and is sure to be controversial, heated and very partisan. Hi CF, is this a subject that would interest you and this board? I'd like to throw out a few thoughts. I make some assumptions:
1) a flat tax is unfair and won't work
2) the Nat'l income tax must be graduated
3) a national consumption tax (non vat) is unfair and won't work.
The first idea I'd like considered is the gradual elimination of exemptions for all dependents. It's long been my belief the the Gov't should not use the tax code (or programs such as food stamps, school lunch, welfare etc.) to encourage larger families. I know that's cold, but I don't think that's Gov't's roll. Because larger families use more resources than smaller ones, if anything they should pay more, not receive more.
I'd immediately end the deduction on mortgage interest on second homes and consider placing a cap on the interest deduction for primary residences to $40,000.
I don't think "unreimbursed employee expenses" should be deductable, let the employer pay them. Travel expenses for the unemployed should continue deductable.
The tax code should encourage Employee benefits to be fair and equal for all. A 50% match on 401Ks up to 20% of income should not receive the same deductability as a 25% match to the 10% contribution. Consider counting excessive employee benefits as income - as the personal use of a company car currently is.
The home office deduction is too easily abused.
I don't think personal dividend income should be taxed at all.
Generally reduce the complexity of the individual tax code by eliminating deductions as much as possible.
I'm not as familiar w/ Corp tax code but the first place to start is where the big money is - off shore tax havens such as the Cayman Islands. Someone more knowledgeable must make the change necessary to make those Corp's pay their fair share. Same w/ repatriation from multi-nationals.
Can, will any change be made? It's sure to be extremely difficult but I hope so.
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