The silliness continues, and I am surprised that the news media has not brought up the huge flaw in Paul Ryan‘s proposal for Tax Reform. In his Roadmap to Prosperity , Paul Ryan is proposing the following:
- Keep the existing system and
- Add a second option of a simple choice of a Simplified Tax Calculation of 10% of Adjusted Gross Income (AGI) up to $50,000 and 25% of AGI over $50,000 for single tax payers and and 10% of income up to $100,000 of AGI and 25% of AGI over $100,000.
So, if you had the choice between two systems, wouldn’t you choose the option that would allow you to pay the least amount of tax? So Congressman Ryan shows his lack of expertise in proposing such a flawed system. What on earth was he thinking? Or not thinking? Or was he out to bankrupt the United States?
This is not being talked about in the news and cannot help but wonder why this is the case. Here is the actual text of his proposal:
” This reform proposal responds in a fundamentally American way: it offers individuals a choice. Individuals can choose to pay their Federal taxes under the existing code, with all the familiar deductions and schedules; or they can move to a highly simplified income tax system. The simplified plan broadens the tax base by clearing out nearly all of the existing deductions and credits, compresses the tax schedule down to two low rates, and retains a generous standard deduction and exemption level. The tax form for this system would fit on a postcard. The goal is a more simple, fair, and efficient tax code, the components of which are described below.”