Fundamental Tax Reform
• enact a five-year tax cut of at least $2 trillion; the tax cut bill should
• repeal the Bush and Clinton tax increases of 1990 and 1993, thus returning to two income tax rates, 15 and 28 percent; • abolish the capital gains and estate taxes; • create a $25,000 per household tax-free universal savings account; and • index the income tax brackets for real income growth so that tax liabilities do not rise faster than Americans' incomes; • not allow states to unfairly tax the Internet; • end the withholding tax; • send an annual tax disclosure form to all taxpayers; • require a two-thirds supermajority vote to raise taxes; • enact an alternative maximum tax for individuals and businesses; the MAXTAX should be set at 25 percent of gross income and replace the filer's income and payroll taxes; • replace the income tax with a national sales tax and close down the Internal Revenue Service; and • refund taxes to Americans if tax revenue grows faster than personal income.
America's tax system reduces freedom and economic growth. Federal taxes are far too high. The Tax Foundation reports that median-income families now forfeit 38 percent of their earnings to federal, state, and local taxes. This is the highest level of taxation since the end of World War II and the highest peacetime tax burden in U.S. history. In the six years that Republicans have controlled Congress, the federal tax burden has risen