the flat federal income tax for the usa

7/29/2019 The Flat Federal Income Tax for the USA

1/24

AmericanFlat FederalIncome Tax

David M Severance

[email protected]

720-392-0420

ACCT525

Current Issues in Accounting

Victoria Marschner

August 18, 2012
mailto:[email protected]:[email protected]:[email protected]


2/24

American Flat Federal Income Tax

Page 1 of23

Table of Contents

Introduction ................................................................................................................................................ 2

A Brief History of the US Income Tax ....................................................................................................... 3

Definitions.................................................................................................................................................... 4

Progressive Income Tax .......................................................................................................................... 4

Value Added Tax (VAT) ........................................................................................................................... 5

Flat tax ...................................................................................................................................................... 5

Flat Tax Proponents .................................................................................................................................. 6

Rick Perry .................................................................................................................................................. 6

Newt Gingrich ............................................................................................................................................ 7

Herman Cain ............................................................................................................................................. 7

Malcolm S Forbes Jr. ............................................................................................................................... 8

Rep. Dick Armey ....................................................................................................................................... 8Daniel Mitchell .......................................................................................................................................... 9

Flat Tax Opponents ................................................................................................................................... 9

Holley Ulbrich ............................................................................................................................................ 9

Linda Beale ............................................................................................................................................. 10

The Popular Flat Tax Plans ..................................................................................................................... 10

The Forbes Plan ...................................................................................................................................... 11

The Armey Plan ....................................................................................................................................... 11

Replace the Income Tax with a Flat 17% Tax ....................................................................................... 11

Individual Wage Tax ................................................................................................................................ 12

Business Tax .......................................................................................................................................... 12

Guards against Higher Taxes ................................................................................................................ 12

The Rick Perry Plan ................................................................................................................................ 13

The Gingrich Plan.................................................................................................................................... 13

The Cain 9-9-9 Plan ................................................................................................................................ 13

Economics ............................................................................................................................................... 14

Simplicity ................................................................................................................................................. 14

Economic Growth .................................................................................................................................... 15

Eliminate the Tax Lobby ......................................................................................................................... 16

Global Competitiveness .......................................................................................................................... 16

Conclusion .............................................................................................................................................. 17

Works Cited .......................................................................................................................................... 21

Works Cited Continued...22-23


3/24


Page 2 of23

Introduction

One might think it would be considered economic suicide for a Tax Accountant

to write a paper on the concept of the United States(US) changing to a flat income tax.

The approach will be to balance strong opinion from the author that will be that will be

backed up by research to support many of these opinions. The main reason for this

approach is because this Tax Accountant is an American first and has grown sick and

tired of special interests running our lives.

As will be discussed further, the idea of why switching to a flat tax and eliminating

the majority of all tax deductions which have been lobbied by the various special

interests like the National Association of Realtors (Rohrlich, 2012). Additionally,

according to a report from the nonpartisan reform group Public Campaign; Thirty large

American corporations spent more money on lobbying than they paid in federal taxes

from 2008 to 2010 (Murphy, 2011). Steve Forbes writes in his book, one in six private

sector employees in Washington DC are employed by the lobbing industry. Half of their

efforts are directed at wrangling changes to the tax code (Forbes, 2005, p. 8).

America seems to be is broken; political and corporate corruption and lack of

ethics in Washington DC and on Wall Street. Read on and you will understand how the

adoption of the Flat Tax is the road map to taking back our country.

A Brief History of the US Income Tax

Article I, Section 8, Clause 1 of the United States Constitution, reads The

Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to


4/24


Page 3 of23

pay the Debts and provide for the common defense and general Welfare of the United

States; but all Duties, Imposts and Excises shall be uniform throughout the United

States; but is the current progressive Income Tax uniform throughout the United

States? Assuming the 16th amendment was ratified, does this ratification allow for a

progressive Income Tax under the US Constitution. Does that change the original

document calling for uniformity constitutional?

The nation had few taxes in its early history. From 1791 to 1802, the United

States government was supported by excise taxes on distilled spirits, carriages, refined

sugar, tobacco and snuff, property sold at auction, corporate bonds, and slaves. The

high cost of the War of 1812 brought about the nation's first sales taxes on Luxury items

(gold, silverware, jewelry, and watches) for 5 years but in in 1817, Congress did away

with all excise taxes in favor of tariffs on imported goods to provide sufficient funds for

running the government.

In 1862, in order to support the Civil War effort, Congress enacted the nation's

first income tax law. This temporarily created the Bureau of Internal Revenue that

managed tax collection duties. The income tax increasing government coffers by an

estimated $340 million during the 10 year period it existed (Investopedia US, 2012). The

Bureau of Internal Revenue is known today as the Internal Revenue Service (IRS). The

name was changed to emphasize a greater focus on serving the public rather than

merely collecting taxes. Today the IRS is a massive bureau; in 2004 the agency

collected over $2 trillion in revenue processing more that 224 million tax returns

(Investopedia US, 2012).

In 1913, the 16th Amendment to the Constitution made the income tax a


5/24


Page 4 of23

permanent fixture in the U.S. tax system. The amendment gave Congress legal

authority to tax income and resulted in a revenue law that taxed incomes of both

individuals and corporations. While Bill Benson makes quite the argument that the

sixteenth amendment was never ratified (Benson & Beckman, 1985); the fact remains,

since the ratification of the 16th Amendment to the Constitution, debate has existed

over the merits of how best to levy the income tax (Teller, 2011).

Definitions

Progressive Income Tax

A tax that takes a larger percentage from the

income of high-income earners than it does from

low-income individuals. The United States income

tax is considered progressive: in 2010, individuals

who earned up to $8,375 fell into the 10% tax

bracket, while individuals earning $373,650 or more

fell into the 35% tax bracket. Basically, taxpayers are broken down into categories

based on taxable income; the more one earns, the more taxes they will have to pay


6/24


Page 5 of23

once they cross the benchmark cut-off points between the different tax bracket levels

(Investopedia US, 2012). How is this uniform?

Value-Added Tax (VAT)

The VAT is best defined as a consumption tax

that is placed on a product whenever value is

added at a stage of production and at final sale;

it is most often used in the European Union.

The amount of value-added tax that the user

pays is the cost of the product, less any of the costs of materials used in the product

that have already been taxed (Investopedia US, 2012).

Flat Tax

In 1962, economist Milton Friedman came up with the idea of a flat tax which

would erase the tax brackets now in place and tax everyone's income at the same rate.

Friedmans flat tax would not

include any deductions

(DeRose, 1999-2012).

The Wall Street Journal

brought the idea of a flat

income tax into mainstream

America with an article by Hoover Institution economists Robert Hall and Alvin

Rabushka (1983, revised1995) titled, "A Proposal to Simplify Our Tax System.

Businesses are taxed on total sales less labor costs, cost of capital goods, and

purchase of raw materials, while individuals are taxed on the difference between their


7/24


Page 6 of23

total labor compensation and a personal allowance. There is no tax on savings and

interest, no double taxation of dividends.

Herman Cain's 9-9-9 Plan:

Herman Cain's controversial "9-9-9" tax plan would replace the existing national tax

code with 9% business taxes, 9% income taxes, and a 9% national sales tax.

Flat Tax Proponents

Almost every United States presidential campaign {season} that include a Republican

primary in the third quarter of an election year since mid-1990s; one or more of the

candidates include a plan for the flat income tax. The current Republican season {2012}

was no different. This campaign season brought out three (3).

Rick Perry

Rick Perry is proposing letting Americans choose between their

existing income tax rate or a new flat tax of 20 percent, part of a

tax and spending reform plan that the Republican presidential

candidate is dubbing "Cut, Balance and Grow" and lowering the

corporate tax to 20 percent as well. Eliminate taxes on dividends and capital gains,

aiming to free up money that presumably would be invested in economic growth

(Fox News, 2011).


8/24


Page 7 of23

Newt Gingrich

Gingrich advocates a 15% flat tax, keeping deductions on

charitable giving and home ownership, and allowing a $12,000

personal deduction. He also proposes four tax changes to help

small businesses expand:

1. Eliminate capital gains taxes.

2. Lower the corporate income tax to 12.5%

3. Allow for 100% expensing of new equipment.

4. End the death tax permanently (because many small businesses are

passed down to future generations) (Amadeo, Newt Gingrich 2012 Presidential

Campaign Plan for the Economy, 2012).

Herman Cain

2012 Presidential Candidate Herman Cain is the owner of

Godfather's Pizza. This business experience leads him to believe

the economy will naturally return to prosperity with less

government spending and regulation. Cain shares the

fundamental economic platform of simplifying and reducing taxes to drive economic

growth, a strategy known as supply-side economics (Amadeo,

http://useconomy.about.com/od/2012-Campaign/p/Herman-Cain-2012.htm, 2012).

All of this debate keeps the concept of the Flat Income Tax in the public eye and

on the water cooler circuit. It is interesting thing is that all three (partially for Cain)


9/24


Page 8 of23

of the current proposals have their roots planted by Dick Army and Steven Forbes,

and of course Milton Freedman.

Malcolm S. Forbes, Jr.

Steve Forbes, Editor of Forbes Magazine, is probably better known

for the concept of the Flat Income Tax in the US than Milton

Friedman. Steve Forbes former candidate for the US Presidency

(1996, 2000) and Author ofFlat Tax Revolution: Using a Postcard to

Abolish the IRS(Forbes, 2005). The Forbes plan calls for a flat 17% tax on income

above the first $36,000 and scrapping the tax code. Don't fiddle with it. Throw it out

(2005). Steve Forbes believed (as many others) it would eliminate the principal source

of political corruption in Washington, DC.

Rep. Dick Armey

The Freedom and Fairness Restoration Act (FFRA) was introduced by

Congressman Dick Armey of Texas onJune 16, 1994 in a Wall Street

Journalop-ed piece, and subsequently introduced it as HR4585 in the

104th Congress. Like the Forbes plan it scraped the 1986 Internal

Revenue code (as revised) and replaced it with a 17% flat taxso simple Americans can

file their taxes on a form the size of a postcard(Armey D. , 1994).

Prior to being elected to Congress in 1985, Dr. Dick Armey was Associate

Professor of economics at University of North Texas from 1972 to 1977 and Chairman

of the economics department from 1977 to 1983 (Guttery, 2002). If any politician would

have a clue about effective tax policy, Dr. Dick Armeywas certainly one of them.


10/24


Page 9 of23

Daniel MitchellDaniel is a senior fellow at the CATO Institute in Washington writes in

US News and World Report on April12, 2010, It is time to implement a

simple and fair flat tax. Instead of the hundreds of forms required by the

IRS, the flat tax uses two simple postcards. Families use the household

postcard, and all they need to know is their labor income, available on a

W-2 form. They then subtract an allowance based on family size. The remaining amount

is taxable income, and the tax bill is based on the flat rate. The business postcard is

equally simple. All businesses, from Microsoft to a hot dog stand (as well as individuals

with "Schedule C" income), start with total revenues, and then calculate taxable income

by subtracting wage costs, input costs, and investment costs. The IRS then gets a flat

percentage of that remaining amount.

The special interests hate the flat tax because it means no loopholes, no

complexity, no shelters, and no special preferences. All income is treated equally. Some

taxpayers may not like losing various deductions, but treating income equally also

means that there is no double taxation, so the death tax and capital gains tax are

abolished (Mitchell, 2010).

Flat Tax Opponents

Dr. Holley Ulbrich

Dr. Ulbrich is an economics professor emeritus and senior fellow at the

Strom Thurmond Institute at Clemson University; is radically opposed


11/24


Page 10 of23

to the concept of the flat tax. In an op-ed piece in US News, she calls it class warfare

yet another attempt to reduce the tax obligations of higher-income households in

exchange for the unenforceable hope or promise that they might use the money to

invest and create jobs, maybe even jobs in the United States (Ulbrich, 2010).

Linda Beale

Ms. Beale is an associate professor at Wayne State University Law School.

In an article in the New York Times calls the Flat tax regressive, in that they

place a high tax burden on the most vulnerable at the lower income scales

(Beale, 2011). Theres a lot wrong with flat taxes. The term is used to

designate a "flat rate" income tax (often with a zero rate for the poorest) as opposed to

our current graduated rate structure that imposes slightly higher rates on those who

have more capacity to pay. She then goes on to sound like a President Obama political

ad saying and have benefited much more from the various government systems that

make stable markets, inheritance and the other foundations of great wealth and large

incomes possible

The Popular Flat Tax Plans

The Forbes Plan

America needs to take a new road, one toward an expansion future that is bigger and

better than our past (1995)

The first element is dramatic pro-growth tax cuts.Start by scrapping the tax code. Don't fiddle with it. Junk it. Throw it out. Bury it.


12/24


Page 11 of23

Replace it with a pro-growth, pro-family tax cut that lowers tax rates to 17%

across the board and expands exemptions for individuals and children so that a

family of four would pay no taxes on the first $36,000 of income.

The flat tax would be simple. You could fill it out on a postcard. It would be

honest. It would eliminate the principal source of political corruption in

Washington-- trading loopholes for campaign cash.

There would be no tax on Social Security. No tax on pensions. No tax on

personal savings. It would zero out capital gains taxes and eliminate estate

taxes.

Since 1970 -- in just 25 years -- Washington spending has increased more than seven

fold. During those same years, family income in America has declined. But the

politicians say "we" can't afford a tax cut. Maybe we can't afford the politicians (2005).

The Armey Plan (FFRA)

Replaces the income tax with a 17 percent flat tax

The bill repeals today's complicated income tax system in total and replaces it

with a low, simple flat tax. Under the bill, every dollar of income in the economy is taxed,

with wage and pension income collected from individuals and all other income collected

from businesses. Individuals pay 17 percent of wage income calculated on a return so

simple it can fit on a postcard. Businesses pay 17 percent of business income,

calculated on an equally simple return (Armey & Shelby, 1995).


13/24


Page 12 of23

Individual Wage Tax

Individuals pay 17 percent of all wages, salaries, and pensions, after subtracting

family allowances. The flat tax replaces the current income tax system, but not Social

Security and Medicare payroll taxes. Social Security benefits would not be taxed.

Business Tax

All business income, whatever the source (corporate, partnership, sole

proprietor, professional, farm, and rental profits and royalties) is taxed at the one low

rate. Businesses pay 17 percent of the difference, if positive, between revenues and

expenses. Expenses are defined as purchases of goods and services, capital

equipment, structures, land, wages and contributions to employee retirement plans. No

deductions are permitted for fringe benefits, interest, or payments to owners. Collecting

business income earned by individuals at its source -- the business -- allows for a

simple, airtight system that ensures all income in the economy is taxed (Armey &

Shelby, 1995).

Guards against higher taxes

To help prevent a future Congress from raising taxes, rewarding a special

interest, or complicating the tax code, the bill contains a provision which requires a 60

percent supermajority of the House and Senate to:

1. Raise the tax rate

2. Create multiple tax rates

3. Lower the family allowance

4. Add a loophole (Armey & Shelby, 1995).


14/24


Page 13 of23

The Rick Perry Plan

The heart of Perry's plan would reduce or eliminate an array of taxes and replace the

current progressive Income tax a with 20 percent flat tax, end taxes on Social Security

benefits, estates, dividends and capital gains, which would most help upper-income

people. He would lower the corporate income tax rate as well as the personal income

tax rate. Perry's plan would let people exempt $12,500 of their income, plus $12,500 for

each dependent, from taxation. He would keep popular deductions, such as those for

mortgage interest, state taxes and charity gifts, for families making less than $500,000 a

year.The Gingrich Plan

Gingrich advocates a 15% flat tax, keeping deductions on charitable giving

and home ownership, and allowing a $12,000 personal deduction. He also

proposes four tax changes to help small businesses expand:

1. Eliminate capital gains taxes.

2. Lower the corporate income tax to 12.5%

3. Allow for 100% expensing of new equipment.

4. End the death tax permanently (because many small businesses are

passed down to future generations) (Amadeo, Newt Gingrich 2012

Presidential Campaign Plan for the Economy, 2012).

Herman Cain's 9-9-9 Plan:

Herman Cain's controversial "9-9-9" tax plan would replace the existing national


15/24


Page 14 of23

tax code with 9% business taxes, 9% income taxes, and a 9% national sales tax.

Specifically, it would:

1. Eliminate all payroll taxes.

2. Remove the double taxation of dividends.

3. Do away with the Estate Tax and all taxes on capital gains.

4. Create "Empowerment Zones" in the inner cities which offer business and

individual tax deductions.

5. Combine the Fair Tax with the Flat Tax.

6. Eradicate the IRS and repeal the 15th Amendment (Herman Cain, 2012).

Economics

Simplicity

Because the existing system's maze of

exemptions, loopholes, depreciation

schedules, graduated rates, and

targeted tax breaks is eliminated,

taxpayers will save countless hours and

expense in filing their yearly tax returns.

The Tax Foundation, a Washington,

D.C.-based nonprofit organization which

closely monitors federal tax policy,

estimates the flat tax would reduce
http://taxes.about.com/od/payroll/qt/payroll_basics.htmhttp://useconomy.about.com/od/fiscalpolicy/p/Fair_Tax.htmhttp://useconomy.about.com/od/usfederaltaxesandtax/p/Flat-Tax.htmhttp://useconomy.about.com/od/usfederaltaxesandtax/p/Flat-Tax.htmhttp://useconomy.about.com/od/fiscalpolicy/p/Fair_Tax.htmhttp://taxes.about.com/od/payroll/qt/payroll_basics.htm


16/24


Page 15 of23

compliance costs by 94 percent. Complexity is a hidden tax amounting to more than

$100 billion. This is the cost of tax preparation, lawyers, accountants, and other

resources used to comply with the Internal Revenue Code. The Internal Revenue

Service even admits that the current tax code requires taxpayers to devote 6.6 billion

hours each year to their tax returns (Dalrymple, 2005). Yet even this commitment of

time is no guarantee of accuracy. The code is so complex that even tax experts and the

IRS often make mistakes. All taxpayers, from General Motors to a hamburger-flipping

teenager, would be able to fill out their tax return on a postcard-sized form, and

compliance costs would drop by tens of billions of dollars.

Economic Growth

A flat tax would spur increased work, saving, and investment. By increasing incentives

to engage in productive economic behavior, it would also boost the economy's long-term growth rate. Even if a flat tax boosted long-term growth by only 0.5 percent, the

income of the average family of four after 10 years would be as much as $5,000 higher

than it would be under current tax laws.

According to Harvard economist Dale Jorgenson, tax reform would boost national

wealth by nearly $5 trillion (Jorgenson, 2003). It would do this in part because all

income-producing assets would rise in value since the flat tax would increase the after-

tax stream of income that they generate.


17/24


Page 16 of23

General Electric spent more lobbying

the government than it did in federal

income taxes between 2008 and 2010

Eliminate the Tax Lobby

The report from the nonpartisan reform group Public

Campaign; Thirty Large American Corporations Spent

More Money on Lobbying than They Paid in Federal

Taxes from 2008 to 2010; explains, the 29 companies

that paid no tax actually received tax rebatesover

those three years, "ranging from $4 million for Corning

(GLW) to nearly $5 billion for General Electric (GE)." The amounts spent on lobbying

added up to $476 million, over three years this amount is further calculated as, roughly

$400,000 each day, including weekends." The same firms spent an additional $22

million on donations to federal campaigns (Murphy, 2011).

A flat tax gets rid of all deductions, loopholes, credits, and exemptions. Politicians

would lose all ability to pick winners and losers, reward friends and punish enemies, and

use the tax code to impose their values on the economy. Not only does this end a major

source of political corruption, but it is also pro-growth since companies would no longer

squander resources lobbying politicians or making foolish investments just to obtain

favorable tax treatment (Daniel Mitchell, 2005).

Global Competitiveness

In a remarkable development, former communist

nations are leading a global tax reform revolution. Estonia

was the first to adopt a flat tax, implementing a 26

percent rate in 1994, just a few years after the collapse of


18/24


Page 17 of23

the Soviet Union. The other two Baltic republics of the former Soviet Union enacted flat

taxes in the mid-1990s, with Latvia choosing a 25 percent rate and Lithuania picking 33

percent. Along with other free-market reforms, the flat tax significantly improved

economic growth, and the "Baltic Tigers" became role models for the region. Learning

from its neighbors, Russia stunned the world by adopting a 13 percent flat tax, which

went into effect in 2001.

The Russian flat tax quickly yielded positive results: The economy prospered,

and revenues poured into government coffers since tax evasion and avoidance became

much less profitable. The flat tax then spread to Serbia, which in 2003 chose a 14

percent rate. Slovakia hopped on the bandwagon the following year with a 19 percent

flat tax, as did Ukraine, which chose a 13 percent tax rate. Earlier this year, Romania

joined the flat tax revolution with a 16 percent tax rate, and Georgia adopted a 12

percent flat tax rate, which has the honor, at least temporarily, of being the lowest rate

in the world.

In a global economy, it is increasingly easy for jobs and capital to escape high-tax

nations and migrate to low-tax nations. This means that the reward for good tax policy is

greater than ever before, but it also means that the penalties for bad policy are greater

than ever before. This is why so many nations are lowering tax rates and reforming their

tax systems (Daniel J. Mitchell, 2004).[A flat tax will make America a magnet for

investment and job creation.

Conclusion

Toward the end of the introduction of this paper, it was suggested that America seemed

to be is broken. Every day in the news there is political and corporate corruption in the
http://www.heritage.org/research/reports/2005/07/a-brief-guide-to-the-flat-tax#_ftn13http://www.heritage.org/research/reports/2005/07/a-brief-guide-to-the-flat-tax#_ftn13


19/24


Page 18 of23

newspapers and on television. The lack of ethics that is rampant and for the first time in

our history our credit rating was downgraded (Krantz & Chu, 2011). We are currently in

{allegedly ended in 2009) the largest longest recession (CNN Money, 2010) that without

all the government spending would have been worse than the great depression.

America need to be repaired, we the people need to take back control of this country

that one politician after another has sold to some special interest. Shown here in this

project paper has been a theoretical discussion of how eliminating the current

progressive income tax system and implementing some rendition of the flat income tax

written about by Steven Forbes, Dick Armey or Robert Hall and Alvin Rabushka. The

current tax code doesnt work, American spend billions of hours and millions of dollars

on lawyers and accountants like us to avoid the progressive income tax as we know it.

With the Flat tax, saving and investment is encouraged, business will have access to all

the capital it needs, unemployment as we know it would be non-existent.

The implementation of a Flat 17%-20% Flat tax on corporations would bring so many

employment opportunities back to the United States we would need another baby boom

like after World War II. Without the current tax code and all of the exemptions and

loopholes companies have no reason to lobby for lower taxes and special benefits.

Individuals would have true motivation to prosper, save and invest and businesses

would be encouraged to grow. There would be no need for the current Internal Revenue

code. No need for Schedules M1-M3 on the current 1120. Whether the US continues

with Generally Accepted Accounting Principles (GAAP) or something that is merged

with IFRS, the bottom line will be net profit will be taxed at 17%-20%. No need to worry

about things like installment sales, tax-free exchanges. Another area would be foreign


20/24


Page 19 of23

taxes; it would simply be an expense item. NO benefit to the US Corporation for

overseas operations.In actuality, the lower simple tax laws would provide a huge

reason to bring the factories and jobs back to the USA.

For those that would argue that charities would suffer; that is likely not true. When is

the last time you thought about the deduction at Christmas when you dropped money in

the red kettle. Was a tax deduction the primary motivation behind the recent

contributions by Kiss and Neil Diamond to the victims of the Century 16 disaster in

Aurora? No!!! America is the most generous country in the world and we always will be.

For those that argue the rich should pay more; where does this concept really come

from? Form a bunch of people that need to address their jealously. America is still the

land ofopportunity; its just been lobbied to DEATH and is having a hard time coming

back.

Lastly, lets look at the revenue that would likely be brought into the US Treasury

by switching from our current complex tax code to a simple fair Flat Income tax. Initially,

those revenues will likely decrease, but as the economy grows and becomes strong

again; Supply Sided Economics has shown that when there is more money in an

Americans pocket; consumer confidence is higher and suppliers of products and

service are heavily demanded. In the long run, revenues will surpass what they ARE

NOW (Tax Policy Center, 2010) which might make it possible to reduce the current $16

Trillion debt (US Debt Clock, 2012).


21/24


Page 20 of23

Barack Hussein Obama II was right about one thing, we need CHANGE, we

need to fire the lobbyist by implementing the Flat Income Tax and We the People

can then TAKE BACK CONTROL OF OUR COUNRY.


22/24


Page 21 of23

Works Cited

Amadeo, K. (2012). http://useconomy.about.com/od/2012-Campaign/p/Herman-Cain-2012.htm.

Retrieved August 28, 2012, from http://useconomy.about.com/od/2012-Campaign/p/Herman-

Cain-2012.htm: http://useconomy.about.com/od/2012-Campaign/p/Herman-Cain-2012.htm

Amadeo, K. (2012). Newt Gingrich 2012 Presidential Campaign Plan for the Economy. Retrieved August

28, 2012, from Useconomy.about.com/od/2012-Campaign/p/Newt-Gingrich-And-The-Economy-

2012-Presidential-Campaign-Plan.htm: http://useconomy.about.com/od/2012-

Campaign/p/Newt-Gingrich-And-The-Economy-2012-Presidential-Campaign-Plan.htm

Armey, C. D., & Shelby, S. R. (1995, July). A Comprehensive Plan to Shrink the Government and Grow the

Economy. Ney Your, New York, United States of America.

Armey, D. (1994, June 16). Review Merits of Flat Tax. Wall Street Journal.

Beale, L. (2011, October 13). A Plan for the Uber-Rich. New York Times.

Benson, B., & Beckman, M. (1985). The Law that Never Was: The Fraud of the 16th Amendment and

Personal income Tax . South Holland: Constitutional Research Assoc.

CNN Money. (2010, Novenber 23).An eyeblink glance at the economy, Recession: The longest ever.

Retrieved August 28, 2012, from

http://money.cnn.com/galleries/2009/news/0910/gallery.economic_recovery/8.html:

http://money.cnn.com/galleries/2009/news/0910/gallery.economic_recovery/8.html

Dalrymple, M. (2005, April 15). Americans Spend 6.6 Billion Hours on Taxes .Associated Press.

Daniel J. Mitchell, P. (2004). The Economics of Tax Competition: Harmonization vs. Liberalization.

Washington DC: The Heritage Foundation.

Daniel Mitchell, P. (2005).A Brief Guide to the Flat Tax. Washington, D.C: The Heritage Foundation.

DeRose, J. L. (1999-2012). Flat Rate Income Tax Definition. Retrieved July 30, 2012, from ehow.com:

www.ehow.com/about_6715009_flat-rate-income-tax-definition.html#ixzz229cqsSFb

Forbes, S. (2005). Flat Tax Revolution: Using a Postcard to Abolish the IRS. Washington DC: Regnery

Publishing .

Fox News. (2011, October 24). Perry Pitches Scrapping Tax Code, Offering Optional 20 Percent Flat Tax.

Retrieved August 6, 2012, from foxnews.com/politics/2011/10/24/perry-to-pitch-scrapping-tax-

code-offering-optional-20-percent-flat-tax/:

http://www.foxnews.com/politics/2011/10/24/perry-to-pitch-scrapping-tax-code-offering-

optional-20-percent-flat-tax/


23/24


Page 22 of23

Works Cited Continued

Guttery, B. (2002). Representing Texas: A Comprehensive History of the United States and Confederate

Senators and Representatives from Texas. Woodway: Eakin Press.

Herman Cain. (2012, April 15). C TV, Something NewEverday;999. Retrieved 28 2012, August, from

Hermancain.com/999/: http://hermancain.com/999/

Investopedia US. (2012). investopedia.com. Retrieved July 30, 2012, from Revenue Act Of 1862:

http://www.investopedia.com/terms/r/revenue-tax-act-1862.asp#ixzz229JvqUVX

Investopedia US. (2012). Progressive Income Tax. Retrieved July 30, 2012, from Investopedia:

http://www.investopedia.com/terms/p/progressivetax.asp#axzz229JcBZR8

Investopedia US. (2012). Value-Added Tax - VAT. Retrieved July 30, 2012, from investopedia.com:

http://www.investopedia.com/terms/v/valueaddedtax.asp#ixzz229ileEm1

Jorgenson, D. W. (2003, March-April). Efficient Taxation of Income . Harvard Magazine, pp. 31-33.

Krantz , M., & Chu, K. (2011, August 8). S&P downgrades U.S. credit rating from AAA. Retrieved August

28, 2012, from http://usatoday.com/money/economy/2011-08-05-s-and-p-downgrades-

credit_n.htm: http://www.usatoday.com/money/economy/2011-08-05-s-and-p-downgrades-

credit_n.htm

Malcolm S. Forbes, J. ". (1995, October 9). Steve Forbes. (R. MACNEIL, Interviewer)

Mitchell, D. (2010, April 12). Eliminate Tax Brackets and Complicated Forms With a Flat Tax. US News

and World Report.

Murphy, E. (2011, December 13). 30 Major U.S. Companies Spent More on Lobbying than Taxes.

DailyFinance.com.

Pearson Education, Inc. (2007). History of the Income Tax in the United States. Retrieved July 30, 2012,

from Infoplease.com: http://www.infoplease.com/ipa/A0005921.html/

Rohrlich, J. (2012, July 15). Real Estate Lobby Launches Shock and Awe Campaign to Block Tax Reform.

Retrieved 30 2012, July, from Minyanville.com:

http://www.minyanville.com/mvpremium/2011/07/21/real-estate-lobby-launches-shock/

Tax Policy Center. (2010). The Numbers: What are the federal governments sources of revenue?

Retrieved August 28, 2012, from taxpolicycenter.org/briefing-

book/background/numbers/revenue.cfm: http://www.taxpolicycenter.org/briefing-

book/background/numbers/revenue.cfm

Teller, L. B. (2011, Spring ). The Flat Tax:An Analysis of Americas Most Controversial Tax Reform Idea.

The Public Purpose, pp. 139-157.


24/24


Page 23 of 23

Works Cited Continued

Ulbrich, H. (2010, April 12). Flat Tax Is Class Warfare. US News and World Report.

US Debt Clock. (2012, August 28). US Debt Clock. Retrieved 28 2012, August, from US Debt Clock:

http://www.usdebtclock.org/

the flat federal income tax for the usa

Documents