flat tax

$1,200 Per Family In New Taxes

On Wednesday the Associated Press reported that over 6 million uninsured people will get hit by a tax penalty as a result of Obamacare. This tax penalty works out to about an average of about $1,200 per family in 2016. Even more concerning is that this tax will hit mostly middle class households.

Obamacare is flawed legislation based on a flawed premise. Although it was well documented that the main complaint about health care was the cost and addressing the problem, the government instead got involved and created a massive federal entitlement program that is hurting those it should be helping.

Citizens all over the country have spoken out for the repeal of Obamacare by voting to include it as a main pillar of the Contract From America. Wednesday’s findings simply add more evidence to the core argument that Obamacare is financially unsustainable, does not address the main problem of private healthcare, and makes more people dependent of the government.

If we want to return to fiscal responsible governing we must repeal Obamacare and replace it with a plan that works and we can afford so our children don’t spend their whole lives paying for it.

The Contract from America

We, the citizens of the United States of America, call upon those seeking to represent us in public office to sign the Contract from America and by doing so commit to support each of its agenda items and advocate on behalf of individual liberty, limited government, and economic freedom.

  1. Protect the Constitution
  2. Reject Cap & Trade
  3. Demand a Balanced Budget
  4. Enact Fundamental Tax Reform
  5. Restore Fiscal Responsibility & Constitutionally Limited Government
  6. End Runaway Government Spending
  7. Defund, Repeal, & Replace Government-run Health Care
  8. Pass an ‘All-of-the-Above” Energy Policy
  9. Stop the Pork
  10. Stop the Tax Hikes

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Click here for the full text version.

Grassroots Activists Help Launch Historic “Contract from America”

Download a hardcopy of the official press release here.

On April 15th, hundreds of local Tea Party and limited government groups around the country will join together to announce the launch of the “Contract from America,” a grassroots legislative blueprint for 2010 and beyond. Originally proposed by Ryan Hecker, a Houston Tea Party activist and National Coordinator for the initiative’s chief organizing group Tea Party Patriots, this project is intended to present a different kind of agenda for our federal lawmakers: unlike the Contract with America introduced in the 1990s, everyday citizens proposed and voted on every plank of the Contract from America.

Grassroots activists from across the country visited the website to choose their top ten priorities from a list of 21 action items that committed Americans from all walks of life proposed. The top ten issues comprise the final Contract. By asking website visitors to propose and vote on the agenda, the result is not a list handed down from on high by old-bull politicians, but one handed up from the true grassroots in this country. After garnering nearly half a million votes in less than two months, the Contract from America has now been finalized into a blueprint that will serve notice to public officials about what the people want for their future.

And the top ten are…

1. Protect the Constitution
2. Reject Cap & Trade
3. Demand a Balanced Budget
4. Enact Fundamental Tax Reform
5. Restore Fiscal Responsibility & Constitutionally Limited Government in Washington
6. End Runaway Government Spending
7. Defund, Repeal, & Replace Government-run Health Care
8. Pass an ‘All-of-the-Above” Energy Policy
9. Stop the Pork
10. Stop the Tax Hikes

We are proud to join with millions of Tea Party activists across the country to announce the arrival of the Contract from America and the exit of elected officials who continue to ignore calls for fiscal responsibility, constitutionally-limited government, and free markets.

Enact Fundamental Tax Reform

Adopt a simple and fair single-rate tax system by scrapping the internal revenue code and replacing it with one that is no longer than 4,543 words—the length of the original Constitution.

SUMMARY

The current tax system is a perverse combination of class warfare and special interest gimmicks. With more than 70,000 pages of law and regulation, it is an anchor weighing down the American economy. High tax rates, corrupt loopholes, and pervasive double taxation of saving and investment are a recipe for reducing American competitiveness. To make America more prosperous, the internal revenue code should be replaced by a flat tax or a sales tax, both of which are based on the notion that laws should apply equally to all people. Moreover, people are rewarded for creating jobs and wealth with real tax reform, rather than rewarded for having more lawyers, lobbyists, and accountants. Real tax reform also means a low tax rate to make America a vibrant competitor in the global economy.

But it is also important to identify what is not real tax reform. Under no circumstances should politicians be allowed to adopt a new tax – such as a European-style value-added tax – without first completely repealing all income taxes. Politicians should not be allowed to pull a bait-and-switch that will finance a much bigger burden of government. Politicians have been swapping loopholes for campaign cash since the income tax was created in 1913. It’s time to end the scam.

~ Dan Mitchell, Ph.D. Cato Institute

FairTax, Flat Tax, and the Need for Fundamental Tax Reform

Our nation faces many important issues, of which the Contract from America will offer a handful of actionable solutions that can reasonably and immediately be addressed by those who seek to represent Americans in Congress.

For many Americans, the need for fundamental tax reform is front and center. They recognize our tax system has evolved into an unfair punitive government mechanism to redistribute wealth and serve special interests.

Many interesting ideas, including the FairTax and the flat tax, have been offered as potential solutions to our broken tax system. At first glance, some of these ideas reflect competing interests. However, the common goal and first priority of those interests should be to raise the profile of the need for fundamental tax reform, sustain a national dialogue on the issue, and allow various solutions to compete with one another in the marketplace of ideas. Those ideas will rise and fall based on the merits, with the very best ideas naturally rising to the top.

Importantly, FairTax is a founding coalition partner of the Contract from America. Based on survey responses, comments on the orignal Contract from America site, and discussions with Neal Boortz and Ken Hoagland, we agreed to unite behind the notion of fundamental tax reform broadly and deal with the FairTax / flat tax debate once fundamental tax reform is squarely on the national agenda.

What about all of the support for the FairTax during the early stages of the Contract from America initiative? Why isn’t the FairTax or the flat tax specifically mentioned in the current choices on the Contract from America?

When this effort began, the original website made clear that the early stages of the process would be used to generate ideas and engage in debate. Visitors could vote on ideas and advance issues important to them in ways that were virtually unrestricted.

For example, highly engaged activists often returned to the site over and over to promote and support their favorite ideas. While some had the support of well-organized efforts, others (that were often just as compelling) were buried under mountains of political discourse.

In addition, the process offered a four month window of opportunity to introduce and debate ideas. Those that were introduced early in the process had a significant advantage over those that were introduced in the final weeks. With few exceptions, specific ideas introduced early received more votes.

The most important part of the early stage of the process was to identify the issues that truly resonated with Americans and the need for fundamental tax reform was identified as one such issue. With regard to the specific proposals of FairTax and the flat tax (not to mention other compelling proposals), we concluded that to choose one over the other at this early stage will only serve to divide rather than unite us on a critical issue impacting every single American.

In the end, there are hundreds of important issues and only the Constitution is well-suited to address them all in a manner consistent with the values of the Founding Fathers.

Americans will continue to weigh in on the issues important to them and the Contract from America will become a stronger, more refined document as a result.

Reform is a process. The Contract from America is part of that process. It cannot possibly be all things to all people, but it can help refocus the national debate, and offer a tool to hold elected officials more accountable in 2010 and beyond.