June 19, 2015 Paul Glantz, CPA

“Blow Up the Tax Code and Start Over”

Rand Paul wrote a piece in the Wall Street Journal the other day titled “Blow Up the Tax Code and Start Over”. Can his proposal for a flat 14.5% tax to personal and corporate income be the solution to our nations complex tax code?

Rand states that from 2001 to 2010, there was an average of one “fix” made to the tax code daily, for a total of over 4,400 in that same ten year span. Clearly the code has become much more complex. Rand proposal includes an elimination to all deductions with the exception of mortgage interest and charitable givings, and even goes as far as eliminating payroll taxes. Rand also proposes that the first $50,000 of income for a family of four would not be subject to tax.

The complexity of the tax code has obviously become an issue in America, but government spending needs reformation as well. Rand’s plan may be on the right track, but he doesn’t go in depth about how medicare and social security would be funded if payroll taxes were cut, he doesn’t examine the unforeseen implications of granting families of four or larger their first $50,000 tax free, and the effect it will have on population growth, poverty growth, the food supply, and our resource supply. Despite these issues, I applaud Rand for proposing a solution to a problem that has really impacted growth in America.

What are some of your thoughts?

Email me at paul@launchconsultinginc.com

 

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About the Author

Paul Glantz, CPA Paul Glantz is a Certified Public Accountant licensed in both Texas and New York. Paul has an extensive background in public accounting with a specific focus on individual, fiduciary, and business taxation. Paul currently resides in Austin, Texas.