Topics in the News: Flat Tax
Fred Thompson on Tax Reform
: Oct 9, 2007
Phase out the AMT; lower taxes grow the economy
Q: The Alternative Minimum Tax is about to hit 20 million people. It was meant to make sure rich people paid taxes but now, it's moving down because of inflation. How do you deal with the lost revenue if the AMT is reduced?A: Well, in the first place,
I don't buy the concept that any reduction in taxes is lost revenue to the government. The taxpayers haven't lost it. It's in their pocket. We shouldn't confuse the wealth of government with the wealth of nations. As you pointed out, the AMT was designed
to target the rich guy. And when the Democrats start targeting the rich guy, if you're a middle-class guy you ought to run because you're going to get hit. We're going to have to look at this as part of a total picture. Generally speaking, lower tax
rates grow the economy. It's been proven in the '20s, it was proven during the Kennedy administration, proven during the Reagan administration and again during this administration. I would apply that same principle to the AMT. It ought to be phased out.
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Source: 2007 Republican debate in Dearborn, Michigan
Mike Huckabee on Tax Reform
: Aug 26, 2007
Attacked as tax-and-spend by several anti-tax groups
The conservative Club for Growth ran ads attacking you as a tax-and-spender during your years as governor of Arkansas. One ad said, "Higher sales taxes. Gas taxes. Grocery taxes. Even higher taxes on nursing home beds." The fact is, you did sign those
tax increases. You did allow a 17% sales tax increase.A: I have to be a little flattered that the Club for Growth targeted me with $100,000 of ads. But there are nuances of a state government--I'm quite proud of having navigated a ship through trouble
waters in Arkansas.
Q: It's not just the Club for Growth. The Cato Institute gave you a "D" on taxes for your 10 years as governor. Americans for Tax Reform said that state spending during your first 8 years as governor increased by 65%.
A:
But if you look at our state spending, budgeting during my time as governor increased about 0.5% a year. When you look at the things that I actually had control [over, you would ignore] these wild accusations that I'm a tax and spender.
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Source: Fox News Sunday: 2007 "Choosing the President" interviews
Rudy Giuliani on Tax Reform
: Aug 5, 2007
Too complex to get to FairTax; focus on reducing taxes
Q: The FairTax would eliminate the income tax, estate tax, payroll tax & capital gains tax and replace it with a 23% sales tax. Do you support it?A: I would say the most sensible thing to do is to simplify the tax code, reduce taxes, keep taxes low.
I think the flat tax and the FairTax are both very intriguing. And if we were starting off at the very beginning with taxation, the first argument I would make is let's not have any taxes. The second argument I would make is the
FairTax or the flat tax would probably be a better way to go.
Q: But you're not for the FairTax now, correct?
A: It would be too complex to get there. And somebody would have to show me how we're going to make that transition. And, also, the thought
that there wouldn't be an IRS with the FairTax--well, who is going to administer the sales tax? And who's going to administer the people that are exempt from the sales tax? And who is going to administer what items might be exempt from the sales tax?
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Source: 2007 GOP Iowa Straw Poll debate
Sam Brownback on Tax Reform
: Aug 5, 2007
Supports optional flat tax in income tax; not FairTax
Q: The FairTax would eliminate the income tax, estate tax, payroll tax and capital gains tax and replace it with a 23% sales tax. Do you support it?A: I think we need to move toward an optional flat tax. I think we need to go to flat taxes.
And let me just say why. We've got a problem with the current tax code and we've tried to take it out. And every time you try to take it out, everybody comes to defend it that has something in it.
You can put an optional flat tax in the tax code and let people choose. And it will create economic growth. That's why 16 countries have already gone to a flat tax: It creates growth.
Growth is the key for us in this economy for us to get things moving forward.
Q: OK, but you're against the fair tax
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Source: 2007 GOP Iowa Straw Poll debate
John McCain on Tax Reform
: May 3, 2007
Alternative minimum tax is eating Americans alive
Q: In addition to the Bush tax cut, name a tax you'd like to cut.A: The alternative minimum tax is obviously eating Americans alive, and it's got to be repealed. Another one I think is important is a $3,000 tax credit for people to be able to
purchase health insurance. So low-income Americans will have access to health care, which is an amazing and difficult problem today. And a simpler, flatter, fair tax so that Americans don't have to spend $140 billion to prepare their tax returns.
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Source: 2007 GOP primary debate, at Reagan library, hosted by MSNBC
Mike Huckabee on Tax Reform
: May 3, 2007
Flatter, fairer, finite, family friendly overhaul: Fair Tax
Q: In addition to the Bush tax cut, name a tax you'd like to cut.A: I cut taxes 94 times as governor, but I realize tinkering with it doesn't work. I'd overhaul it. I would work for the fair tax, which meets the four criteria:
flatter, fairer, finite, family friendly. We'd get rid of the IRS. We're get rid of all capital gains, income, corporate. And we'd have a consumption tax. The fair tax proposal, I believe, offers the best opportunity for all levels of Americans.
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Source: 2007 GOP primary debate, at Reagan library, hosted by MSNBC
Sam Brownback on Tax Reform
: May 3, 2007
Alternative flat tax to replace entire tax code system
Q: In addition to the Bush tax cut, name a tax you'd like to cut.A: I'd put forward an alternative flat tax and allow people to choose between the current tax code system, which doesn't work, which
I'll be taking behind the barn and killing with a dull ax, and an alternate flat tax and let them choose.
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Source: 2007 GOP primary debate, at Reagan library, hosted by MSNBC
Ron Paul on Tax Reform
: May 3, 2007
Immediately work to phase out the IRS
Q: If you were president, would you work to phase out the IRS?Immediately. You can only do that if you change our ideas about what the role of government ought to be. If you think that government has to take care of us, from cradle to grave, & if you
think our government should police the world and spend hundreds of billions of dollars on a foreign policy that we cannot manage, you can't get rid of the IRS. But if you want to lower taxes and stop causing all the inflation, you have to change policy.
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Source: 2007 GOP primary debate, at Reagan library, hosted by MSNBC
Ron Paul on Tax Reform
: May 3, 2007
Get rid of the inflation tax with sound money
Q: Name a tax you'd like to cut.A: I would get rid of the inflation tax. It's a tax that nobody talks about. We live way beyond our means. We print money for it. The value of the money goes down, and poor people pay higher prices. That is a tax.
That's a transfer of wealth from the poor and the middle class to Wall Street. Wall Street's doing quite well, but the inflation tax is eating away at the middle class of this country. We need to get rid of the inflation tax with sound money.
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Source: 2007 GOP primary debate, at Reagan library, hosted by MSNBC
Tommy Thompson on Tax Reform
: May 3, 2007
Replace alternative minimum tax with flat tax
Q: In addition to the Bush tax cut, name a tax you'd like to cut.A: I was governor of Wisconsin and vetoed 1,900 items, and reduced taxes $16.4 billion. I think the biggest problem we've got in
America is the alternative minimum tax that's bringing more middle-income people in. Let's put it in -- let's have the people have a flat tax and have the option of paying whichever is least.
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Source: 2007 GOP primary debate, at Reagan library, hosted by MSNBC
Mike Huckabee on Tax Reform
: Jan 4, 2007
Supports national flat tax to keep up with globalization
During the 2000 presidential race, Steve Forbes advocated simplification of the tax code and the implementation of a flat tax. While far from perfect, moving toward a tax that is both flatter and fairer is a goal we should adopt. One of the arguments
for a flat tax is to address a world economy that has radically changed in the last decade. Capital, and even labor, are fluid & mobile. A tax structure that is more predictable, consistent, flatter, and fairer not only represents greater accountability
in government but may well be a key element of economic survival as we continue to play on a global stage. Governments unwilling to respond with lower rates and broader tax bases are tempting fate and could continue to see erosion of investment & jobs.
Some argue that a flat tax is especially oppressive to those at the bottom of the economy because they currently pay little of their income to taxes. Making sure that a tax system is fair means we should not ignore the needs of the poor.
Click for Mike Huckabee on other issues.
Source: From Hope to Higher Ground, by Mike Huckabee, p.109-110
Mike Huckabee on Tax Reform
: Jan 4, 2007
Eliminated AR marriage penalty & capital gains on home sales
During my tenure as governor, we: - Eliminated the income tax for families below the poverty line.
- Increased the standard deductions.
- Eliminated the marriage penalty.
- Eliminated bracket creep by indexing the income taxes to inflation,
thereby preventing taxpayers from moving into a higher bracket when their paychecks increase due to inflations.
- Doubled the child care tax credit.
- Eliminated capital gains tax on the sale of a home.
-
Passed the first broad-based tax cut in the state's history.
- Signed a property taxpayer's bill of rights establishing a uniform notice and due process procedure allowing taxpayers to appeal valuation and assessments.
-
Provided an income tax credit for companies that provide or reimburse for training and education programs for employees.
- Cut the capital gains tax for individuals and business to encourage investment.
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Source: From Hope to Higher Ground, by Mike Huckabee, p.102-103
Mike Huckabee on Tax Reform
: Jan 9, 2001
Remove the poorest taxpayers from the tax rolls
When we cut the tax burden for Arkansas families, we eliminated 40,000 families from the tax rolls. Not the richest but the poorest were eliminated from the tax rolls.
By indexing for inflation and cutting out the marriage penalty, we gave Arkansans the best boost they have ever had.
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Source: State of the State address to the Arkansas legislature
John McCain on Tax Reform
: Feb 27, 2000
“Balanced approach”, and starts a flat tax system
McCain’s pitch is that his tax cut plan is modest enough in size that it leaves plenty of money from the surplus tax revenues to deal with other needs. By expanding the 15% bracket to cover millions of additional taxpayers, he
says, his plan amounts to a start on creating a system of flatter tax rates.“I want a balanced approach,” McCain says. “I put a whole lot of money into Social Security, Medicaid, and paying down the debt [and less] money into tax cuts.”
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Source: New York Times, p. 22
John McCain on Tax Reform
: Dec 7, 1999
1st step to simplify taxes: close special interest loopholes
FORBES [to McCain]: Cutting the capital gains tax is key to a prosperous future. In New Hampshire you indicated support for a flat tax and I was wondering if you might put flesh on those bones and tell us what you have in mind for tax reform?
MCCAIN: I want to thank you for your efforts on behalf of a flat tax. I think we’ve got to eliminate the marriage penalty, the earnings test, raise the 15% tax bracket, put a level of $5 million on the inheritance tax. But this tax code is 44,000 pages
long. It’s an abomination. It’s a cornucopia of good deals for the special interests and it’s a nightmare for American citizens. We’ve got to get rid of the special interest loopholes that are right in this tax code. That’s the first
step in cleaning it up to reach your goal of a simplified tax system. I appreciate your efforts. But until the day arrives when we remove the influence of the special interests, we’re not going to be able to achieve your goal.
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Source: (cross-ref. from Forbes) Phoenix Arizona GOP Debate
John McCain on Tax Reform
: Oct 29, 1999
Supports flat tax; stop complexity by special interests
Q: Do you favor a flat tax? A: Sure, I’m for a flat tax. I’m for a tax system where average Americans can fill out their tax return on a postcard and send it in and not have the fear of an audit. But do you know why the tax code is 44,000 pages long?
Do you know why it’s a nightmare, a chamber of horrors for average citizens and a cornucopia of good deals for the special interests? It’s because every time we pass a tax bill we add another special loophole and a special deal for the special interests.
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Source: Republican Debate at Dartmouth College
John McCain on Tax Reform
: Apr 30, 1999
Taxes should be flatter, lower, and simpler
McCain believes the vast majority of Americans pay an excessive amount of their hard-earned income and accumulated wealth in taxes -- at all levels of government. McCain [believes] that tax relief and smaller government go hand-in-hand. He is committed
to creating a better tax system, which is flatter, fairer, and only taxes income one time. It should be simple and reduce the time and money needed to prepare tax returns, from days to minutes, and from thousands of dollars to pennies.
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Source: www.mccain2000.com/ “Position Papers” 5/24/99
Newt Gingrich on Tax Reform
: Jul 2, 1998
Input of public judgement for any major tax reform
The principle of keeping the people on it all the way is my contribution to the great tax reform debate. Some intelligent and persuasive people want a flat income tax. Some other intelligent and persuasive people want to see a sales tax replace any
income tax. So my goal in the great tax reform debate is to make sure that it is carried way beyond the experts and advocates and gets a thorough airing in the minds of the voters. I want them to tell me what they think about this question.
There is a distinction between public judgment and public opinion. The latter is what people tell pollsters off the top of their heads. Public judgment, by contrast, is what develops over time when people pay
attention to something and discuss it with their friends and neighbors. It takes a long time to develop and involves a complex social interaction that is largely unplanned and unprogrammable.
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Source: Lessons Learned the Hard Way, by Newt Gingrich, p. 27