Tax Reform

From MSNBC: What do you guys think?

Tax reform recommendations
Brief explanations of the two proposals by the President’s Advisory Panel on Federal Tax Reform:
— SIMPLIFIED INCOME TAX: Like the current system, this option levies taxes on individual and business income. The panel stripped out most of the tax deductions and credits available to taxpayers and added back only those that the panel members believed would encourage certain behaviors, such as saving, charitable giving or home buying. The panel said it wanted to shorten tax forms and remove some of the mystery involved in tax calculations.
— MODIFIED PROGRESSIVE CONSUMPTION TAX: To individual taxpayers, this system would appear almost identical to the simplified income tax. But, because of changes in the way businesses would be taxed, it marks a shift toward a consumption tax. Businesses could deduct their capital spending and wages from taxation, but they would lose a deduction for interest payments. This consumption tax would act indirectly, unlike a national retail sales tax. It differs from a pure consumption tax by applying a 15 percent tax on capital gains and dividends paid to individuals, a modification the panel made to prevent wealthy taxpayers from getting a much larger benefit than others.

3 Responses to “Tax Reform”

  1. I wonder who this helps. A tax panel appointed by the President, hmm, what do you think?

  2. From what I’ve read so far, when you figure it all out, both shift the tax burden futher south. That is, down the ladder, to you and me, all hidden in the guise of reform. “Look out kiddies, your going to get hit again.”

    I’d like to add here as long as I’m at it a quote from Voltaire I read in the paper…….”Those who can make you believe absurdities can make you commit atrocities”.

  3. #3 by Randalf the Grey

    Man, could I launch into another political rant here, but no.

    Two congressmen are sitting in a bar and having a heated
    discussion. One pounds his fist on the table and says, “You’re
    lying !” “Of course I’m lying”, says the other, “but hear me out.”

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