The essential idea is to eliminate all loopholes, including mortgage deductions, and impose a single tax rate to all people earning income, regardless of the type of income. There is a large standard deductible per dependent in a household. As a consequence, low-income families will pay no taxes, middle class a reasonable low effective rate, and the rich nothing outrageous. The critical part of this proposal is that the rate changes year to year. The Congress is required to submit a balanced budget, and the tax rate is determined based upon what they agree upon to spend. Congress can pay for items over x number of years. If spending is high, the tax rate goes up, and vice versa. The process is simple, transparent and flexibility. At election time, voters can assess actions of Congress.



