Tax Policy
I believe the current federal tax system is overly complex. In part, this is due to our historical
inclination to use the tax code to influence consumer, investor and business behaviors.
Fairer, Flatter
I support changes to our tax system that would make it simpler, flatter and fairer. I think doing so would
reduce the influence of our tax code on our economic decisions, and reduce the time it takes to file our returns.
Two changes I would support are reducing the number of brackets and minimizing the impact of the Alternative Minimum Tax.
Be responsible
I endorse the "PAYGO" rules, which were enacted in 1990 but allowed to expire in 2002. Serious pay-as-you-go rules
require Congress to balance new spending with revenue, and lost revenue with spending cuts. I would only support tax
cuts when they are accompanied by equal-sized spending cuts. This is essential if we are to restore fiscal discipline
in government. The current Congress' refusal to couple tax cuts with spending cuts has added billions to the deficit.
Once is enough
I am also generally opposed to double taxation, as in the case of dividends and capital gains. While it may not be
politically or fiscally prudent to eliminate these taxes, I would be against an increase in these taxes.
Fiscal Responsibility
Our nation went from record surplus to a huge deficit in no time flat - and that was before the
war in Iraq and the devastation of Katrina, both of which have forced even more borrowing.
Indeed, we are borrowing about $60 billion a month from China, South Korea, Japan, and other
foreign countries just to make ends meet. Our president
has actually outspent every president since LBJ. Why should you care? There are at least three
reasons.
First, ceding some of our fiscal sovereignty to other nations weakens our influence abroad. It
is more difficult to take a hard line with a country when you owe it money.
Second, when the government has to borrow money, interest rates are forced up. That makes it
more expensive for us to pay off car loans, student loans, credit card bills, etc. The extra
interest acts like a tax hike on the entire economy.
Third, there are no free lunches. Sooner or later, we will have to pay off the debt. That means
spending cuts or tax hikes in the future. So deficits don't just hurt the economy now, they also
hurt it in the future.
Reducing the deficit won't be easy or popular. Being responsible rarely is. But it is the
right thing to do.
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