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Rand Paul on Tax Reform

 

  
 


Refundable tax credits are same as welfare transfers

Sen. Marco RUBIO: [My tax plan includes] a child tax credit increase.

Sen. Rand PAUL: He's talking about giving people money they didn't pay. It's a welfare transfer payment. Is it conservative to have $1 trillion in transfer payments--a new welfare program that's a refundable tax credit?

RUBIO: First of all, this is their money. They do pay. It is refundable, not just against the taxes they pay on their federal income tax, but also it's refundable against the payroll tax. Everyone pays payroll tax. This is their money. This is not our money. And here's what I don't understand--if you invest that money in a piece of equipment, if you invest that money in a business, you get to write it off your taxes. But if you invest it in your children, in the future of America and strengthening your family, we're not going to recognize that in our tax code? The family is the most important institution in society.

PAUL: Nevertheless, it's not very conservative, Marco.

Source: Fox Business/WSJ First Tier debate , Nov 10, 2015

Penny Plan: cut 1% across the board; balance budget in 2020

My tax plan is the only plan that is part of a balanced budget plan. The question came up earlier, where would you cut? Nobody likes to say where they would cut. I've put pencil to paper and done three budgets that actually balance. I'm also in favor of a plan called the penny plan where we'd just cut 1 percent across the board and the budget actually balances in less than five years.
Source: Fox Business/WSJ Second Tier debate , Nov 10, 2015

Flat tax 14.5% on personal income; & 14.5% value added tax

Q: You favor a flat tax of 14.5% on personal income and a 14.5% European style VAT. That is estimated to result in a $3 trillion loss in revenue over a decade. 80% of the money that this government spends is on entitlements and servicing the debt. What do you do?

PAUL: We have to look at everything across the board and all of government needs to be smaller. I have put forward three five-year plans that balance the budget over five years, including significant tax cuts. If you want a Republican that's going to keep government the same size by having revenue neutral tax and not really cutting tax, I'm not the guy. The Tax Foundation said that my plan would create millions of jobs and that mine is the most pro-growth tax plan ever presented. [My tax plan] helps the poor and the working class because my tax plan gets rid of the payroll tax. Social Security will be paid for by businesses and not by individuals, so a guy making $40,000 a year will get $2,000 more in their check every year.

Source: Fox News Sunday 2015 coverage of 2016 presidential hopefuls , Aug 9, 2015

Flat tax doesn't exacerbate income inequality

Q: Under your tax plan, with a flat tax of 14.5 percent on personal income and a 14.5 percent European style VAT, a family making from $50,000 to $75,000 would get a 3% rise in income. Sounds good. But a family making more than $1 million a year would get a 13% rise in income. Doesn't your plan massively increase income inequality?

PAUL: Income inequality is due to some people working harder and selling more things. If people voluntarily buy more of your stuff, you'll have more money. And it is a fallacious notion to say that rich people get more money back in a tax cut. If you cut taxes by 10%, 10% of $1 million is more than 10% of $1,000 so obviously people who paid more in taxes will get more back.

Source: Fox News Sunday 2015 coverage of 2016 presidential hopefuls , Aug 9, 2015

EZ Tax: $700B tax cut via 17% flat tax

As President, I would promote a Fair and Flat Tax plan, known as the "EZ Tax." My tax plan would be the largest tax cut in American history ($700 billion per year), reforming individual, business, and worker taxes.

The tax reform plan will include a 17% flat tax for individuals and businesses, making it the most competitive in the world. This would bring more businesses back to America, and leave more money in the hands of hard working Americans. The tax reform plan would also provide low and middle-income workers with an exemption from the Social Security payroll tax.

The flat tax would also eliminate every form of unfair, double taxation in the United States, including the capital gains, dividend, estate, gift, and interest tax.

My EZ Tax plan encourages our businesses to be competitive in the global economy with lower rates, while also leaving more money in the hands of the hardworking middle class.

Source: 2016 presidential campaign website, RandPaul.com, "Issues" , Apr 7, 2015

Balanced budget and a simple, fair tax system

We need to return to our founding principles and stand up for the entire Bill of Rights. Our future can include a road back to prosperity--back to respect at home and abroad. It should include a balanced budget and a simple, fair tax system.

It should include a government that protects your rights and your security. It should include a stronger, better and more agile military. It's time for a new way. A new set of ideas. A new leader: One you can trust--one who works for you.

Source: Speech at 2015 Conservative Political Action Conference , Feb 26, 2015

Economic growth comes when we lower taxes for everyone

The ticket to the middle class is not higher taxes on the very businesses that must create the jobs.

Economic growth will come when we lower taxes for everyone, especially people who own businesses and create jobs.

Source: Tea Party response to 2014 State of the Union address , Jan 28, 2014

Stand firm and say NO to any MORE tax hikes!

This year, they say they will have a budget, but after just recently imposing hundreds of billions in new taxes, they now say they will include more tax hikes in their budget. We must stand firm. We must say NO to any MORE tax hikes!

Only through lower taxes, less regulation and more freedom will the economy begin to grow again. Our party is the party of growth, jobs and prosperity, and we will boldly lead on these issues.

Source: Tea Party Response to 2013 State of the Union Address , Feb 12, 2013

Opposed to increasing taxes during recession

[Speaking at a restaurant in Lexington, Kentucky 2008]: "We're at 10 percent unemployment not counting those who've given up looking for work. In the midst of this recession, the president has said we need more regulation and more taxes. That is exactly the wrong thing to do in a recession."

I will not vote for a tax increase. I will not vote for earmarks. I will not vote for an unbalanced budget.

Source: The Tea Party Goes to Washington, by Rand Paul, p. 60&246 , Feb 22, 2011

Joe Taxpayer gets stuck with the bill for budget deficit

While completing my medical training, I founded and became chairman of the North Carolina Taxpayers Union, a watchdog group that scored politicians according to their tax and spending records. In a 1991 press release I stated,

Taxpayers are sick and tired of being the scapegoat for irresponsible spending by politicians. As the budget deficit mushroom, it's Joe Taxpayer who gets stuck with the bill. Politicians campaign "Read my lips, no new taxes," but reading between lips, we find that the politicians really meant "Yes, new taxes, many new taxes.""

My distaste for the big government promoted by both parties--"read my lips, no new taxes" was George H.W. Bush's broken promise--has never wavered.

Source: The Tea Party Goes to Washington, by Rand Paul, p. 40 , Feb 22, 2011

Balanced budget amendment to pay to extend $4T Bush tax cuts

Q: You have been consistent that you wanted to extend all the Bush tax cuts. But that would add $4 trillion to the deficit. The first issue you mentioned in this debate was the national debt. How are you going to pay for a $4 trillion loss of revenue fro the tax cuts?

PAUL: First of all, you look at whose money is it. It's the people's money who earned the money. And we give up some to pay taxes. So I'm not seeing it as a cost to government. But I will immediately introduce bills to reduce spending so I think we should offset it.

Q: There's no way you're going to get $4 trillion by spending cuts.

PAUL: I will introduce legislation that will balance the budget. We will have a balanced budget amendment introduced if I'm elected. But about the Bush tax cuts--businesses have made calculations on these for 5 or 10 years. Business needs predictability. If you take away these Bush tax cuts, if you allow Obama to have the largest tax increase in our history, it will be a disaster for the economy.

Source: Fox News Sunday, 2010 Kentucky Senate debate , Oct 3, 2010

Lower taxes encourage spending, saving, and investing

Lowering taxes gives working men and women the ability to take control of their own lives. It allows business owners to invest in their companies, pay their employees, and create new jobs. Lower taxes encourages spending, saving, and investing--all necessary for a healthy economy.
Source: 2010 Senate campaign website, www.randpaul2010.com, "Issues" , Jul 19, 2010

Taxpayer Protection Pledge: no new taxes.

Paul signed Americans for Tax Reform "Taxpayer Protection Pledge"

Politicians often run for office saying they won't raise taxes, but then quickly turn their backs on the taxpayer. The idea of the Pledge is simple enough: Make them put their no-new-taxes rhetoric in writing.

In the Taxpayer Protection Pledge, candidates and incumbents solemnly bind themselves to oppose any and all tax increases. While ATR has the role of promoting and monitoring the Pledge, the Taxpayer Protection Pledge is actually made to a candidate's constituents, who are entitled to know where candidates stand before sending them to the capitol. Since the Pledge is a prerequisite for many voters, it is considered binding as long as an individual holds the office for which he or she signed the Pledge.

Since its rollout with the endorsement of President Reagan in 1986, the pledge has become de rigeur for Republicans seeking office, and is a necessity for Democrats running in Republican districts.

Source: Americans for Tax Reform "Taxpayer Protection Pledge" 10-ATR on Aug 12, 2010

Supports flat-rate federal tax; opposes increased tax rates.

Paul supports the CC survey questions on flat tax

The Christian Coalition voter guide [is] one of the most powerful tools Christians have ever had to impact our society during elections. This simple tool has helped educate tens of millions of citizens across this nation as to where candidates for public office stand on key faith and family issues.

Source: Christian Coalition Survey 10-CC-q11a on Aug 11, 2010

Adopt a single-rate tax system.

Paul signed the Contract From America

The Contract from America, clause 4. Enact Fundamental Tax Reform:

Adopt a simple and fair single-rate tax system by scrapping the internal revenue code and replacing it with one that is no longer than 4,543 words--the length of the original Constitution.

Source: The Contract From America 10-CFA04 on Jul 8, 2010

Repeal tax hikes in capital gains and death tax.

Paul signed the Contract From America

The Contract from America, clause 10. Stop the Tax Hikes:

Permanently repeal all tax hikes, including those to the income, capital gains, and death taxes, currently scheduled to begin in 2011.

Source: The Contract From America 10-CFA10 on Jul 8, 2010

Supports the Taxpayer Protection Pledge.

Paul signed the Taxpayer Protection Pledge against raising taxes

[The ATR, Americans for Tax Reform, run by conservative lobbyist Grover Norquist, ask legislators to sign the Taxpayer Protection Pledge in each election cycle. Their self-description:]

In the Taxpayer Protection Pledge, candidates and incumbents solemnly bind themselves to oppose any and all tax increases. Since its rollout in 1986, the pledge has become de rigeur for Republicans seeking office, and is a necessity for Democrats running in Republican districts. Today the Taxpayer Protection Pledge is offered to every candidate for state office and to all incumbents. More than 1,100 state officeholders, from state representative to governor, have signed the Pledge.

The Taxpayer Protection Pledge: "I pledge to the taxpayers of my district and to the American people that I will: ONE, oppose any and all efforts to increase the marginal income tax rate for individuals and business; and TWO, oppose any net reduction or elimination of deductions and credits, unless matched dollar for dollar by further reducing tax rates."

Opponents' Opinion (from wikipedia.com):In Nov. 2011, Sen. Harry Reid (D-NV) claimed that Congressional Republicans "are being led like puppets by Grover Norquist. They're giving speeches that we should compromise on our deficit, but never do they compromise on Grover Norquist. He is their leader." Since Norquist's pledge binds signatories to opposing deficit reduction agreements that include any element of increased tax revenue, some Republican deficit hawks now retired from office have stated that Norquist has become an obstacle to deficit reduction. Former Republican Senator Alan Simpson, co-chairman of the National Commission on Fiscal Responsibility and Reform, has been particularly critical, describing Norquist's position as "no taxes, under any situation, even if your country goes to hell."

Source: Taxpayer Protection Pledge 12-ATR on Jan 1, 2012

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