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Roadmap for the 21st Century: Budget and Tax

December 5, 2016

In other words, the economic policies adopted during the Obama years produced a sustained slower rate of economic growth that fundamentally transformed America into a nation on the path to becoming a third world country.

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The Roadmap for the 21st Century Project is a collaboration of free-market experts nationwide reflecting their views on the major public policy choices facing the nation, particularly those affecting economic growth and prosperity.

This Roadmap paper, by the Working Group on Tax Reform, discusses policy alternatives aimed at restoring economic growth and prosperity through tax reform. It explains the importance of tax rates, especially marginal tax rates; contrasts flat-rate taxes and progressive taxes; discusses the multiple taxation of capital that currently takes place under the U.S. tax code; and lays to rest the claim the rich don't pay their "fair share."

Five tax reform alternatives that would serve as the foundation of a historic boom in the U.S. economy are described:

  • Ted Cruz/Rand Paul flat tax
  • Steve Forbes flat tax
  • Abolish the corporate income tax
  • Ryan/Brady plan
  • Trump plan

The paper's authors conclude:

We stand on the brink of a fiscal/investment/jobs/ economic growth renaissance through major tax reform in the United States. The Keynesian no-nothings cannot be permitted to block progress. Education of the American people is key, but as future papers in this series will explain, we cannot rely on our public schools or colleges/universities to do the job effectively. Our challenge – and opportunity – is to reach the American people through information channels, and minds, newly opened by the November election.

Author
Peter Ferrara is senior fellow for entitlement and budget policy at The Heartland Institute, and a senior fellow at the Social Security Institute.
pferrara@heartland.org
Author
Lewis K. “Lew” Uhler is founder and president of the National Tax Limitation Committee, one of the nation’s leading grass roots taxpayer lobbies.
lew.uhler@limittaxes.org @limittaxesorg