The (Hidden) Truth About Rand Paul's Tax Proposal

Ramesh Ponnuru writes:

The plan may look as though it cuts middle-class taxes because he would not apply his flat tax to families of four making less than $50,000 and he abolishes the payroll tax. But the plan taxes everyone by imposing a European-style Value-Added Tax, although he does not say it explicitly. He has a 14.5 percent tax on business activity without the deduction for wages that today’s corporate tax includes. That means wages have to fall.