Tuesday, October 25

The Tax Debate Our Country Needs

With Chairman Mao, or uh, Obama in charge on the nation, we can expect little in the way of positive tax reform that would relieve the burden on the American population.

Enter the Republican Presidential candidates.  There are many good ideas on the table, and most of them reform the current system.  If we continue to just tinker with the current system, we will continue to get nowhere.  Herman Cain, Newt Gingrich, even Jon Huntsman, and now Rick Perry have offered attempts to change the tax system.

The Wall Street Journal has written this piece called The Flat-Tax Sweepstakes.  The column is a good read, but here are three paragraphs that make the case:
Rick Perry joined the GOP's tax reform sweepstakes on Tuesday, proposing an optional flat income tax of 20%, among other fiscal and economic reforms. We'll get to the details, but the larger story is how the drive for a flatter, simpler, more pro-growth tax code is taking center stage in the Republican Presidential contest.
Mr. Perry joins Newt Gingrich, who has proposed a 15% optional flat tax; Jon Huntsman, whose reform proposal would cut the top individual rate to 23%; and Herman Cain and his now famous 9-9-9 plan. House Republicans included a reform with a 25% top rate in their budget earlier this year. All of this ferment shows that whatever one thinks of the candidates as potential Presidents, most of them are trying to meet the political moment with reforms to address our major economic challenges.
The good news is that Mr. Perry and most of his competitors are thinking big, with proposals that will reverse the U.S. slide to high-debt, slow-growth stagnation. President Obama wants to portray the economic debate as pro-growth government spenders vs. the austerity of budget cutting. But the real debate is over whether government or the private economy is the main engine of prosperity. The flat tax puts Republicans on the side of private growth and government reform, a potent combination. Perhaps Mr. Perry and his comrades can even coax Mitt Romney to join the party.

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