Fred's Flat Tax

Time for a populist flat tax movement in the GOP, as voters confront higher federal taxes if the Dems sweep in 2008, and in Democrat Illinois increases in state and local taxes no matter what--we are stuck. Today in the Trib's "What Others Are Saying", WSJ:

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...

The two apparent Republican front runners, Rudy Giuliani and Mitt Romney, should be paying attention. Both have called for tax cuts in general but have dodged any endorsement of the flat tax--presumably because they think it is too politically risky. The politically calculating Mr. Romney has questioned whether the flat tax is "fair." Mr. Giuliani is more open to the idea, saying the flat tax "would be a lot easier. It would probably bring in a lot more revenue and it would not have some of the burdens on the economy that the massive tax code has." That's right, so why not go all the way?

Full text here. I still remember "explore the universe" former California Governor Jerry Brown's attack on the complexity of the tax code during his run for president (debating Bill Clinton at the time). He described it as paper stacking up to his neck, as I recall, and he's a tall guy. This still resonates, and comes up every campaign. John Fund in 2005:

Here at home the flat tax is still routinely ridiculed. When Mr. Forbes floated the idea in 1995, President Clinton joked that Republicans were becoming "the party of flat-earthers and flat-taxers." But he has also told friends privately that he got a real scare during the 1992 primaries when Jerry Brown championed a flat tax. Mr. Brown won applause from audiences by pointing out that under our current system the rich will always be able to hire experts to lobby for tax loopholes and avoid the higher rate traps set for them.

We are world laggards on this one. Even Back to the USSR Russia has a flat tax, which has helped grow their economy.

And right now the Democrats are the party of the rich and out of touch, effete gentry liberals-- what better time to push this common sense reform?

Figure your taxes on a postcard, an idea whose time has come. Good for Fred.

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