Should the Gov't Halve Income Taxes?

With the midterm elections drawing closer, politicos and economists are debating the merits of extending the about-to-expire Bush tax cuts. Enter Newsweek’s Keith Libbey and Evan Thomas, who offer a "Clean Slate," plan that would halve income taxes for most Americans. Libbey and Thomas advocate for the elimination of tax deductions and breaks that have typically in the past helped the top 1 percent of earners avoid paying Uncle Sam. How would the government compensate for a decidedly tremendous loss in revenue? To close off the gap that would arise from an income-tax cut, the writers suggest there be a 12 percent tax on consumer goods, generating almost $600 billion.