America spends almost twice as much on tax loopholes as we do on defense. These loopholes are designed to benefit special interest groups. We can no longer afford them.
Let's eliminate all tax loopholes, saving $1.1 trillion a year. Let's apply most of this money to reduce our deficit. The remainder should be used to lower tax rates as follows:
Income Marginal rate
$0 to 50,000 10%
50,000 to 100,000 15%
100,000 to 200,000 20%
200,000 to 400,000 25%
400,000 to 800,000 30%
800,000 to 1,600,000 35%
1,600,000 and more 40%
This proposal is a pure progressive income tax. It taxes people based on their ability to pay. It taxes all types of income the same way.