Issues: Americans are overtaxed. Rates are too high; the rules, too complex; and compliance, highly burdensome. The current tax “system” creates excessive distortion in natural economic incentives, so all Americans are further burdened by the current tax regime. Clearly, the tax “system” runs counter to the spirit of the U.S. Constitution, which states that the federal government should “promote the general welfare” and should “secure the blessings of liberty.” The nation’s welfare is diminished and the blessings of liberty are constricted by the level and means of taxes in the U.S.

Principles: Taxes should be lower and simpler. Special interest users of government services should pay for said services. To the extent that Americans tolerate certain levels of pollution, polluters should pay for their damaging behavior. And mechanisms to allow the most economically disadvantaged to avoid taxation are appropriate, as taxation tends to disproportionately restrict their ability to “pursue happiness.”

Solutions: We:

Call for lowering the total tax burden on all Americans.
Believe that tax collection should be far simpler and less burdensome.
Support ending taxation for the most economically disadvantaged in America.
Advocate increasing transparency in government and tax “visibility,” so that all taxpayers recognize the full cost of government.

We believe that real tax reform is necessary for all Americans. With the principles cited above, we call on Congress to explore options that move the tax system in the appropriate direction. Options include:

A national consumption tax (sales tax).
Pollution taxes.
Increase in the personal exemption.
Increase in the IRA, including ending restrictions on their deductibility.
Unimproved-land-value tax.
Increases in the number and level of user fees.

Benefits:

Lowering taxes reduces the deadweight loss on economy that taxes and spending cause.
Simplifying taxes removes the hidden burden of compliance and eliminates many of the inefficient economic distortions caused by the current tax system.
Not taxing the most economically disadvantaged aids in allowing them to improve their lives and reduces their need for social services.
Taxing pollution is beneficial to the environment, and creates incentives to develop cleaner technologies.
Increasing IRAs aids in allowing taxpayers to prepare for their retirement; increases the capital formation necessary to create a more efficient commercial environment; and tends to increase savings rates and thereby lower interest rates, which is itself beneficial for all.

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