Rand Paul calls for 14.5 percent flat tax

Sen. Rand Paul (R-Ky.) wants to gut the U.S. tax code and instead install a flat tax, insisting such a plan would “turbocharge” the economy and be fairer for average taxpayers. Paul, who’s running for president in 2016, would put into place one 14.5 percent rate for individual, business and investment income, and remove all but a couple of the tax breaks currently on the books. The current top rate for individuals and many small businesses is near 40 percent, while the corporate rate tops out at 35 percent.
Taxpayers would get to keep the deductions for home mortgage interest and charitable deductions under Paul’s plan, and would also not have to pay any payroll taxes. Plus, the gift and estate taxes would be scrapped, and the first $50,000 of a family of four’s income would be exempt from taxes.


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