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 capital—that would significantly raise productivity and wages for workers at all skill levels.