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Small Businesses Need a Simplified Tax Code
Posted by Randy | June 08, 2011

Each year, taxpayers and small businesses spend nearly 2.5 billion hours preparing their tax forms. Even the commissioner of the Internal Revenue Service, Douglas Shulman, has said, “I find the tax code complex, so I use a preparer.”

The complexity of the current tax system heavily burdens small businesses, impacting their effectiveness and productivity. Many small businesses cannot afford to hire accounting firms so they are forced to navigate the code alone.

We need to simplify the tax code in order to encourage the growth of small businesses. A common sense tax reform would allow companies to dedicate their time and resources to expanding their business and creating new employment opportunities rather than wasting valuable time and energy decoding the tax code.

That’s why I have cosponsored the Freedom Flat Tax Act, which creates an optional flat tax. This bill would allow an individual or businessperson to opt out of the current tax system for a flat tax of 19% for the first two years and 17% thereafter. Additionally, the optional flat tax proposal would:

  • Eliminate the marriage penalty;
  • Repeal the death tax;
  • Abolish the Alternative Minimum Tax;
  • Eliminate capital gains taxes; and
  • Allow for immediate expensing of business capital equipment.

Do you think simplifying the current tax code system should be a priority in helping small businesses and boosting the economy?
Comments
Users are solely responsible for the opinions they post here and their comments do not necessarily reflect the views of Congressman Forbes.
  • M W commented on 6/9/2011
    Long over do, that is, a Flat Tax opt out system. Go for it, I'm all support. It's much needed in these times and in going forward. With this though, the present Tax code still needs major surgery, slice and dice. Far too strenuous even for the best of CPA's.
  • Paul C Nelson commented on 8/8/2011
    I always wonder why the flat tax is such a hard sell. We have this great call for "fairness" and what could be more fair than the flat tax? And boy would I like to make paying taxes easier. http://www.pcnanswers.com
  • Frederic Boisseau commented on 11/4/2011
    Rep. Forbes, I would wish you would take a look at the Fair Tax. I have looked at both a Flat Tax and a Fair Tax, and in my opinion the Fair Tax is a better system.
  • Mark Stevenson commented on 12/28/2011
    Randy, your title should read "Everyone needs a simplified tax code". The current code is a complete rip off in time, effort, and money. Furthermore, any tax should be simple enough to calculate in your head. Instead, most tax payers must wait until the end of each year and sweat-out completing their filing to determine what is owed or returned. Unfortunately that determination still has little understanding of how or why.
  • Glenn Thomas commented on 12/29/2011
    I would vote for almost anything that encourages economic growth and is simpler! Thank you for working for us Rep. Forbes!
  • ArLisa Middleton commented on 12/31/2011
    The wealthy need to pay their fair share of taxes and not be allowed so many tax breaks. This makes it harder on the economy and especially lower and middle class families suffer more.
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