The scandals that have emerged out of the Internal Revenue Service over the last month, including the agency’s targeting of Tea Party and conservative groups, have brought attention to the need to reform the tax code. In an editorial at the Washington Examiner, Larry Kudlow, host of CNBC’s The Kudlow Report, explained that the “complexity of the tax code that nurtures the corruptness of the IRS.”
“There’s a buzz in Washington about this possibility, where both Democrats and Republicans are interested in reform. We need a simpler and flatter tax code,” wrote Kudlow. “We need to get rid of the crony-capitalist insider deductions and exemptions, which have given the IRS so much power. These deductions and exemptions are precisely what nurtured the political corruption that led to a major scandal.”
Outside of the concerns over the IRS’s role in ObamaCare, the need for tax reform is one of the most frequent points that have been made in the aftermath of the scandals.
Sen. Ted Cruz (R-TX) has been among the members of Congress pushing the idea of tax reform. However, Cruz also wants to abolish the IRS. During an interview on Fox News this weekend, Cruz explained that the United States should move to a “simple flat tax where the average American can fill out taxes on postcard.”
“Look, we have seen in recent weeks that the IRS has not honored its trust with the American people; that the Obama administration has demonstrated a willingness to use the machinery of government to target their political enemies. That is wrong,” Cruz told Eric Bolling of Cashin’ In. “It was wrong when Richard Nixon did it and it was wrong when Barack Obama did it. It’s a manifestation of too much power in the federal government. When the federal government has that much power in individual lives, it’s an invitation to be abused.”
“I think we ought to abolish the IRS and instead move to a simple flat tax where the average American can fill out taxes on postcard. Put down how much you earn, put down a deduction for charitable contributions, home mortgage and how much you owe,” he added. “It ought to be a simple one page postcard, and take the agents, the bureaucracy out of Washington and limit the power of government.”
House Ways and Means Chairman Dave Camp (R-MI) and Senate Finance Committee Chairman Max Baucus (D-MT) have a launched a website — TaxReform.gov — and Twitter account — @simplertaxes — dedicated to hearing ideas on tax reform. But what kind of reform those two may have in mind could be very different from the pro-growth proposals offered by fiscal conservatives in Congress.
You can watch Cruz’s comments below: