Saturday, August 25, 2012
How 'Bout This for Tax Simplification?
a) Three rates; 10-15% (I'm providing ranges here - the exact amounts to be determined through negotiations) on the first $30,000, 20-25% on the next $470,000, and 30-35% on everything over $500,000.......b) Capital gains and interest are treated as regular income but they will be indexed for inflation (capital gains are often caused by inflation and inflation is often caused by government - too much spending and printing of money).......c) The corporate income tax will be reduced to a top rate of 20% and NO loopholes will be allowed (that way a company like UPS will pay the same rate as a more politically "connected" company like GE does).......d) Everybody gets the standard deduction, an exemption for themselves and for each of their dependents, and a second exemption if you're over 65-67.......e) The only other deduction that will be allowed will be for state and local taxes (you shouldn't have to pay taxes on something that you've already paid taxes on). Everything else will be eliminated.............There. It's simple (1-2 pages, tops), progressive, and not inordinately burdensome. I personally think that it would work.