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INCOME TAX REFORM: FANTASY TO REALITY

January 30, 2016

https://www.washingtonpost.com/posteverything/wp/2016/01/28/we-desperately-need-major-tax-reform-or-maybe-not/?postshare=9951454150648936&tid=ss_fb-bottom

We desperately need major tax reform! Or maybe not…
Fundamental tax reform is a fantasy. Now, let’s get to work on improving our tax code.
By Jared Bernstein January 28
“So, let’s stop being distracted by the “fundamental reform fairy” and start pursuing incremental reforms:
— Close the carried interest loophole that privileges the earnings of investment fund managers. In a town where every tax break has a defender, that one stands alone. (Sen. Chuck Schumer used to support it on behalf of his constituents, but he’s backed off; even Trump’s against it!) Can we please put it out of its misery?

— Block corporate tax inversions, where U.S. companies merge with overseas companies just to move their tax mailbox to a low tax country.

— End the “step-up basis” provision by which the wealthy can pass capital gains on to their heirs tax free.

— Stop incentivizing multinationals to keep, or at least book, their profits overseas by letting companies repatriate their foreign earnings after paying a minimum tax (the Obama administration suggests a 19 percent minimum rate).

— Increase the EITC (“… a refundable tax credit for low- to moderate-income working individuals and couples for childless adults…” Wiki.), who now get very little from it, an idea supported by both Obama and House Speaker Paul Ryan (R).

Above, I called these “tweaks” as opposed to major reforms. Though the contrast is apt, it’s the wrong word, as any such changes are hugely heavy lifts. But heavy lifts are at least in the realm of the possible. And that’s the right realm to be in if we actually want to improve our tax code.” Jared Bernstein.

THREE ADDITIONAL “TWEAKS” to make a great tax plan a “more perfect tax plan”.(by Justaluckyfool)

—Federal Personal Income Tax for any individual income up to $75,000 shall be ZERO. Joint income up to $150,000 shall be ZERO.

—FICA payment will no longer be withheld or payable for individual income up to $75,000. Joint income up to $150,000. The 15% must be paid as income in take home pay ( actually producing an increase in wage without any increase in cost).

Please ask “The Tax Foundation”,” What will this cost ?”
JUSTALUCKYFOOL will prove that it can be paid for “by reaising money from somewhere else.”

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