The GOP candidates for 2012 are jumping on the flat tax band wagon and have introduced new plans to simplify the tax code and reduce taxes for many people. A simplified tax code is desired by many citizens but it also eliminates many loopholes and tax deductions. A new tax code would also require that a number of tax attorneys and accountants learn the new system.
Herman Caine introduced his 9-9-9 plan that received serious criticism because when the numbers were crunched it showed that middle class families would actually pay more in federal taxes. There a number of issues about Caine’s tax plan that has not been clarified.
Rick Perry announced his flat tax plan just yesterday which he calls “Cut, Balance and Grow.” Under this plan taxpayers have the option of deciding whether they want to pay for a flat tax of 20 percent or if they want to pay their current rate. This would actually reduce corporate tax rates and increase taxes paid by the middle class and lower income individuals. Some would argue that giving people the option of the flat tax or current tax code makes the system more complicated.
A tax lawyer can attest to the fact that the tax code is complicated enough without developing another one. A simpler tax code would make it easier to fill out your tax forms, but the current tax code is so complicated because various individuals and businesses have lobbied to have their interest included in the system. The laws are often hard to interpret without the help of a tax attorney and trying to simplify my not be as easy as the candidates think.
