DICK ARMEY: FLAT TAX A BOON FOR ECONOMY A LOSS FOR BIG GOVERNMENT
http://www.usatoday.com/news/opinion/editorials/story/2011-10-25/Dick-Armey-flat-tax/50917466/1
A flat tax will mark a significant victory for the American people over the iron triangle of lobbyists, special interests and politicians in Washington.
The current tax code is a byzantine jumble defined by loopholes and special interest carve-outs. It throws taxpayers into a 60,000-page mire of dead weight, red tape, inefficiency, loss, cost, frustration and fear of prosecution. While the average American taxpayer spends 26.5 hours preparing and sending in taxes, companies and wealthy people hire teams of accountants and tax attorneys to game the system.
Under a flat tax, individuals would have the option to file their taxes in just five minutes on a form the size of a postcard. Small businesses could concentrate on expanding their business rather than jumping through hoops in the tax code.
The simpler system would end double taxation on savings to help boost job growth. It would rationalize the tax code, and the billions saved in compliance costs and man hours would be a major stimulant to the economy. In short, the flat tax is a private-sector driven boost to the economy, as opposed to trillions of dollars wasted in failed debt stimulus.
Furthermore, all serious flat-tax proposals are optional. If you want to waste your weekends looking at spreadsheets and itemizing, or pay a tax specialist to do it for you, that’s your choice. The only thing flat-tax opponents and lobbyists fear more than giving American taxpayers a choice is losing the unfair advantage the current systems gives them.
The purpose of the tax code is to raise revenue. Anything beyond raising revenue is a corruption of the tax code because social engineering gives the government the authority to pick winners and losers in society. Under the flat tax, the tax code will treat all citizens the same.
The flat tax is gaining traction in the presidential race because for the first time, we have a citizens’ movement focusing on fiscal responsibility. And the momentum for a flat tax is growing on Capitol Hill as Sen. Jim DeMint, R-S.C., and Rep. Mike Pence, R-Ind., are in the final stages of crafting companion legislation to be introduced in Congress.
I have long believed that we will finally get a flat tax when America beats Washington, and I think we are winning.
Former House majority leader Dick Armey is chairman of FreedomWorks, a group that advocates lower taxes and smaller government.
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