America Needs to Replace the Current Tax Code, Not Reform It

High taxation under the current system is a problem that stifles economic and job growth in the private sector.  However, just cutting taxes does not solve the fundamental problem.  The real problem is a 73,608-page broken tax system.  The real solution is to replace the current tax system with a completely new system that collects taxes differently, more efficiently, more fair and transparent, and is revenue neutral.  The two best tax replacement solutions that have been developed are Herman Cain’s 999 Plan, and the FairTax Plan.

Herman Cain’s 999 Plan tackles America’s fundamental tax problem: a broken tax code.  The 999 Plan eliminates all forms of taxation under the current system and replaces it with three visible flat tax rates.  A 9 percent flat corporate tax, a 9 percent flat individual tax, and a 9 percent flat retail sales tax.

The 999 Plan also eliminates the capital gains tax, the repatriated profits tax, and the payroll tax.  It will also eliminates all deductions and special interest loopholes.  The 999 Plan is accompanied with a monetary policy that strengthens the U.S. Dollar.

The FairTax Plan eliminates all forms of taxation on income and payroll at the federal level.  It also eliminates taxes on alternative minimum, self-employment, estate, corporate, personal, social security and Medicare, gift, and capital gains.  The FairTax replaces all that it eliminates with one flat retail sales tax at 23 percent on new goods and services with no exemptions to keep the special interests from tinkering with the tax code.  A FairTax system also does not tax you on the basic necessities.

America is yearning for real solutions that solve the real problems.  Herman Cain’s candidacy and 999 Plan was generating enthusiasm because Mr. Cain understood that America wanted leaders who would offer real solutions.  Regardless of what the political and media elite would have us believe, the Tea Party is successful with moving the debate towards solutions because they draw attention to the real problems that America faces.

Lower taxes with a new tax system is the real solution that America needs to generate the economic growth, productivity, and job creation that our country needs.  Reduced spending and a smaller government footprint in our lives will sustain our new economic and tax system under the 999 Plan or the FairTax.

Mitt Romney moves in the right direction with his tax plan because he lowers taxes on all Americans.  However, his plan doesn’t do away with the current tax system, he just tweaks the current system with lower tax rates.  That doesn’t address the real problem.  Barack Obama would let the Bush Tax Cuts expire if it were truly up to him, add new taxes through his new healthcare entitlement, and put government spending on autopilot at full speed.

Mr. Romney and Mr. Obama both would be smart to endorse either Herman Cain’s 999 Plan or the FairTax if they truly want to fix America’s real economic problems.  America’s problems aren’t a Republican or Democrat issue.  It’s an American issue.  Americans should unite around the real solutions that transfer power from Washington back to the people.  Individual economic opportunity, not collective socialism, will get America working again.  Tax replacement with the 999 Plan or the FairTax is the first step to restoring America’s prosperity.