The new tax reform plan recently unveiled by Republican lawmakers may lower some tax rates in the United States, but without reducing government spending former lawmaker Ron Paul believes American liberties are at risk.
In a new column published by the Ron Paul Institute for Peace and Prosperity, the former libertarian Congressman criticized the Republican-proposed Tax Reform Act of 2014 for attempting to lower rates but maintain current spending and revenue intake levels. Without substantial spending reform, Paul stated the government would continue to waste money that would be more efficiently used by individuals.
Proposed by Rep. Dave Camp (R-Mich.) earlier this year, the new Tax Reform Act would cut the top income tax rate from 39.6 percent to 25 percent, making up for the lost revenue by closing some loopholes and establishing a 10 percent surtax on various types of income over $450,000.
According to the Washington Post, Camp believes the new tax code would offer “a simpler code that lowers rates and collects roughly the same amount of money for the government — all without burdening the poor or unduly benefiting the rich.”
To Paul, however, the fact government revenue remains untouched is a significant failure. He took issue with the fact that the proposal closes loopholes – which he referred to as tax deductions – and that proponents are pushing the idea that reducing tax rates could actually bring in more money to the government.
The former lawmaker argues that since individuals are far more capable of addressing their financial needs than the government is, “the solution is to make sure tax cuts are big enough that they cost the government revenue.” Ultimately, Paul stated, “the more money the state has the greater its ability to violate our liberties.”
“Sadly, politicians in Washington refuse to consider any tax plan that would decrease government revenue,” he wrote. “This is because the prevalent attitude in DC favors protecting the welfare-warfare state over protecting our liberties.”
Finally, Paul took aim at the US government’s penchant for deficit spending, arguing that such a practice itself was a different form of taxation, since it pushes the Federal Reserve to monetize debt and push an inflation tax.
“Instead of worrying over the latest plan to enable the government to more efficiently take our money,” Paul wrote, “people who want to advance liberty must focus on breaking the intellectual and political consensus in support of the welfare-warfare state.”