One option, the flat tax, eliminates individual deductions, exempts investment and savings income, and taxes the remaining income at 17 percent. Another option, a national sales tax, taxes all goods and services at 17 percent. All five national panelists agreed on four objectives of national tax reform. But the current complexity is partly due to measures to ensure fairness and encourage positive action, such as economic development, home ownership and employer provided health care. All agreed the poor should pay the least, and middle income taxpayers need a more fair tax system.
Small businesses provide our economy's foundation.
They need a tax system that frees resources for investment and ensures affordable capital. We also heard from a panel of Louisiana experts. They stressed that Louisiana, an exporting state, needs tax changes that foster global competitiveness. Others said that any new system must recognize that the tax code does more than raise money and encourage economic growth. It must also encourage important values, such as charitable giving.