are too important to eliminate – that should be a circus worth watching. The next step for Carson is learning that revenue-neutral is not necessarily what we need because government is not God.
Total score for Carson – 5.5 of 10.
“I will abolish the IRS,” says Ted Cruz. At one point, he was going to do it with the FairTax but more recently he’s lowered his sights to a flat tax with a few popular deductions, such as charitable contributions and the mortgage interest deduction. We don’t know just what rate Cruz is proposing for individuals, but he is on record that a 15% corporate tax rate would be acceptable.
I’m a little disappointed that he backed away from the FairTax for political expedience, for true leadership would bring people around to the merits of the issue.
Total score for Cruz – 5.5 of 10.
More or less, the one platform plank that Jim Gilmore has shared so far is the Growth Code, a plan to reduce individual taxes to three brackets of 10 to 25 percent while eliminating taxes on capital gains and other investment income. He would also reduce corporate taxes to 15%. It’s a good start, but I would like to see an end to progressive taxes altogether.
Total score for Gilmore – 5.0 of 10.
Much like others in this portion of this summary, Marco Rubio has a simpler two-bracket system he first unveiled last year with Senator Mike Lee of Utah. Since then the brackets have been firmed at 15 and 25 percent, with a 25% corporate tax. The rates fall between Gilmore’s and Perry’s, so Rubio’s score will, too.
Total score for Rubio – 4.9 of 10.
Rick Perry hasn’t revised his 2012 tax plan yet. It was a plan that gave people the option to pay a 20% flat tax on a specific year’s return or stay with the old system, which would eventually be phased out. He would also reduce corporate taxes to 20% as well.
Although the plan was endorsed by Bobby Jindal at the time, Bobby moved on in the correct direction. Until I find out otherwise, I have to assume this is the Perry plan and it’s just average.
Total score for Perry – 4.8 of 10.
I’ve been waiting for Rick Santorum to reveal his economic plan for weeks. Supposedly it will be reflective of the one from his 2012 campaign, which is fairly similar to those other hopefuls in the 4-to-5 point range. While rates may change, though, I don’t think the complexity goes away. So we work back to square one.
Total score for Santorum – 4.6 of 10.
On his website, Chris Christie keeps it simple, calling for “creating a flatter, fairer, and simpler individual income tax system and keep returns simpler by reducing deductions and giveaways.” He also advocates for a 25% corporate tax rate, which is an improvement to about average among industrialized nations.
Listen, anything to help can be considered a victory but those from this point down the candidates either just tinker around the edges or even make things worse.
Total score for Christie – 4.5 of 10.
He cut taxes in Wisconsin, but Scott Walker only wants to turn the clock back to the 1980s, expressing an interest in reviving the tax reforms Ronald Reagan put in place. This is all well and good, but to be honest we aren’t all that far off where Reagan was in comparison to where we were when he took over for Jimmy Carter. So it’s not all that impressive to me in a crowded field.
Total score for Walker – 4.2 of 10.
In his announcement speech, Jeb Bush alluded to creating “a vastly simpler system” with fewer rates. But some complain that Bush was no longer willing to participate in a “grand bargain” to reduce the deficit by taking a small tax increase for supposed cuts. (If only his dad had ignored that siren song, Hillary Rodham would be an activist lawyer for some far left-wing group and Bill Clinton would be another in a long line of Democratic presidential losers free to cat around at will.)
At any rate, his vagueness on the subject bothers me so he doesn’t score all that well.
Total score for Bush – 4.0 of 10.
Lindsey Graham is all over the map. He’s been for a flat tax, which would qualify for the “simpler” scheme he seeks if not the “fairer” that leftist critics who love the current super-progressive system don’t want. Lindsey also advocates for lower corporate tax rates.
But he falls victim to the same mentality plaguing Jeb Bush, thinking Democrats would actually cut spending if he raised taxes – even, as he clains, it would only be certain deductions. That’s just the start of hard-working Americans being rolled anew.
Total score for Graham – 3.5 of 10.
I’m looking forward to how Donald Trump puts H&R Block out of business. Until then, I can’t give him a good score.
Total score for Trump – 2.0 of 10.
George Pataki favors scrapping the tax code, but who among this group doesn’t? Described as a governor who started out as a serious fiscal conservative, he devolved into just another big spender by the end. What worries me, though, is that he’s considering raising corporate tax rates to pay for infrastructure. That’s a guaranteed job killer.
Total score for Pataki – 1.0 of 10.
Total score for Fiorina – 0.5 of 10.
Postscript 9/26: Since Fiorina has since advocated for a simpler system that reduces revenue, I’m adding 1.5 points to her score. She should at least match Trump here.
Next on the docket, for eleven valuable points, is immigration. That may provide some sharp differences.