While America awaits details on President Trump’s tax cut plan, one Republican lawmaker from California is proposing to fundamentally change the tax code.
Continue Reading Below
“We are getting rid of the income tax. We are doing something that hasn’t been done in 100 years. We are moving towards a consumption system, to a cash flow system,” Rep. Devin Nunes told the FOX Business Network’s Stuart Varney.
This would work by subtracting income from expenses and paying a tax on whatever is left over, he said.
“It’s a very simple system, yet it is a dramatic departure from the confusing tax code that we have now,” Nunes said.
The system is also more business friendly and would put America ahead of other nations, in his opinion.
When Varney asked about getting “opposition to that kind of pivot,” Nunes replied, “Anytime you do tax reform there’s enormous opposition. There’s a reason why we haven’t passed major tax reform since 1986.”
Nunes added the most important winners of the proposal would be wage earners and small business.