Fred on Taxes (i.e. More of Why the Americans For Tax Reform are Wrong)

I like putting the Americans For Tax Reform in the title because it drives web traffic like putting Ron Paul in your post. (Gratuitous, I know).

But this really has me steamed. I really don't like litmus tests, like this "No New (income) Tax Pledge". They have taken a piece of paper and raised it to the "Most Important Thing". Huckabee fans make the Human Life Amendment and the Marriage Amendment their litmus test.

How do you choose a candidate? I suggest that you look at his principles, positions and history and choose based on that.

So let's deal with this tax litmus test.

What are Fred's Principles on taxes.

The U.S. tax code is broken and a burden on U.S. taxpayers and businesses, large and small. Today’s tax code is particularly hostile to savings and investment, and it shows. To make matters worse, its complexity is a drag on our productivity and economic growth. Moreover, taxpayers spend billions of dollars and untold hours each year filling out complicated tax returns, just so they can send more money to Washington, much of it for wasteful programs and the pet projects of special interests. We need lower taxes, and we need to let taxpayers keep more of their hard-earned dollars—they know best where and how to spend them. And we need to make the system simpler and fairer for all. To ensure America’s long term prosperity and economic security, I am committed to:

• Fundamental tax reform built on the principles of simplicity, fairness, and growth.
  
• A new tax code that gets the government out of our citizens’ pocketbooks, while enhancing U.S. competitiveness abroad.
  
• Dissolution of the IRS as we know it.
  

From www.fred08.com.

What are Fred's Positions?

His complete plan is here. I will do the main points.

1. Permanently Extend the 2001 and 2003 Tax Cuts
   
2. Permanently Repeal the Death Tax
   
3. Repeal the Alternative Minimum Tax
   
4. Reduce the Corporate Tax Rate
   
5. Permanently Extend Small Business Expensing
   
6. Update and Simplify Depreciation Schedules
   
7. Expand Taxpayer Choice

This last item is probably the most revolutionary since it allows for taxpayers to opt into a flat tax system. Now the Americans for Tax Reform may say that the pledge allows for this, but I tell you the truth--if Fred were to sign it and then implement this flat tax system, he would be beat over the head with this because of changes in the tax rates or deductions. Fred is in a no-win situation here.

What is Fred's Record?

The Club for Growth has put out a report card on Fred. They note that he:

• Voted for the 2001 Bush tax cuts
  
• Voted for repeal of the Death Tax
  
• Voted for capital gains tax cuts
  
• Voted to require a supermajority to pass tax hikes
  
• Voted to reduce the amount of Social Security benefits subject to taxation
  
• Voted against waiving the Budget Act to allow for a cigarette tax hike

Their one hit on Fred is that he voted against an amendment that would have limited certain discretionary spending that would tie those limits to lower taxes. (Note, this would not have violated the AFTR No New Tax pledge.)

So, my conclusion is that Fred is making statements of principle and proposals that are in agreement with his history of voting. These principles call for lower taxation and simplified tax systems. I put his record and his proposals out for ANY of the other candidates to compare in ALL THREE AREAS. I cannot trust Huck, Rudy or Mitt on these issues simply because their history is not in line with their rhetoric--or even their worthless pledge to the Americans For Tax Reform.