When will income tax change?

Question

1. When do you think the income tax system will change? 10 years...20 years....?

2. If it does happen, what do you think will change? How do you think it will work? Flat tax...fair tax act...

Answer 1

Changes are made to the income tax system every year. Some are based upon existing law, such as changes in the standard deduction and personal exemptions. Others require an Act of Congress to change the underlying law.

It's impossible to predict with any accuracy what Congress may do in the future. That said, with the change of the political makeup of Congress in 2006 and the strong likelihood that those changes may continue in 2008 along with a highly likely change in the party in the White House it's likely that we'll see some changes in tax rates for wealthy taxpayers as well as possible reductions in taxes for middle class taxpayers.

As far as any major overhaul of the income tax system, that is much less likely. And as far as anything as radical as the so-called "Fair Tax" or "Flat Tax" being implemented, the chances are virtually zero.

Answer 2

1. It changes every year, but only little bit. I don't anticipate any wholesale changes in the coming decades.

2. If there is a major change, I'm thinking it would either be in the form of a national sales tax (on top of a traditional progressive income tax) and/or major changes in the taxation of various types of investments.

Overall, we'll probably stick with the progressive income tax system indefinitely as our primary source of federal revenue. I think that we will never, ever see a flat tax.

Answer 3

Probably it'll never change. It's been this way since 1913, almost 100 years.

Answer 4

It is unlikely it will change soon, except to increase the burden on WORKING people.
It will ultimately collapse, the number of "needy" is growing rapidly, and liberals pass more and more laws about how I need to pay for all of their services and kids. Eventually the money is going to run out - then suddenly all those welfare losers will have to get their own money, chaos will ensue.