Interesting article here. Author says the current tax code is so unloved that it might be politically possible to toss the whole damn thing and start over.
Good idea. Here are a few thoughts of mine on how to do it.
1. KISS. Keep it simple stupid. Every word, phrase, sentence, or paragraph of the tax code makes it harder for us average Joe's to do our taxes. And offers more welfare to lawyers. Entire US tax code should be no longer than the US Constitution.
2. No exemptions, deductions, credits, for anything. Tax is a straight percentage of your income. That ought to get rid of 10,000 pages of tax code. Scratch exemptions/deductions for children, mortgage interest, marriage, oil depletion, and God knows what else.
3. Income is income. Doesn't matter if it comes as wages on a W2 or from selling stock, it's income and pays taxes at the same rate. That will clear out another 10,000 pages of the tax code and put an end to fruitless squabbling about ordinary income versus capital gains.
4. Everyone, no matter how poor, pays something. The tax rate for the really poor can be really small, but they must contribute something so they understand the government bennies they enjoy have to be paid for by someone. No free riders.
That's for the personal income tax. Corporate income tax is another bucket of worms, too complex to deal with here.
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