Fair Tax, Flat Tax, and 9-9-9 oh my! The debate for tax code reform is once again picking up steam!
“I want to make the tax code so simple that even Timothy Geithner can file his taxes on time” announced Texas Governor and Republican Presidential Candidate Rick Perry in advance of the unveiling of his new economic growth plan scheduled for next week.
The remarks of course, refer to President Obama’s appointment of Geithner as US Treasury Secretary and his apparent failure to pay nearly $34,000 of payroll taxes on time.
Unlike the current tax code system which is designed to progressively tax people at a higher rate as they earn more money (at least that is how it is supposed to work unless you’re super wealthy like Warren Buffet, George Soros, or Bill Gates who’s “long term capital gains” are taxed at a much lower percentage) a flat tax applies a consistent tax rate to virtually all US citizens regardless of their income.
Details of Romney’s plan, which he is also billing as an jobs and economic growth package, have not been released but it will be interesting to see how the details compare to the current US TAX CODE, Herman Cain’s 9-9-9 plan, or even Mike Huckabee’s “Fair Tax” proposal from 2008.