Source: http://news.aol.com/political-machine/2008/04/20/mccains-optional-flat-tax/
Apr 20th 2008 10:44AM
Lamar Alexander has signed on and explains, (as quoted at Redstate):
The Alexander proposal calls for giving taxpayers the option of paying a flat tax, set at 19 percent for the first two years it would be in effect and at 17 percent thereafter. He said that taxpayers would need only to file a one-page form.
Most opposition to a flat tax seems to congeal around the fact that people would need to let go of their beloved home interest deductions, and other deductions as well. This deal would negate that line of attack. If the home interest deduction works for you, take it, else take the 19%. In practice it would work out that high income earners would go for this option exclusively.
Opponents would be left to argue that it is unfair that the rich pay only 20% of their income in taxes. This is not the hill I would want to die on. Most Americans have a pretty decent sense of fairness and the idea that paying 1 dollar out of every five that I make to the government as unfairly low, will seem pretty ludicrous.
This will also have the advantage of shoring up support among the pro-business Republicans, who have been sketchy over McCain's record on taxes in the past.
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