Implement a Flat Tax w/ Standard Deduction

Thanks to Valladarex for suggesting this topic and for agreeing to debate me. I"m looking forward to a spirited discussion.In this round, I will briefly outline what I see as a series of fair and equitable adjustments to the U.S. Tax Code. In Round Two, both my opponent and I will go into greater detail and advocacy for our basic plans.The United States Tax Code as currently constituted reflects a series of political compromises. This has made it complex and unwieldy, but it also has the virtue of reflecting a balancing of political interests through the democratic process. My aim, then, would be to preserve the basic structure of the tax code without making any radical changes, while also seeking to implement reforms that simplify personal income tax and eliminates various perverse incentives.Here is a basic summary of what I would propose:Lower corporate income tax: The United States has one of the highest corporate income tax rates in the world. In our global economy, this has encouraged many corporations to keep their cash reserves overseas and avoid the hefty tax bill that would come with repatriation. We should lower the corporate income tax rate to be more commensurate with other Western economies to encourage those assets to be brought home and spent in America.Treat capital gains as ordinary income: Returns on investment are taxed at a much lower rate than income earned from labor, which is why people like Warren Buffet will talk about paying less in taxes proportionately than his secretary, or why Mitt Romney only paid about 17% in taxes the year before he ran for President. Part of the justification for this has been our high corporate income tax rate, which is so high that investors can credibly argue that treating capital gains as ordinary income effectively subjects them to double taxation on the same earning. Thus, in conjunction with lowering the corporate income tax rate, increase capital gains rates so that the investor class pays the same on their passive income as they would if they had worked for it.Eliminate the cap on payroll taxes: Medicare and Social Security are not funded by income taxes, but on a flat 7.65% payroll tax on earnings up to $118,500. People making $800,000 a year, then, pay the same amount as someone making $120,000. The bulk of this tax burden falls on the middle class, who make less than $118,500. There are two great reasons for eliminating the cap: first, this is an incredibly regressive tax, and the tax burden should be shared more equitably with higher earners. Second, eliminating the payroll tax limit makes Social Security solvent into the indefinite future.Eliminate taxes for income earned overseas: The United States is one of the few nations to subject its citizens living abroad to its income taxes - income that a citizen earns while living in Paris, France, for example, is still taxed as though the individual lived in Paris, Texas. Often, the income is subjected to taxes in the country of residence as well, leading to a significant tax burden. This policy should be ended.Increase tax rates on higher earners: For decades, we have slashed at tax rates for high earners under the theory that these tax savings would be plugged back into the economy, creating jobs and boosting spending. George H.W. Bush, before being selected as Reagan"s running mate, called this "voodoo economics," and the intervening 36 years have not proved him wrong. The American economy, and the American middle class, were at their strongest during the era of significant progressive taxation. Make the IRS do taxes for you: For most people, the tax code is a pain because you have to prepare your own return, and risk auditing if you get it wrong. In most nations, the tax collecting authority prepares the return for you, and you simply need to make corrections if any errors have been made. While this is a bit reductive, the basic reason the United States doesn"t already do this is called "H&R Block lobbyists." To simplify taxes for the vast majority of Americans, we should make the process as convenient and painless as possible. That means not wasting a pile of consumer money on one or two tax preparation companies.Thank you, and I"ll eagerly await the details of my opponent"s plan.