U.S. White House hopeful Paul backs 14.5 percent federal flat tax

[Eugene]

Source: Reuters

Politics | Wed Jun 17, 2015 9:59pm EDT

U.S. White House hopeful Paul backs 14.5 percent federal flat tax

WASHINGTON

Republican U.S. presidential candidate Rand Paul is proposing that businesses and individual Americans pay a federal flat tax of 14.5 percent in a plan that would cut the government's tax revenue by more than $2 trillion over 10 years.

The Kentucky senator's plan, which he describes in a Wall Street Journal's opinion piece being published on Thursday, would establish a 14.5 percent flat-rate tax applied equally to all personal income, including wages, salaries, dividends, capital gains, rents and interest.

All deductions except for a mortgage and charities would be eliminated under the proposal. Paul said the first $50,000 of income for a family of four would not be taxed and that for low-income working families, the plan would retain the earned-income tax credit.

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His proposal also would eliminate the payroll tax on workers and several federal taxes including gift and estate taxes, telephone taxes and all duties and tariffs.

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Read more: http://www.reuters.com/article/2015/06/18/us-usa-election-paul-idUSKBN0OY05O20150618

[DonCoquixote]

1. which of course means

Poor have to pay more for rent and groceries while the rich stash their money in Dubai.

[Rincewind]

2. For those who didn't catch it,

payroll taxes, which Aquabudda wants to eliminate, fund such things as Social Security, Medicare and Unemployment insurance.