A former Treasury official in the George H. W. Bush administration has put forward a new tax reform proposal. It would eliminate the income tax for households that earn less than $100,000, cutting the rates for those above that threshold to 16% or 25.5%. Instead, everyone would pay a Value Added Tax (basically a national sales tax) of 12.9%. Charles Lane explains the proposal after the jump.
What would you think of this? [Read more...]