So about a week or two ago, Rand Paul, Senator of Kentucky
announced his tax plan as he is running for President. Here are some of
the details on it to help you decide if he is worth your vote.
His Tax plan: Rand Paul's tax plan is a flat tax.
As such, he will implement a 14.5% flat tax on everyone (and for families
it will still be the same rate but they must be making a combined income of
$50,000 a year to qualify for the unified rate). Business will also have
the same rate as individuals, but will be all encompassing (so investments and
other forms of income are included) but will maintain the usual
deductions.
This means however, that the payroll tax
which funds Social Security and Medicare will vanish as we as individuals will
only pay one tax instead of several as the system is set up now. However,
these will instead be contributed to by a portion of the amount you pay in
taxes. In this instance, before the money reaches the treasury, a
percentage of the taxes you just paid will go toward your Social Security
account and your Medicare. So the programs themselves are safe.
According to reports, this will lead to a
loss of $1 trillion dollars in revenue for the federal government over ten
years, but will be offset by cuts to government and it being streamlined.
This plan also will result in an increase in GDP (gross domestic product)
by 10% in the same ten year time frame. This means that business will
expand and more jobs with 1.4 million new jobs estimated to be created as a result
of this tax plan.
Conclusion: And there you have it. The
bare bones tax plan of Rand Paul. Flat taxes are easier to pay as all you
do is calculate the total income you made that year and take 14.5% out to pay
the government. You do not need a single accountant for this math can be
done by yourself in at minimum ten minutes. Business wise, it makes the
country very competitive with respect to taxes and thus makes the country an
attractive place for foreign businesses to move to. So overall, simpler
taxes, and better business climate make this plan a winner.
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