(CNSNews.com) – The 2012 Republican Party platform states that the party would accept a value-added tax (VAT) or other consumption-based tax only if the 16th Amendment authorizing the federal income tax were repealed.
“In any restructuring of federal taxation, to guard against hypertaxation of the American people, any value added tax or national sales tax must be tied to the simultaneous repeal of the Sixteenth Amendment, which established the federal income tax,” the platform says.
The section mentioning the VAT or national sales tax is a holdover from the 2008 platform, which included nearly identical language premising a national consumption tax to the repeal of the 16th Amendment.
The consumption tax section is part of the platform’s overall section on tax reform that calls for a “flatter and fair” tax code.
“Our goal is a tax system that is simple, transparent, flatter, and fair,” it says.
“To that end, we propose to: Extend the 2001 and 2003 tax relief packages—commonly known as the Bush tax cuts—pending reform of the tax code, to keep tax rates from rising on income, interest, dividends, and capital gains; Reform the tax code by reducing marginal tax rates by 20 percent across-the-board in a revenue-neutral manner; Eliminate the taxes on interest, dividends, and capital gains altogether for lower and middle-income taxpayers; End the Death Tax; and Repeal the Alternative Minimum Tax.”
The tax reform segment also calls for a reduction in corporate taxes and a change in how foreign-earned income is taxed, calling for regional tax rates to encourage companies to repatriate revenue they earn abroad.
The platform also calls for a permanent research and development tax credit for businesses along with the repeal of the business alternative minimum tax.