Replace the federal income tax code with a simple flat tax!
The US federal income tax code is convoluted, confusing, and dysfunctional. It is riddled with various tax rates, loopholes, and exemptions that are unfair, inequitable, difficult to enforce, and hard to understand.
It should be completely replaced with a flat tax with a single rate and no exemptions. Investment income and the value of employee benefits should be treated the same as ordinary employment income. This would yield extraordinary benefits:
- Fair: people who earn more pay proportionally more
- Enforceable: tax evasion is almost impossible
- Understandable: trivial to explain
- Budgetable: easy to correct budget imbalances by tweaking a single rate
America needs fiscal innovation today more than ever!