Will you support Congressman Rangel’s Tax Bill which would make the Tax Code Simpler & Fairer?

Question

It makes the tax code a little simpler for individuals by repealing the AMT after 2007 and expanding the standard deduction, and a bit simpler for businesses, who will trade
unnecessary tax breaks for a lower corporate tax rate. The bill’s corporate loopholeclosing measures would enhance the economy overall because fewer business decisions would be made for tax reasons (to exploit loopholes) rather than sound
economic reasons. It makes the tax code fairer by providing a larger standard deduction and tax credits low-income working people and by scaling back the Bush tax cuts for the wealthy.
Finally, the bill stops the dangerous pattern of the Bush administration of cutting taxes more and more and putting the cost on the national credit card. Instead, the bill pays
for the tax cuts it provides to the vast majority of Americans in a responsible way.
http://www.ctj.org/pdf/rangelbill.pdf

Thoughts?

Answer 1

Finally, someone who sees the importance of spending as you go. Bush has called the Democrats "kids with a new credit card" lately, which is RIDICULOUS since BUSH is the one spending borrowed money at a high interest rate with no way to pay it back. Support Congressman Rangel's Tax Bill, it's the AMERICAN thing to do!

Answer 2

Hmmm.... I took a look at the document. It's a biased ananlysis to be sure, and I'm not sure it's completely accurate.

Increasing the standard deduction - for it. I'm all in favor of cutting taxes for the the poor and middle class. If we can take more of the poorer people off of the tax rolls, it gets my support.

Eliminating the AMT - Mostly for it. I think it still has a place, but needs to be seriously updated. Maybe hitting people making $500k plus a year.

EIT for childless workers - I somewhat opposed to it. Childless workers have much more flexibility in living arrangements. I'm hesitant to have the gov't start giving serious cash payments to more of them. Why should we be giving $900 for a single person making $12k a year. That might be someone working part time and living at home? This needs to be thought through some more.

Elimination of LIFO? This may bring about a one time gain in tax revenues. But as the example says, if an oil company buys a barrel of oil today for $45 and they have some previous oil bought for $30, if they are forced to charge off the $30 oil now, eventually they will being charging off the $45 barrell under FIFO. Essentially, once they've caught up, the effect will be nil to tax revenues. If oil prices decline, which is fairly likely, it will be even worse for the tax revenues, as oil now bought at $30 is charged off at $45. That will slash oil profits and result in far less tax revenue. Basically, I don't think this makes much of a difference in the long run.

Of course, the bonus is held to last. The Sur-tax on the rich. It always boils down to soak the rich doesn't it? Anyone earning over $200k is hit with a special 4% surtax on top of their normal tax. Just once I'd like to see a politician of either party suggest giving tax cuts to the poor and middle class, and paying for them with a decrease in gov't spending.

Answer 3

Can't be done. I've talked to many Tax lawyers, accountants, ect. and they've all said its impossible. Would be simple at first, but there are so many issues that it becomes complicated no matter what tax system you adopt. You could have a flat tax and the tax code would still be thousands of pages long. Besides all the complicated issues involved, there is also political problems that arise. Every Senate Finance committee member or House Rep of Ways and Means, wants to make a name for himself by giving a tax break or change every year. Simply put, it cannot be done.

Answer 4

by way of fact the wealthy will in no way circulate alongside with that. The honest tax could be mind-blowing - anybody pay in a proportion - the very comparable proportion - of their annual earnings. it particularly is it. however the wealthy choose their tax shelters, their write offs, etc. in the event that they don't get those, then the contributions to charities will circulate way down, and persons would be much less keen to area with their money which could at last circulate to assist this usa (purchase greater residences, vehicles, etc). i might particularly like a honest tax. i think of that putting it to a public pollwould be a mind-blowing situation - in simple terms to work out what comes of it. yet I assure you that maximum of might come out against it in the tip.

Answer 5

Not a chance. Until government starts doing something about their reckless wasteful spending I will not even consider supporting a tax bill that increases taxes on any Americans in any way. As stupid as deficit spending is, it's still not as stupid as allowing government to waste our money and then repeatedly raise taxes to replenish their ever growing mismanaged piggy bank.

Answer 6

If this is the same Tax Bill the Congressman Rangel of NY submitted that will raise taxes then NO I will not support it.

Answer 7

I have a simpler solution for the tax code:

(1) The government stops spending like a drunken playboy (S-Chip? Social Security?).

(2) We institute a flat tax.

The amount of money going into the black hole of government can be spent efficiently within the market.

Answer 8

no how about just a consumption tax