Summary

The U.S. has one of the most complicated and inefficient tax and regulatory systems in the world, which harms American competitiveness. It also favors large corporations over startups and small businesses, who can’t afford the cost of compliance. Reforming our complex, inefficient, and counterproductive tax and regulatory systems is a key component of rebuilding a great American future.

Key Recommendations

Taxes

My tax plan eliminates the personal income tax, corporate income tax, and payroll taxes. It implements a Value Added Tax (VAT), where businesses and other institutions pay a fixed tax rate on their receipts less their outlays for materials, equipment, rent, etc. It also restores tariffs to where they were when America grew the fastest and became the industrial powerhouse of the world.

My tax plan would end the requirement for individuals to keep records and file income tax returns. It would make the tax system fairer by removing the regressive payroll tax, which is levelled on the first $168,000 of income. For businesses, it would eliminate the headaches with valuing inventories, depreciating buildings and equipment, and qualifying for special tax breaks. That would save billions in accounting costs and legal fees. And the tariffs would remove incentives for businesses to outsource operations overseas.

Peter Morici, who is an economist and emeritus business professor at the University of Maryland, has estimated that all personal income taxes, corporate income taxes, and the payroll tax could be replaced with a 19% VAT. However, this does not take into consideration an increase in tariffs. My goal would be to keep the VAT at 15%, with tariffs making up the rest of the revenue.

Regulations

Require that all major regulations undergo a cost-benefit analysis.

Require that all major regulations be approved by Congress.

Require that new laws include “sunset" provisions and carefully limit rulemaking authority when Congress delegates that power to federal agencies.