The 7 Principles of The Simple Tax

New York City at Night

Principle 1
All taxpayers should be treated equally under the law, and everyone should have to pay some tax.

Principle 2
Corporate taxes are nothing more than a cost of doing business that companies pass on to their customers. Therefore, all consumers will benefit from reducing, or eliminating, the corporate tax.

Principle 3
The cost of complying with the tax code is embedded in the cost of every product and service Americans buy. Therefore, all consumers will benefit from reducing, or eliminating, this tax complexity.

Principle 4
Major changes to the tax code require a transition strategy that enables people to prepare for the change.

Principle 5
A national retail sales tax is the superior form of taxation. It has the broadest base, is the least expensive to collect and most difficult to avoid, is the most transparent, is the least intrusive into our lives, and it taxes the underground economy.

Principle 6
We should never have both national income and retail sales taxes at the same time, so we need to repeal the 16th Amendment before we authorize a retail sales tax.

Principle 7
Tax simplification must be part of an integrated economic plan that also addresses fiscal, regulatory, and monetary policy.

The Simple Tax does not allow for simultaneous Income Tax and a National Sales Tax to prevent tax code manipulation.