Recently, California U.S. Senate candidate Tom Del Beccaro outlined his endorsement of a national flat tax plan, which he says will restore incentives to the struggling economy. Del Beccaro, who received the endorsement of nationally renown economist Stephen Moore as well as Larry Kudlow, outlines his proposal as follows:
· Elimination of the current corporate tax system, which would be replaced with a 15.5 percent net business income tax with immediate expensing for business-related purchases and deductibility of wages and salaries.
· Replacing the current personal income tax with a flat 15.5 percent rate on wages and salaries, capital gains, dividends, interest and inheritance.
· Eliminate all federal deductions, and double the standard deductions.
· Eliminate the cap on the payroll tax
· Eliminate the estate tax, Affordable Care Act tax and all tariffs. Net business income tax would be applied to imports at the border.
· Any changes to this system would require a 3/5ths vote of both Houses of Congress.
· Six percent flat tax on all federal income subject to taxes
· Elimination of the thousands-pages tax code and replace with a simple post card for tax returns, which simply and reduce the costs of filing taxes.
“More than 22 percent of California’s children are living in poverty, the highest in the nation,” said Del Beccaro. “This is a result in a lack of jobs. The first step in addressing this issue is by creating an employment-friendly environment, which is what my flat tax proposal will do.
“The American and California economies are being held back because of the state’s policies, not the ambition of the people,” said Moore. “Tom’s flat tax proposal would jump start the economy by restoring economic incentives and lead to more jobs nationally and for California.”