Rand Paul: Let's scrap the current tax code, eliminate special loopholes


Presidential candidate Sen. Rand Paul (R-K.y.) published an op-ed in the Wall Street Journal today to introduce his new tax plan. In his piece titled, "Blow Up the Tax Code and Start Over," Paul sketches the basic outline of his vision:
I am announcing an over $2 trillion tax cut that would repeal the entire IRS tax code — more than 70,000 pages — and replace it with a low, broad-based tax of 14.5 percent... 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. The first $50,000 of income for a family of four would not be taxed. For low-income working families, the plan would retain the earned-income tax credit. I would also apply this uniform 14.5 percent business-activity tax on all companies — down from as high as nearly 40 percent for small businesses and 35 percent for corporations.
Paul also sounded a populist note, arguing that if everyone "plays by the same rules" of his much-simplified proposal, "no one of privilege, wealth or with an arsenal of lobbyists can game the system to pay a lower rate than working Americans." Indeed, though Paul's plan would reduce taxes on the wealthy's personal income, it would also eliminate special loopholes that currently allow big corporations to finagle low or even negative tax rates.
Paul is expected to release the full plan later Thursday.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Bonnie Kristian was a deputy editor and acting editor-in-chief of TheWeek.com. She is a columnist at Christianity Today and author of Untrustworthy: The Knowledge Crisis Breaking Our Brains, Polluting Our Politics, and Corrupting Christian Community (forthcoming 2022) and A Flexible Faith: Rethinking What It Means to Follow Jesus Today (2018). Her writing has also appeared at Time Magazine, CNN, USA Today, Newsweek, the Los Angeles Times, and The American Conservative, among other outlets.
-
Pentagon reporters turn in badges after refusing rules
Speed Read They refused to sign a restrictive new press policy imposed by Defense Secretary Pete Hegseth
-
Supreme Court points to gutting Voting Rights Act
speed read States would no longer be required to consider race when drawing congressional maps
-
Trump says he authorized covert CIA ops in Venezuela
Speed Read He is also considering military strikes inside the country
-
‘Vile, racist’ leaked chats roil Young Republicans
Speed Read Leaders of Young Republican groups made racist, antisemitic and violent comments in private chats
-
Trump ties $20B Argentina bailout to Milei votes
speed read Trump will boost Argentina’s economy — if the country’s right-wing president wins upcoming elections
-
News organizations reject Pentagon restrictions
Speed Read The proposed policy is Defense Secretary Pete Hegseth’s latest move to limit press access at the Pentagon
-
Trump declares end to Gaza war, ‘dawn’ of new Mideast
Speed Read Hamas freed the final 20 living Israeli hostages and Israel released thousands of Palestinian detainees
-
Trump DOJ indicts New York AG Letitia James
Speed Read New York Attorney General Letitia James was indicted as Trump’s Justice Department pursues charges against his political opponents