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It's Time For America to Replace Our Tax Code… Introducing The Neutral Tax!!!

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If we’ve learned anything from the continuing, government-manufactured financial crises that have become a seemingly favorite sport for the political class it’s that we need to replace our antiquated tax code of punishing a rapidly decreasing labor force in this country in favor for a modernized tax code that makes sense, takes the onus off of labor, and eliminates all direct federal taxes on citizens.

What is The Neutral Tax?

The Neutral Tax is a flat, federal tax on gross state government revenue

Benefits of The Neutral Tax

  • Eliminates the federal government’s micromanagement of tax policy
  • Compatible with most other tax reform proposals (implemented at the state level)
  • Enables each state to design its preferred tax structure
  • Eliminates the federal monopoly on tax policy
  • Eliminates all direct federal taxes on citizens
  • Eliminates the IRS as we know it
  • Makes repeal of the 16th Amendment (the federal income tax) practical
  • Eases future tax reform efforts — no more decades of debate
  • Integrates federal, state and local taxation policies
  • Makes the US more competitive internationally
  • Inherently non-partisan policy makes it easier to enact with bipartisan support

The Neutral Tax is deceptively simple. It eliminates all current federal taxes on citizens and businesses (including federal income, payroll, personal income, unemployment, corporate, gift, estate, capital gains, alternative minimum, self-employment, gasoline, etc.) and replaces them with a singular flat tax on the gross revenue of each state government (including all local taxes and fees)

Additional information available in The Neutral Tax FAQ [here].

Read The Neutral Tax White Paper

Sound interesting? The Neutral Tax White Paper below explains The Neutral Tax in more detail:

 

How Will the Transition to The Neutral Tax Impact Each State?

Since the Neutral Tax is not in effect yet, each state currently differs as to how much of their tax burden goes to the state vs. federal government. Under The Neutral Tax, every state will be paying the same percentage of their revenue to the federal government; for some states, that will be less than they pay now, and for other states it will be more. It is up to the state to determine how these differences are allocated among their citizens and businesses. The federal government could also ease the transition by offering temporary tax rebates that decline over time to states that pay more under the new method.

Here is a list by state showing the current federal tax burden and how it will change under The Neutral Tax:

This solutions is unique in that it allows for states to adopt a tax system that works best for it’s citizens… as I support a consumption tax and was a huge proportionate of the 9-9-9 tax plan, The Neutral Tax allows individual states to move into a consumption tax structure (if they choose) that will increase revenue while relieving the heavy tax burden it’s citizens currently carry. It’s defiantly worth serious consideration.

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