Former Internal Revenue Service Commissioner Mark Everson sees worrying flaws in the American tax system.
The Alliantgroup vice chairman and declared 2016 Republican presidential candidate has thrown his weight behind a tax overhaul that he believes will funnel more money through the U.S. economy. Everson contends that a consumption, or value-added, tax can take 150 million people off the income tax roll. (Tweet this)
"Think of all the millions who are sort of pulling their hair out right as we speak," Everson said Wednesday in a CNBC "Squawk on the Street" interview.
Everson referred to Wednesday's federal tax filing deadline. A consumption tax, which is levied in dozens of countries around the world, takes a cut from spending on goods and services.
Everson, who served as IRS commissioner 2003-07, said that his tax model would not phase out the income tax system. It would continue to levy the fee on higher-income Americans but at a lower rate, he said.
Critics of a value-added tax contend that it discourages spending and consumption. But Everson downplayed fears that it would force consumers to spend less.
"You're going to bring in as much money in total but you'll retain the relative burden," Everson said.
He noted that he wanted to get rid of "shenanigans" ingrained in the corporate tax system.