Gary Johnson on TaxesADAM CAROLLA: I was reading about your platform here, and that’s essentially what I’m into as well. There’s essentially many topics, but let’s just start with taxes. How would you ‘reconjigur’ the tax situation? And what do you see is the problem with the current, the current system?
GARY JOHNSON: Well, first of all, I’m running for president of the United States. As president of the United States, I’m gonna sign on to anything that makes things better. When it comes to taxes, that would be lower taxes. I do think that the corporate tax rate is too high, so what I’m suggesting, and again, this is suggestion, is eliminating income tax, eliminating corporate tax, because you do that, you would be able to abolish the IRS and replace all of it with one single federal consumption tax.
CAROLLA: How does the consumption tax work?
JOHNSON: Well, there is a proposal before for Congress. It’s called the Fair Tax. I don’t think there are any fair taxes, but it’s called the Fair Tax. You can look it up online , Fair Tax. But it i's and cross the t's on how you accomplish the federal consumption tax. Because there would be no corporate tax, I do believe that this would create millions of jobs in the United States. Tens of millions of jobs in the United States. Why would start and grow a business anywhere other than the United States given a zero corporate tax rate?
And people that make more money consume more. It’s revenue neutral. It’s not cutting taxes, it’s not raising taxes. The proposal is designed to be revenue neutral. And imagine life without the IRS.
5 May, 2016: The Adam Carolla Show (1:03:31)
GLENN THRUSH: Do you feel the same way about the mortgage tax deduction and federal subsidies for housing?
GARY JOHNSON: 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…
THRUSH: Well, I make one counter-argument on that, and that is having covered poverty for a while, the highest percentage consumers tend to be on the lowest end of the economic scale, and one of the issues you're dealing with when you're dealing with very wealthy people is they tend to create what used to historically be called stagnant pools of capital, where they hoard. So oftentimes the very wealthy do not consume; they hoard, so it's hard to sort of tax them when they're not consuming.
JOHNSON: 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.
3 June, 2016: POLITICO's Glenn Thrush interviews Gary Johnson
GARY JOHNSON: What I’m talking about is balancing the federal budget. What I’m talking about is throwing out the existing U.S. tax structure and replacing it with the Fair Tax. And for those that are watching, get online, FairTax.Org, this has been around a long time, but it is what it says it is – a fair tax that replaces all other taxes. Does away with the IRS, does way with income tax, does away with corporate tax. Really establishes this country as the only country to do business.
KRISTINE FRAZAO: And yet, with the Fair Tax you’d still be able to cover a lot of these programs that so many people depend on in this country?
JOHNSON: Well, it’s revenue neutral. So, spending still needs to be reduced by 43%. So I’m also – across the board. I am promising to submit a balanced budget to Congress with my first budget, and that would involve cutting government spending by 43%.
FRAZAO: I mean that’s nearly half of government spending.
JOHNSON: That’s near. Well, of course that’s what we’re currently borrowing and printing for every dollar that we’re spending. And that is not sustainable, and I maintain that if we don’t do it, if we don’t fix this, which I think is actually doable, but if we don’t fix it we’re gonna find ourselves without a country. We’re gonna find ourselves in the midst of a monetary collapse where all the money that we saved, isn’t worth a thing.
19 August, 2011: Gary Johnson speaking to Kristine Frazao on RT America