2016 Presidential Candidates: Taxes and Regulation

To support economic growth for individuals and businesses of all sizes, we need a simple, fair and more competitive tax code and regulatory system that fosters rather than inhibits innovation. As the health care law is put in place, it should remain flexible for employees and employers and focus on providing affordable, quality care.

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Hillary Clinton (D) 

TAX PLAN AND ON TRUMP'S PLAN: "Well, everything you've heard just now from Donald is not true. I'm sorry I have to keep saying this, but he lives in an alternative reality. And it is sort of amusing to hear somebody who hasn't paid federal income taxes in maybe 20 years talking about what he's going to do. But I'll tell you what he's going to do. His plan will give the wealthy and corporations the biggest tax cuts they've ever had, more than the Bush tax cuts by at least a factor of two. Donald always takes care of Donald and people like Donald, and this would be a massive gift. And, indeed, the way that he talks about his tax cuts would end up raising taxes on middle-class families, millions of middle-class families. Now, here's what I want to do. I have said nobody who makes less than $250,000 a year -- and that's the vast majority of Americans as you know -- will have their taxes raised, because I think we've got to go where the money is. And the money is with people who have taken advantage of every single break in the tax code. And, yes, when I was a senator, I did vote to close corporate loopholes. I voted to close, I think, one of the loopholes he took advantage of when he claimed a billion-dollar loss that enabled him to avoid paying taxes. I want to have a tax on people who are making a million dollars. It's called the Buffett rule. Yes, Warren Buffett is the one who's gone out and said somebody like him should not be paying a lower tax rate than his secretary. I want to have a surcharge on incomes above $5 million. We have to make up for lost times, because I want to invest in you. I want to invest in hard-working families. And I think it's been unfortunate, but it's happened, that since the Great Recession, the gains have all gone to the top. And we need to reverse that. People like Donald, who paid zero in taxes, zero for our vets, zero for our military, zero for health and education, that is wrong. And we're going to make sure that nobody, no corporation, and no individual can get away without paying his fair share to support our country." (Clinton; October 11, 2016)
 
CORPORATE TAXES: "First, let’s start with protecting taxpayers and making sure we have more fairness in the system. It is wrong that corporations and the super wealthy play by a different set of rules. A Wall Street money manager should not be able to pay a lower tax rate than a teacher or a nurse. And I’ll tell you something else. Our largest companies should not be able to get away with paying hardly anything at all. It is insulting when they engage in these games like moving their headquarters over to a foreign country, on paper, not in reality, just to take advantage of lower tax breaks. And it’s infuriating when they take tax breaks with one hand and give out pink slips in America with the other hand. So here’s what we’re going to do. We’re going to close those loopholes. I have got a list of them we’re going after. We’re going to make Wall Street corporations and the super rich start paying their fair share of taxes. We’re going to pass something called the Buffett Rule, which means multimillionaires cannot pay lower rates than their secretaries and other people working for them. We’re going to put in place a new exit tax. If companies try to leave our country to avoid paying their fair share, if they try to outsource jobs, they’re going to have to give back every tax break they ever received in our country." (Clinton; October 3, 2016)
 
TAXES: "And let’s be honest. The tax code rewards corporations for outsourcing jobs, and their profits overseas, instead of investing here in the United States. And — it is riddled with loopholes that let the rich get even richer and make income inequality even worse. It tilts the playing field further against small businesses that can’t afford lawyers and lobbyists. So with all these pressures pushing in the wrong direction, it’s even more important that we have an election about these very issues." (Clinton; October 3, 2016)
 
REGULATION: “Today I want to send a clear message to every boardroom, every executive suite across America: If you scam your customers, exploit your employees, pollute our environment or rip off taxpayers, we will find ways to hold you accountable. It is outrageous that eight years after a cowboy culture on Wall Street wrecked our economy, we’re still seeing thousands of bankers playing fast and loose with the law.” (Clinton; October 3, 2016)
 
REGULATION: "And they are aided and abetted by the rules and incentives in our economy who actually encourage people at the top to take advantage of consumers, workers, small businesses and taxpayers. That makes it tougher for the well-meaning CEOs to take the high road and it gets even harder when we don’t aggressively enforce the rules." (Clinton; October 3, 2016)
 
"Trickle down it did not work. It got us into the mess we were in 2008-2009. Slashing taxes on the wealthy hasn’t worked and a lot of really smart, wealthy people know that. And they are saying, hey we need to do more to make the contributions we should be making to rebuild the middle class. I don't think top-down works in America. I think building the middle-class, investing in the middle class, making college debt-free so more young people can get their education, helping people refinance their debt from college at a lower rate, those are the kinds of things that will really boost the economy, broad-based, inclusive growth." (Clinton; September 26, 2016)
 
"Because what I have proposed would not add a penny to the debt and your plans with add five trillion dollars to the debt. What I have proposed would cut regulations and streamline them for small businesses. What I have proposed would be paid for by raising taxes on the wealthy because they have made all the gains in the economy. And I think it's time that the wealthy and corporations pay their fair share to support this country." (Clinton; September 26, 2016)

TAX REFORM: "So I’m proposing a new tax credit to encourage more companies to share profits with workers. More broadly, we will fight for a more progressive, more patriotic tax code that puts American jobs first. Right now, when a corporation outsources jobs and production, it can write off the costs. We must stop that, and we must make them pay back any tax breaks they received from any level of government in our country. For those that move their headquarters overseas to avoid paying their fair share of taxes, they’re going to have to pay a new exit tax. So if they want to go, they’re going to have to pay to go. And Wall Street, corporations, and the super-rich, should finally pay their fair share of taxes. That’s why I support the so-called ‘Buffett Rule,’ because multi-millionaires should not be able to pay a lower tax rate than their secretaries. We should also add a new tax on multi-millionaires, crack down on tax gaming by corporations and close the carried interest loophole – something I’ve advocated for years." (Clinton; August 11, 2016

RED TAPE: "Let’s also expand incentives like the New Markets Tax Credit that can bring business, government, and communities together to create good jobs in places that have been left out or left behind. From neglected neighborhoods in Detroit and Flint, to Logging Country, Coal Country, Native American communities, from rural areas ravaged by addiction and lost jobs to industrial regions hollowed out when factories closed. As President, I will also make a major push to empower small businesses and entrepreneurs, with new national initiatives to cut red tape at every level and expand access to credit, especially through community banks and credit unions. I will propose a new plan to dramatically simplify tax filing for small businesses. Right now, the smallest businesses, the kind that my dad had, because it was a really small company, spend 20 times more per employee to prepare their taxes compared to larger companies. It should be as easy as printing out a bank statement." (Clinton; August 11, 2016)

SMALL BUSINESS REGULATION: "Cutting red tape. It shouldn’t take longer to start a small business in the United States than it does in Canada, France, or South Korea. We need to cut red tape for small businesses at every level of government and build a regulatory roadmap to help small businesses navigate the regulations and reduce compliance costs." (Clinton, 2016)
 
"Now, here's the thing, we're not only going to make all these investments, we're going to pay for every single one of them. And here's how: Wall Street, corporations, and the super-rich are going to start paying their fair share of taxes. Not because we resent success. Because when more than 90% of the gains have gone to the top 1%, that's where the money is. And if companies take tax breaks and then ship jobs overseas, we'll make them pay us back. And we'll put that money to work where it belongs … creating jobs here at home! Now I know some of you are sitting at home thinking, well that all sounds pretty good. But how are you going to get it done? How are you going to break through the gridlock in Washington? Look at my record. I’ve worked across the aisle to pass laws and treaties and to launch new programs that help millions of people. And if you give me the chance, that’s what I’ll do as President." (Clinton, 2016)
 
"Hillary Clinton believes that we need an economy that works for everyone, not just those at the top. But when it comes to taxes, too often the wealthiest and the largest corporations are playing by a different set of rules than hardworking families. Hillary is committed to restoring basic fairness in our tax code and ensuring that the wealthiest Americans and large corporations pay their fair share, while providing tax relief to working families. That’s not only fair, it’s good for economic growth, because she will use the proceeds to create good-paying jobs here in America—and make bold investments that leave our economy more competitive over the long run. As president, Hillary will: Restore basic fairness to our tax code. Hillary will implement a “fair share surcharge” on multi-millionaires and billionaires and fight for measures like the Buffett Rule to ensure the wealthiest Americans do not pay a lower tax rate than hardworking middle-class families. She’ll close loopholes that create a private tax system for the most fortunate, and she’ll ensure multi-million-dollar estates are paying their fair share of taxes. Close corporate and Wall Street tax loopholes and invest in America. Hillary will close tax loopholes like inversions that reward companies for shifting profits and jobs overseas. She will charge an “exit tax” for companies leaving the U.S. to settle up on their untaxed foreign earnings. She will close tax loopholes that let Wall Street money managers pay lower rates than some middle-class families. And she’ll reward businesses that invest in good-paying jobs here in the United States. Simplify and cut taxes for small businesses so they can hire and grow. The smallest businesses, with one to five employees, spend 150 hours and $1,100 per employee on federal tax compliance. That’s more than 20 times higher than the average for far larger firms. We’ve got to fix that. Provide tax relief to working families from the rising costs they face. For too many years, middle-class families have been squeezed by rising costs for everything from child care to health care to affording college. Hillary will offer relief from these rising costs, including tax relief for Americans facing excessive out-of-pocket health care costs and for those caring for an ill or elderly family member. Pay for ambitious investments in a fiscally responsible way. Hillary believes that we can afford to pay for ambitious, progressive investments in good-paying jobs, debt-free college, and other measures to strengthen growth, broaden opportunity, and reduce inequality. Hillary will use the proceeds from ensuring the wealthiest and the largest corporations pay their fair share to pay for these investments without adding to the debt." (Clinton, 2016)
 
"Rewrite the rules so that more companies share profits with employees—and fewer ship profits and jobs overseas. Hillary will reward companies that share profits and invest in their workers, and she will raise the minimum wage to a living wage. She will crack down on companies that shift profits overseas to avoid paying U.S. taxes, and she’ll make companies that export jobs give back the tax breaks they’ve received in America. She will defend existing Wall Street reform and push for new measures to strengthen it." (Clinton, 2016)
 
WALL STREET REGULATION: "The financial crisis showed how irresponsible behavior in the financial sector can devastate the lives of everyday Americans—costing 9 million workers their jobs, driving 5 million families out of their homes, and wiping out more than $13 trillion in household wealth. Hillary Clinton has a plan to reduce the risk of future crises and make our financial system fairer and more accountable. Hillary’s plan will tackle dangerous risks in the financial system: Impose a risk fee on the largest financial institutions. Big banks and financial companies would be required to pay a fee based on their size and their risk of contributing to another crisis. Close loopholes that let banks make risky investments with taxpayer money. The Volcker Rule prohibits banks from making risky trading bets with taxpayer-backed money—one of the core protections of the post-financial crisis Wall Street reforms. However, under current law these banks can still invest billions through hedge funds, which are exempt from this rule. Hillary would close that loophole and strengthen the law. Hold senior bankers accountable when a large bank suffers major losses. When a large bank suffers major losses with sweeping consequences, senior managers should lose some or all of their bonus compensation. Make sure no financial firm is ever too big or too risky to be managed effectively.Hillary’s plan would give regulators more authority to force overly complex or risky firms—including banks, hedge funds and other non-bank financial institutions—to reorganize, downsize, or break apart. Tackle financial dangers of the “shadow banking” system. Hillary’s plan will enhance transparency and reduce volatility in the “shadow banking system,” which includes certain activities of hedge funds, investment banks, and other non-bank financial companies. Impose a tax on high-frequency trading. The growth of high-frequency trading has unnecessarily placed stress on our markets, created instability, and enabled unfair and abusive trading strategies. Hillary would impose a tax on harmful high-frequency trading and reform rules to make our stock markets fairer, more open, and transparent. Hillary would also hold both corporations and individuals on Wall Street accountable by: Prosecuting individuals when they break the law. Hillary would extend the statute of limitations for prosecuting major financial frauds, enhance whistleblower rewards, and provide the Department of Justice and the Securities and Exchange Commission with more resources to prosecute wrongdoing. Holding executives accountable when they are responsible for their subordinates’ misconduct. Hillary believes that when corporations pay large fines to the government for violating the law, those fines should cut into the bonuses of the executives who were responsible for or should have caught the problem. And when egregious misconduct happens on an executive’s watch, that executive should lose his or her job. Holding corporations accountable when they break the law. Hillary will make sure that corporations can’t treat penalties for breaking the law as merely a cost of doing business, so we can put an end to the patterns of corporate wrongdoing that we see too often today." (Clinton, 2016)

"Over the past few months, I’ve listened to Americans’ concerns about an economy that still seems stacked for those at the top. Nowhere is this imbalance more apparent—or more problematic—than in our tax code. It’s full of loopholes that allow the wealthiest Americans and most powerful corporations to game the system and avoid paying their fair share. It even permits a highly paid Wall Street trader to sometimes pay a lower tax rate than a teacher or a nurse. And it creates perverse incentives that discourage long-term investments that would grow our economy and raise incomes for hard-working Americans.  Reforming our tax code to promote strong, fair, long-term growth is a centerpiece of my campaign, and I will continue outlining specific new ideas in the months ahead...I want more Americans to have the chance to work hard and get ahead, just like we did. And reforming the tax code can help. We should be guided by some simple principles.  First, hard-working middle-class families and small businesses need and deserve tax relief and simplification. As President, I’ll make that a priority.  Second, those at the top have to pay their fair share. That’s why I’ve called for closing the carried interest loophole, which lets wealthy financiers pay an artificially low rate, and implementing the Buffett Rule, which makes sure millionaires don’t pay lower rates than their secretaries.  Third, the tax code shouldn’t reward companies for shipping jobs or profits overseas or encourage quick trades on Wall Street at the expense of long-term investments that create jobs and raise incomes here at home. I’ve proposed raising short-term capital gains tax rates for those in the top bracket and then going to a six-year sliding scale that will encourage longer-term investments."  (hillaryclinton.com, 2015)


 

 

Donald Trump (R)

TAX PLAN: "Well, one thing I'd do is get rid of carried interest. One of the greatest provisions for people like me, to be honest with you, I give up a lot when I run, because I knock out the tax code. And she could have done this years ago, by the way. She's a United States -- she was a United States senator. She complains that Donald Trump took advantage of the tax code. Well, why didn't she change it? Why didn't you change it when you were a senator? The reason you didn't is that all your friends take the same advantage that I do. And I do. You have provisions in the tax code that, frankly, we could change. But you wouldn't change it, because all of these people gave you the money so you can take negative ads on Donald Trump. But -- and I say that about a lot of things. You know, I've heard Hillary complaining about so many different things over the years. "I wish you would have done this." But she's been there for 30 years she's been doing this stuff. She never changed. And she never will change. She never will change. We're getting rid of carried interest provisions. I'm lowering taxes actually, because I think it's so important for corporations, because we have corporations leaving -- massive corporations and little ones, little ones can't form. We're getting rid of regulations which goes hand in hand with the lowering of the taxes. But we're bringing the tax rate down from 35 percent to 15 percent. We're cutting taxes for the middle class. And I will tell you, we are cutting them big league for the middle class. And I will tell you, Hillary Clinton is raising your taxes, folks. You can look at me. She's raising your taxes really high. And what that's going to do is a disaster for the country. But she is raising your taxes and I'm lowering your taxes. That in itself is a big difference. We are going to be thriving again. We have no growth in this country. There's no growth. If China has a GDP of 7 percent, it's like a national catastrophe. We're down at 1 percent. And that's, like, no growth. And we're going lower, in my opinion. And a lot of it has to do with the fact that our taxes are so high, just about the highest in the world. And I'm bringing them down to one of the lower in the world. And I think it's so important -- one of the most important things we can do. But she is raising everybody's taxes massively." (Trump; October 9, 2016)
 
"Well, the first thing you do is don't let the jobs leave. The companies are leaving. I could name, I mean there are thousands of them, they’re leaving and they’re leaving in bigger numbers than ever. And what you do is you say fine, you want to go to Mexico or some other country, good luck, we wish you a lot of luck. But if you think you're going to make your air conditioners or your cars, or your cookies or whatever you make, and bring them into our country without a tax, you're wrong. And once you say you’re going to tax them coming in and our politicians never do this because they have special interests and the special interests want those companies to leave because in many cases they own the companies. So what I'm saying is we can stop them from leaving, we have to stop them from leaving, and that's a big big factor." (Trump; September 27. 2016)
 
TAX PLAN: "Under my plan I will be reducing taxes tremendously from thirty five percent to fifteen percent for companies, small and big businesses." (Trump; September 27. 2016)
 
"Everyone’s taxes will go down. Hillary Clinton has supported tax increases on the middle class for her entire career. She’s voted for higher taxes, 235 times in the Senate. That’s all? I thought it was more than that, 235 times. I hope there’s not a decimal point in there or so, 23.5 times. But I don’t think there is — voted for higher taxes, 235 times in the Senate. Now, she’s planning another job killing — $1.3 trillion tax increase, that’s what her tax increase is gonna be, folks. Like you’re not paying enough, right? Her plan will tax many small business — businesses who are already in deep trouble out of business. Then we have — we will make — and this is so important, this was an Ivanka Trump, OK? My daughter, so great. So great. We’re gonna make childcare expenses tax deductible for working families. And just many, many other things. I mean, we’re gonna make some unbelievable changes and it’s — it’s so easy. Again, you know regulations — I’m traveling all over and I’m meeting with business owners — and beyond business owners, even people that work at the businesses, they’re being laid off because of it. Regulations; if I told you — and I’m so surprised, this is probably the biggest surprise — if you have a small business and I said, you can have one or the other, a major tax cut like we’re gonna — you know, we’re bringing it down to 15 percent from more than — much more than double that. But if I told you that you could have a massive tax decrease or really substantially — but in a real way — cut regulations — a hundred percent of the people I talk to would take the regulation, if you could only have one or the other. It’s amazing, its amazing. And that surprised me. Surprised you too? Surprised him, too. A hundred percent. I mean, everybody — businesses can’t form anymore, the tax — the regulatory burden is so incredible that you can’t form businesses — very hard — and businesses that are in existence are being put out of existence for regulations that don’t do anything. We want safety regulations, we want environmental regulations. We’re not, you know, people that don’t want these things. We have to have that. We want clear air, we want clean water. We want clear water. But — but…To do that — and there are certain things that you want to do, but to do that, you don’t have to destroy our country and destroy our businesses. So you know, I just wrote this down today. Hillary wants to raise taxes. It’s a comparison. I want to lower them. Hillary wants to expand regulations, which she does big league. Can you believe that? I will reduce them very, very substantially. Could be as much as 70, 75 percent." (Trump, 2016)
 
OUTSOURCING TAXATION: "What’s gonna work is — as an example, Carrier moves to Mexico and you wish him a lot of luck, good luck, have a nice plant. I hope my friend bills it, right?And then you know what happens? When they make their air conditioners — and then think they’re gonna sell that air conditioner, people living in Indianapolis — where they come from — for a similar price.And they think they’re gonna sell it there and have no repercussions? With me, they have repercussions, OK? With me, they have repercussions. With me, we inform them that if you move, you’re gonna pay a 35 percent tax on every single air conditioner that pour across our now very secure borders." (Trump,2016)
 
TAXES: "Taxes are one of the biggest differences in this race. Hillary Clinton – who has spent her career voting for tax increases – plans another massive job-killing $1.3 trillion-dollar tax increase. Her plan would tax many small businesses by almost fifty percent. Recently, at a campaign event, Hillary Clinton short-circuited again – to use a now famous term – when she accidentally told the truth and said she wanted to raise taxes on the middle class. I am proposing an across-the-board income tax reduction, especially for middle-income Americans. This will lead to millions of new good-paying jobs. The rich will pay their fair share, but no one will pay so much that it destroys jobs, or undermines our ability to compete. As part of this reform, we will eliminate the Carried Interest Deduction and other special interest loopholes that have been so good for Wall Street investors, and people like me, but unfair to American workers. Tax simplification will be a major feature of the plan. Our current tax code is so burdensome and complex that we waste 9 billion hours a year in tax code compliance. My plan will reduce the current number of brackets from 7 to 3, and dramatically streamline the process. We will work with House Republicans on this plan, using the same brackets they have proposed: 12, 25 and 33 percent. For many American workers, their tax rate will be zero. While we will develop our own set of assumptions and policies, agreeing in some areas but not in others, we will be focused on the same shared goals and guided by the same shared principles: jobs, growth and opportunity. These reforms will offer the biggest tax revolution since the Reagan Tax Reform, which unleashed years of continued economic growth and job creation. " (Trump, 2016)
 
TAXES: "Under my plan, no American company will pay more than 15% of their business income in taxes. Small businesses will benefit the most from this plan. Hillary Clinton’s plan will require small business to pay as much as three times more in taxes than what I am proposing, and her onerous regulations will put them totally out of business. I am going to cut regulations massively. Our lower business tax will also end job-killing corporate inversions, and cause trillions in new dollars and wealth to come pouring into our country – and into cities like Detroit. To help unleash this new job creation, we will allow businesses to immediately expense new business investments. No one will gain more from these proposals than low-and-middle income Americans. My plan will also help reduce the cost of childcare by allowing parents to fully deduct the average cost of childcare spending from their taxes. We are also going to bring back trillions of dollars from American businesses that is now parked overseas. Our plan will bring that cash home, applying a 10 percent tax. This money will be re-invested in states like Michigan. Finally, no family will have to pay the death tax. American workers have paid taxes their whole lives, and they should not be taxed again at death – it’s just plain wrong. We will repeal it." (Trump, 2016)
 
REGULATION "As with taxes, I will have one overriding goal when it comes to regulation: I want to keep jobs and wealth in America. Motor vehicle manufacturing is one of the most heavily regulated industries in the country. The U.S. economy today is twenty-five percent smaller than it would have been without the surge of regulations since 1980. It is estimated that current overregulation is costing our economy as much as $2 trillion dollars a year – that’s money taken straight out of cities like yours. The federal register is now over 80,000 pages long. As the Wall Street Journal noted, President Obama has issued close to four hundred new major regulations since taking office, each with a cost to the American economy of $100 million or more. In 2015 alone, the Obama Administration unilaterally issued more than 2,000 new regulations – each a hidden tax on American consumers, and a massive lead weight on the American economy. It is time to remove the anchor dragging us down. Upon taking office, I will issue a temporary moratorium on new agency regulations. My running mate, Mike Pence, signed a similar order when he became governor of Indiana. This will give our American companies the certainty they need to reinvest in our community, get cash off of the sidelines, start hiring for new jobs, and expanding businesses. I will also immediately cancel all illegal and overreaching executive orders. Next, I will ask each and every federal agency to prepare a list of all of the regulations they impose on Americans which are not necessary, do not improve public safety, and which needlessly kill jobs. Those regulations will be eliminated. We are in a competition with the world, and I want America to win. When I am president, we will." (Trump, 2016)
 
“Too few Americans are working, too many jobs have been shipped overseas, and too many middle class families cannot make ends meet. This tax plan directly meets these challenges with four simple goals: Tax relief for middle class Americans: In order to achieve the American dream, let people keep more money in their pockets and increase after-tax wages. Simplify the tax code to reduce the headaches Americans face in preparing their taxes and let everyone keep more of their money. Grow the American economy by discouraging corporate inversions, adding a huge number of new jobs, and making America globally competitive again. Doesn’t add to our debt and deficit, which are already too large” (Trump, 2016)

"My 5-part tax plan involves reforming the income tax. The government confiscates way too much of your paycheck. The tax code is also a very complicated system that forces Americans to waste 6.1 billion hours a year trying to figure it out.

What does that tell you? It tells me that it's time we restore simplicity & sanity to the income tax. Here's my income tax plan:

  • Up to $30,000, you pay 1%
  • From $30,000 to $100,000, you pay 5%
  • From $100,000 to $1 million, you pay 10%
  • On $1 million or above, you pay 15%

It's clear and fair. Best of all, it can be filled out on the back of a postcard and will save Americans big bucks on accountants and massive amounts of time wasted attempting to decipher the tax code.

Our country is hungry for real tax reform. That's why we should implement the 1-5-10-15 income tax plan. And we need to enact [the rest of] my 5-part tax policy: kill the death tax; lower the tax on capital gains & dividends; eliminate corporate taxes; and a 20% import tax."  (Trump, D. (2011) Time to Get Tough: Making America #1 Again. Regnery.)


 

 

Gary Johnson (L)

"Well, I'd like to scrap the entire tax code. I'd like to eliminate income tax. I would like to eliminate corporate tax. If we do that we can also abolish the IRS. Look, I think there's a possibility Congress could do that, but at the end of the day they're going to replace it with something. Well, I think a national consumption tax is a really fair way to move forward in this country. It would be easy to administrate. Nobody's going to avoid a consumption tax. Hey, bottom line, you make more money, you're going to consume more. So I suggest-- Well, and there's also a justified rap that a consumption tax is regressive to those on the lowest end of the scale. Well, what I was going to say is, look at the fair tax as a template for how to dot the I's and cross the T's in accomplishing one federal consumption tax. The way that the fair tax deals with that is they issue everyone a prebate check, every month, through the Social Security Administration, that allows everyone to pay the fair tax up to the point of the poverty level." (Johnson, 2016)

"Well, as president of the United States, looking to get elected president of the United States, count on me to sign on tax policy that would reduce or simplify taxes in this country. But if I could wave a magic wand, I would eliminate income tax, I would eliminate corporate tax, I would abolish the IRS, and I would replace it all with one federal consumption tax. If we have zero corporate tax in this country, I believe that tens of millions of jobs will get created in this country for no other reason - why you would start up, grow a business anywhere but the United States, given a zero corporate tax rate? And what do you replace all that with? Like I say, you replace it with one federal consumption tax. I suggest that everybody look at the fair tax as a way to dot the i's and cross the t's on how you would accomplish one federal consumption tax. That's up for grabs. Whether it's the exact percentages or exactly the way that the fair tax proposal does that, but it is laid out very specific." (Johnson, 2016)

ABOLISHING THE IRS: “If I could wave a magic wand I would abolish income tax, corporate tax, the IRS, and I would replace all of it with one federal consumption tax” (Johnson, 2016)
 
EMERGENCY ECONOMIC STABILIZATION ACT OF 2008/WALL STREET BAILOUT: TAX REFORM: “Today’s federal tax code does all the wrong things. It penalizes productivity, savings and investment, while rewarding inefficiency and designating winners and losers according to political whim. For far too long, tax laws have been used not just as a means to collect needed revenues, but as a weapon with which to manipulate our behavior, create and destroy industries and fulfill politicians’ dreams of social engineering. The result is a tax code that is more than 70,000 pages long enforced by a government agency with almost 100,000 employees. It is nothing less than a massive deployment of government force on our lives, our finances and our freedom. Governor Johnson advocates the elimination of tax subsidies, the double taxation embodied in business income taxes, and ultimately, the replacement of all income and payroll taxes with a single consumption tax that will allow every American and every business to determine their tax burden by making their own spending decisions. Taxes on purchases for basic necessities would be “prebated”, with all other purchases taxed equally regardless of income, status or purpose. Many leading economists have long advocated such a shift in the way we are taxed, and Gary Johnson believes the time has come to eliminate the punishing tax code we have today and replace it with a system that rewards productivity, investment and savings. The IRS as we know it today would no longer be necessary, and Americans would no longer need to live in fear of the force of government being wielded under the guise of tax collection" (Johnson, 2016)