Tax reform not tax rearranging
Individual / Personal Tax reform:
Every election, we hear the same song and dance about "Tax Reform." But let’s be honest: all the career politicians ever do is move a few loopholes around or tweak a bracket. That isn't reform, it’s just rearranging the furniture. I’m proposing true and real tax reform. I believe the federal government has no business in the individual tax lives of the American people. Washington has become too big and too distant to be writing a tax code that fits a country as diverse as ours. The local economy right here in Massachusetts is worlds apart from the local economy in Montana. Yet, the federal government tries to force us all into the same "one-size-fits-all" bucket. It just doesn't work. My proposal moves all individual tax collection back to the state level and fundamentally changes how the federal government is funded. The current system in place has an average effective W-2 tax rate of 14%. If we remove some of what the federal government is responsible for we should be able to lower federal taxes overall. That is why I am proposing we start with a lower, flat 12% total federal tax on the states, broken down like this: 10% for National Priorities that still gets sent to Washington to fund the things the Feds are actually constitutionally mandated to do, like National Defense and interstate infrastructure. The remaining 2% should be used for State and town grants, local infrastructure projects and the Emergency Disaster Relief Fund: This is a dedicated "lockbox." By having a standing 2% stay with the states we stop the political bickering over "emergency spending" every time a crisis hits. This removes the need for "earmarking grant money and creates a level and fair playing field for every state. Washington would still have oversight on this 2% and approve the spending when requested by the states but we would be able to cut a lot of the federal red tape and make things more efficient. The federal government’s job ends there. The States remain autonomous, deciding for themselves how to raise the revenue to cover that 12% federal tax. Whether your state chooses a progressive income tax, a flat tax, or to rely more on sales taxes, property taxes, use taxes, or even vacation and tourism taxes, is entirely up to your local legislators and you. This moves the decision-making closer to home, where the individual citizen actually has a say in how, when, and where their taxes are collected and spent. This is one of the handful of ways I think we can return the power to the people.
The Automated State Return: As a federal legislator, I will use my platform to encourage states to modernize the tax return process. Currently, your banks, your mortgage company, your landlord and your employer already send your financial data to the government. Why should you have to spend hundreds of dollars or hours and hours of our lives to report information the state already has? I want to see the states adopt an automated filing system. The state aggregates the data they’ve already received about your finances, prepares a return for you, and sends it to you for review. If it looks good, you do nothing; it files automatically in 60 days. If something is off, you check with your accountant, tax professional or clarify it directly with the state. This cuts out the middleman and saves you time, money, headache, and stress. It’s time to stop the mandates from D.C. and return the power to the people where it belongs.
Corporate Tax Reform:
We hear the phrase "Corporate Tax Reform" every single election, but much like individual taxes, all the career politicians ever do is move a few loopholes around or change a percentage point. They treat every business in America, from the mom-and-pop shop right here in the 5th District to global conglomerates like Google and Walmart as if they’re the same thing. They aren't, and it’s time we stop pretending they are. I’m proposing that we scrap our current, cumbersome one size fits all corporate tax code and replace it with three totally separate codes that do not overlap. It’s about common sense, transparency and leveling a playing field that has been tilted against small businesses for far too long.
The "Whole Story" Pledge: The reason our tax code is so massive is so that politicians can hide favors for massive corporations in the fine print. When a new bill passes, the Democrats cherry-pick the parts that make them look like heroes, and the Republicans cherry-pick the parts that make the other side look like villains. Both sides are being disingenuous. They never give you the whole story; they just want you to blindly trust their one-sided view because they know you aren't going to read a 3,000-page bill cover-to-cover. My pledge to you is different: I will either write or force bills to be short and simple enough for the average American to understand for themselves or I will give you the whole story, good, bad, and indifferent myself. No more partisan "trust us not them." I want you to have the facts, all the facts and nothing but the facts.
The Three-Tier Solution:
Code 1: Small to Mid-Sized Independent Businesses (fewer than 50 employees / under $10M revenue). This code will be simple, easy to understand, and carry a lower percentage to help support our small and locally owned businesses. You shouldn't need a team of lawyers just to stay compliant with ever changing tax codes.
Code 2: Large Privately Owned Corporations. This code will be built around innovation and growth, encouraging these big players to reinvest in their growth and their people right here at home. We will use this code to promote growing businesses keeping more of their process here in America.
Code 3: Publicly Traded Companies. If you want the massive financial benefit of trading on the U.S. Public Market, you should pay for that privilege. Trillions of dollars from 401ks and IRAs flow automatically into these companies every day. That is a massive, "hidden" advantage, and it’s time these companies paid their fair share for that access. This code will carry a slightly higher minimum tax and incentivize publicly traded companies to meet higher standards in regard to the pay gap, price gouging and excessive executive compensation.
By breaking the system into three clear, separate codes, we strip away the politicians' ability to manipulate the system and drastically increase government transparency. They won't be able to tell you they support something because it helps small businesses while really supporting it because it mostly benefits massive corporations and shareholders. Increasing transparency is the only way to rebuild trust in a government where currently, less than one out of every four people believes Washington will do the right thing with their money. It’s time to move past the buzzwords and implement a system that actually makes sense for the people, not the politicians.