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Sen. Mike Lee, (R-Lee), says the American people don’t understand current tax codes in relation to the fiscal cliff.
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Did you finally time for congress to consider a flat tax.
Would the same right across the board enable all of us to pay what -- Obama calls our fair share.
My next guest just met with fellow members of congress top economists business leaders.
All pushing for a flat tax is the only way to reform the tax -- joining me now -- senator Mike Lee.
Senator.
First of all I'm really glad to hear that you had this meeting.
How did it go who was there.
What was it what -- out of.
Well the meeting was led by congressman -- Kilmer and by Steve Forbes and he was basically just -- discussion about the fact that we ought to move in the direction of a single rate tax system.
One that provides more transparency to the American people about the true cost of government.
We sometimes forget that fact that our tax system serves two functions one is to provide revenue for the government but the other is to make sure that voters understand what government costs.
And our current tax code performs the first function relatively poorly producing a lot of revenue some years and suffered much and others and it performs the second function even worse than that because it obscures the true cost of government to a lot of people.
Who who while they might be convinced that they're paying nothing or very little in taxes.
Actually pay a lot for government they just paid for through high prices on goods and services and diminish wages and unemployment.
Well listen -- it -- all due respect to you and I'm glad you're doing this.
But what's the what's the pushed back -- the feedback you're getting from fellow members I've always thought.
The reason why congress doesn't do -- flat -- is it takes a lot of the power.
Of the person the internal revenue code away from you and your fellow.
Members.
Which is exactly why we ought to do it and and you're right I think that's a lot of the reason why this.
And it has been an issue that hasn't.
Move forward farther than it has to this point but the American people or starting to understand all the benefits that could come from this.
And I think it's an idea whose time has come it's an idea.
That we need to -- -- Especially as we're dealing with the fiscal Brooklyn -- problems that we're dealing with right now.
Are you getting any support -- -- people look at you cross action but yet talked to them I'm talking about fellow summer.
See if there are a lot of Republicans -- in both houses of congress who feel that.
This is something that we need to do that they're still a lot of doubt out there are a lot of people just respond to a by saying -- great idea.
But it'll never pass but when we get to a moment like this when we have where we have a president.
Trying to pit one group of Americans against another by threatening only a small segment -- the tax increase.
That this highlights this underscores the need for a flat tax system.
And this gives us an opportunity to explain that even a tax increase on the rich ends up hurting the -- That's why we oppose it it's not as we're concerned about the rich it's because we're concerned about the people who work for the rich who lose their job.
-- but I that was -- -- I've said before what you just said about about the single -- path that I get criticized for you know not being more positive about this.
You it probably won't pass in today's environment but is this a strategy that you have to try -- get the conversation.
Get the noise going on this or that may -- people do it.
-- down the road.
Yes yes look Rome wasn't built in a day and we're not going to transition into a single rate tax system overnight.
But I do think it is a good long term objective I think it's something that we need to have in the truth is if you ask most Americans.
-- what they think about how much government ought to be able to take from them.
Most Americans it and -- the right questions will eventually say yeah everybody ought to just tape based on the same percentage.
Aren't the big debate quite and that is what what was the rate that you talked about was there a consensus of 10% 40% what was.
You know there's there's not a consensus rate because there are a thousand different formulations for this.
I've heard -- disgust as low as 12%.
Other recent discussed is high is.
The low to mid thirties for a flat tax proposal.
It it all depends on whether or to what extent do you still recognize any deductions.
Or grant any credits.
And -- that will influence what the rate needs to be.
But we need to start building consensus around the common idea that we need one rate that all Americans can understand -- -- -- tax code that occupies tens of thousands of.
This year you're right it sounds simple but exactly complex when -- figure out all the different ways of people make money and so forth.
That are likely -- encourage you weren't paying glad to see you're doing -- thank you so much -- for being on the program.
Thank you you -- but --
