The GOP – well, at least one Congressman, Rep. Devin Nunes (R-CA) – is proposing to overhaul our onerous tax structure with a plan that actually ain’t half bad. Excerpt:
“We’re trying to fundamentally change the code,” Nunes told host Stuart Varney. “We’re getting rid of the income tax. We’re doing something that hasn’t been done in 100 years.”
“We’re moving to a consumption system — to a cash flow system,” Nunes said. He explained what that would look like in practice: “You take your income minus your expenses, and whatever’s left over, you pay a tax on that.”
He added that “this is a very simple system, yet it’s a dramatic departure from the confusing tax code that we have now.”
Nunes argued that the changes would increase economic growth and bring jobs back to America so we can be “the most transparent, business-friendly nation state in the world.”
He said that under the new system, the biggest winners would be wage earners and small businesses because “they will be on the same playing field as other businesses in this country.”
Speaking as one of those small businesses, I like the idea. It might not be my ideal plan, but it would be a good start. Like lots of small businesses, ours operates as an LLC, meaning the business income is in effect our personal income – so we pay personal taxes on the proceeds of our business. This bill would eliminate that distinction, simplifying the tax code for everyone and accomplishing one of the GOP’s stated goals – broadening and simplifying the tax code.
Hopefully it will result in every working adult having some skin in the game, but I doubt that will be the case. I’d like to see everyone having some skin in the game, but in today’s environment, that may be too much to hope for.