Background

Sensible Tax Reform: Fair, Simple and Effective is based upon the work of Christopher M. Korth, Professor of Finance and International Business at Western
Michigan University. Dr. Korth is a consultant with businesses, both in the United States and abroad, and was the former Chief International Economist with the 1st National Bank of Chicago. He received his doctorate from Indiana University.

Both his business experience and his academic work convinced Dr. Korth that the American federal tax system is a disaster. Indeed, it is dysfunctional. While claiming to be a fair and efficient tax-collection system, it is in fact both unfair and very ineffective. It hurts families. It damages companies. It hurts the entire American economy.

The United States needs a new federal approach to taxation in the 21st Century. The new tax system needs to free American companies from the current oppressive federal taxes that make it very difficult for them to compete against foreign companies, which leads to massive international trade deficits, huge foreign debt and millions of lost jobs.

This new tax system must be fair to all Americans, no matter how poor or wealthy. It must be simple, replacing the 67,000 page monstrosity that we now have and which no one truly understands. The new tax laws must greatly increase the effectiveness of the entire American economy.

Dr. Korth has designed a tax program which will replace the entire existing federal tax with a fair-and-simple income tax which will only be paid by those with more than $1 million of income, together with a federal retail consumption tax (FCT). The FCT will be the core of the system. The federal income tax on very-high incomes will help to maintain fairness. Our current tax systems allow sophisticated and influential taxpayers, both corporate and individual, to use complicated deductions, exemptions, exclusions, credits, phase-ins, phase-outs and preferential tax rates to make it possible for them to pay lower taxes than many others with similar or even lower incomes. Sensible Tax Reform: Fair, Simple and Effective will level the playing field for both businesses and individuals. Everyone will be subject to the same rules, which will be fair, simple and effective.

Christopher Korth can be reached at comments@sensibletaxreform.org.