By Tom Quiner
Six Senators have presented a framework to tackle our deficits and the debt ceiling in a bipartisan way.
The plan is lacking in detail at this point and should be approached warily. There are things I don’t like about it.
Having said that, they have put a dynamic idea on the table ripped from the pages of a Steve Forbes’ campaign speech from years past. The “gang” is proposing to flatten income tax rates, an idea with a world-wide track record for boosting the economy.
They propose reducing the top marginal income tax rate from 35% to somewhere between 23% and 29%. In return, they would simplify the tax code by eliminating some deductions to offset the reduced rate.
The idea is a winner.
A simpler tax code boosts productivity by putting dollars to work creating jobs instead of paying lawyers and accountants to figure out thousands of pages of tax code.
I would love to see a pure flat tax. The gang of six takes a step in the right direction by moving toward just three tax rates.
We’ll see if it goes anywhere. As they say, the devil is in the details. Let’s see what the details look like.