The Plan

What is the Simple Tax?

Over 4 years, transitions the Personal Income Tax to a 10%* Flat-Tax and a 0% Corporate Tax. Then, after the repeal of the 16th Amendment (that allows Federal Income Taxes), the income tax converts to a 9%* National Retail Sales Tax on ALL goods and services.

(* As Determined by Congress)

There is no income tax on individual or corporate earnings, and everyone who makes a retail purchase in the United States pays the Simple Tax.

When Amendment XVI is repealed by Amendment XXVIII (Like the 21st Amendment did to the 18th Amendment), it authorizes a flat rate retail consumption tax and explicitly states that the consumption tax rate always will be the same for all people, products, and services.

Under the Simple Tax plan, Federal Insurance Contributions Act (FICA) tax[ii] continues to be withheld from personal earnings, but invests them in Personal Retirement and Health Accounts (PRHA) for retirement and health care.

Facts About The Simple Tax

  • Eliminates complicated Federal Income Taxes.
  • Creates jobs by attracting businesses and would bring back trillions of off-shore U.S. profits.
  • Would reduce consumer prices 20%-30% by reducing the cost of tax compliance, and this would offset any new income or sales tax on the Poor.
  • Reduces the size and scope of the IRS by refocusing them on collecting sales taxes from Retailers.
  • Removes power from Politicians and Lobbyists to create winners and losers & frees up capital markets.
  • Does not allow for simultaneous Income Tax and a National Sales Tax to prevent tax code manipulation.