A plan to radically reform the US income tax system has been proposed by House Speaker Paul Ryan and House Ways & Means Chairman Kevin Brady. On the personal side, the system would become simpler, fairer and flatter. On the corporate side, the current system would be replaced by a cash flow tax, similar to a value-added tax with a carve out for wages.
The new system would remove the incentive of US companies to send investment dollars and jobs overseas. As a result, there could be a massive inflow of capitalthat would significantly raise productivity and wages for workers at all skill levels.
|John C. Goodman is a Senior Fellow at the Independent Institute, President of the Goodman Institute for Public Policy Research, and author of the widely acclaimed Independent books, A Better Choice: Healthcare Solutions for America, and the award-winning, Priceless: Curing the Healthcare Crisis. The Wall Street Journal and the National Journal, among other media, have called him the Father of Health Savings Accounts.|
|Laurence J. Kotlikoff is a professor of economics at Boston University and co-author of The Clash of Generations (The MIT Press, 2012).|
Obamacare remains highly controversial and faces ongoing legal and political challenges. Polls show that by a large margin Americans remain opposed to the healthcare law and seek to repeal and replace it. However, the question is: Replace it with what?