By Reuters | June 18, 2015
WASHINGTON (Reuters) – Republican U.S. presidential candidate Rand Paul is proposing that businesses and individual Americans pay a federal flat tax of 14.5 percent in a plan that would cut the government’s tax revenue by more than $2 trillion over 10 years.
The Kentucky senator’s plan, which he describes in a Wall Street Journal’s opinion piece being published on Thursday, would establish a 14.5 percent flat-rate tax applied equally to all personal income, including wages, salaries, dividends, capital gains, rents and interest.
All deductions except for a mortgage and charities would be eliminated under the proposal. Paul said the first $50,000 of income for a family of four would not be taxed and that for low-income working families, the plan would retain the earned-income tax credit.
“My tax plan would blow up the tax code and start over,” Paul wrote.
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