Mr. Trump & The FLAT TAX: A Great Leadoff Hitter for the Trump Administration
By Dante Vitoria December 21, 2016
When the topic of taxes comes up, everyone has 10 different “opinions”.
As we say in Brooklyn… “Opinions are like assholes, everyone has one, and they usually stink.”
Be that as it may, and at the risk of falling into the above mentioned category, I have an idea on taxes; city, state AND federal taxes.
I, like Steve Forbes and MANY more recent devotees such as Ted Cruz, Rand Paul, Ben Carson and even Rick Santorum. Every one of them had touched on a flat tax system in this past Republican presidential primary. Ranging from 10% to 20% rates, they ALL championed the system in various degrees of fervor.
The popularity of a flat tax is growing, and rightly so. Look around…all around.
If you go to the gas pump, you pay the same price per gallon (taxes included) as the next person. My Mercedes, your (fill in the blank) …we ALL pay the same rate of taxes per gallon. Go to the department store. You buy a sweater, I buy the same one (and by the way IF you buy the same sweater as I do, you are a well-dressed fellow). Anyway, the cashier does not ask what each of us earns to determine the tax rate we pay for the sweater.
EVERYTHING we buy has the same tax attached to it (YES rates do vary from city to city, state to state, but follow the concept.
Why is our income tax different?
Actually, it goes directly against all our country’s foundation and the principles that it was founded on.
Hard work, earning a living, getting ahead…The American Dream, right? The bigger house, better car, etc.
So why do we penalize those who are more successful, by “rewarding” them with a higher tax rate?
Over the past few decades, there were tax reform bills that are passed, which have created numerous “loopholes”. These “loopholes” have been the gateway to various degrees of confusion, fraud and MORE IMPORTANTLY massive amounts of taxpayer dollars spent on the malfunctioning federal government agency…the Internal Revenue Service. FYI, the budget for the IRS in 2015 was $12 BILLION…PLUS $165 MILLION for “improvements”…believe it or not. Thanks Mr. Obama.
So, why a flat tax…really?
Aside from the fairness factor, look at what could be ELIMINATED.
Employers could issue a “one pager” to each employee:
“Mr. X made a GROSS amount of “Y” Dollars this fiscal year”. A copy would be issued to him, the Human Resources department and the IRS. All the IRS would have to do is a simple reconciliation (done by a basic piece of computer software) and BINGO! No audits, no tax evasion, no tax avoidance…and VOILA NO $12 BILLION budget!
This would free up that $12 Billion to be better utilized in other areas and make the country leaner, and heaven forbid, more efficient!
Sounds simple, right?
Well, let’s look at more ancillary benefits of the flat tax:
More disposable income for consumers to put back into the economy.
More business would be at the least a stable rate of sustainability (not to mention the GROWTH POTENTIAL).
Stimulation of small and mid-sized businesses and the rebirth of the entrepreneur (who at the present moment is reduced to begging those FRAUDS on Shark Tank…you just KNEW I was going to take a shot at someone, right?)
As far back as the Reagan administration (ah…the GOOD OL’ DAYS) chief economist Murray L. Weidenbaum (a graduate of Erasmus Hall High School, in Brooklyn I may add) proclaimed: “Claims of growth benefits of a “flat tax” reflect an intuitive national understanding that lower tax rates afford greater economic growth.”
A flat tax system represents “simplicity”, which in turn would create stability in our nation’s economy.
At this juncture in time as a nation, can either party disagree with that? Most likely, Mr. Trump would meet stringent opposition from the “naysayers” if he were to propose a “flat tax” system…which is exactly why he should do it, and HOPEFULLY will!
President-elect Trump has been a successful businessman, and on Friday January 20, 2017, he will be named CEO of the greatest and most powerful company in the world…The United States of America.
Can I be the first to coin the phrase: “In Trump We Trust”?
Dante Vitoria is the Founder and CEO of The Vitoria Group in New York City.