Ms Fox writes:
House Budget Chairman Paul Ryan tackles complicated budgets, plans to
release a house budget proposal by April, and is optimistic his party will
find a consensus on tax reform before the tax code "blows up" in 2013.
... Ryan says he's happy to turn over his personal taxes to an accountant
in order to spend the upcoming months on Capitol Hill concentrating on a
comprehensive tax reform plan for the rest of the country.
2-4-8 Response: Ryan Tax Reform
I am really taken back by the fact that Rep. Ryan feels
the need to use an accountant for his tax return. He says, â€œI want to make
sure I do not mess it upâ€ and that says a mouthful about the need for tax
At least when it comes to specific tax reforms he
admits there is not, â€œtotal consensus on the specifics â€¦ you got some guys
who are the fair tax guys, you got the flat tax guys, you have the
in-between guys.â€ He also claims to reject those who caution, â€œdon't take
risks, don't be boldâ€ because he thinks, â€œpeople are sick of that and
cynicalâ€ As long as he keeps an open mind, and can put aside the more
divisive spending issues, there is hope for the 2-4-8 Tax Blend â€“ the
boldest and fairest plan of all. The public deserves to know what Mr. Ryan
thinks about it.
The 2-4-8 Tax Blend broadens the tax base by taxing net wealth at 2% (above
a $15,000 exemption), retail sales at 4% and income at 8%. It would yield
$2.6 trillion â€“ ($400 billion more than FY 2011 federal revenue). The tax
blend is progressive even though rich and poor would pay the same tax rate.
Even the â€œfair and balancedâ€ Bill Oâ€™Reilly (a/k/a the Factor) supports a
national sales tax (of 3%) as a necessary component of tax reform. The
concurrent elimination of payroll, capital gains, estate and gift taxes; and
a significant reduction of the corporate income tax rate to 8%, should
guarantee near universal support from social liberals and business
conservatives alike. The winners and losers (if there be any) do not follow
any traditional political spectrum.
Please think outside the box before you react. Try to contrast a 30% income
tax with an 8% income tax joined with a 2% wealth tax for each of the next
11 years. The latter combined income-wealth tax would permit an individual
to save and keep 22% more salary each year (conservatively assuming the 2%
wealth tax was offset by 4% investment interest). Now thatâ€™s fairness and
real economic mobility!
Corporations would feel less of a need to influence politicians once tax
incentives are off the table. How would an 8% corporate income tax affect
jobs and the economy? Those answers are better left to your talents and
dreams for a brighter future.
Eugene Patrick Devany, JD. MPA