I've previously mentioned (March 2) Rep. Paul Ryan's tax reform plan, but he presents it again in an op-ed piece detailing the GOP budget proposal in today's WSJ, so I'm reproducing it here.
Our budget does not raise taxes, and makes permanent the 2001 and 2003 tax laws. In fact, we cut taxes and reform the tax system. Individuals can choose to pay their federal taxes under the existing code, or move to a highly simplified system that fits on a post card, with few deductions and two rates. Specifically, couples pay 10% on their first $100,000 in income (singles on $50,000) and 25% above that. Capital gains and dividends are taxed at 15%, and the death tax is repealed. The proposal includes generous standard and personal exemptions such that a family of four earning $39,000 would not pay tax on that amount. In an effort to revive peoples' lost savings, and to create an incentive for risk-taking and investment, the budget repeals the capital gains tax through 2010 for all taxpayers.
On the business side, the budget permanently cuts the uncompetitive corporate income tax rate -- currently the second highest in the industrialized world -- to 25%. This puts American companies in a better position to lead in the global economy, promotes jobs here at home, and strengthens worker paychecks.
The GOP should mount an intensive, nationwide campaign to inform Americans about this plan. It should be emphasized that not only will enacting it reduce and simplify taxes for everyone, it will promote growth and increase revenues. McCain should have made this case during the Presidential campaign but that's (unfortunately) water under the bridge.
The following was pointed out by Mark Steyn.
Treasury Secretary Tim Geithner is now responsible for managing firms with trillions of dollars of equity. It hard enough running a corporation worth more than a billion. And Geithner is a guy who admittedly doesn't know how to respond to the Yes, No prompts in TurboTax.