Fred Thompson's Presidential campaign has been struggling, in part because of a sense that he lacks passion and an agenda. But late last week he unveiled a tax reform that is more ambitious than anything we've seen so far from the rest of the GOP field.
Mr. Thompson wants to abolish the death tax and the Alternative Minimum Tax and cut the corporate income tax rate to 27% from 35%. But his really big idea is a voluntary flat tax that would give every American the option of ditching the current code in favor of filing a simple tax return with two tax rates of 10% and 25%.
Mr. Thompson is getting aboard what has become a global bandwagon, with more than 20 nations having adopted some form of flat tax. Most--especially in Eastern Europe--have seen their economies grow and revenues increase as they've adopted low tax rates of between 13% and 25% with few exemptions.
I love this idea. The exact level of taxation (10%, 25% or maybe additional steps in between) is irrelevant, because that can easily be adjusted any time. But the principle of the thing is wonderful, and fully in keeping with the idea that the U.S. government is "Of the People, By the People and For the People", by making your taxes only one page, just a few lines and can be completed in just a few minutes.
Right now, our Government is "Of the bureaucrats, By the lawyers and For the tax accountants"