Tax Update Blog: Permalink
« Previous · Tax Update Blog Home · Next »
Bipartisan tax reform?
February 24, 2010
Two Senators, one Crip and one Blood Democrat and one Republican, have proposed a tax reform plan. It features a reduction in the corporate rate to 24% and a reduction three-tiered individual rate system (15%, 25%, and 35%). It would allow small businesses to expense inventory and equipment, while repealing the silly Section 199 deduction and some other breaks.
It has some interesting ideas, but it needs to be much more ambitious to really simplify things. Also, reducing the business rate well below the individual rate is a recipe for complexity as people would shift income to corporate structures.
Why not have corporations and individual taxed at the same top rate (30% sounds good to me), but allow corporations a full deduction for dividends paid, while taxing them at ordinary rates to shareholders? It would solve the double-tax problem of corporate tax while eliminating the tax law bias for debt. Maybe there's a reason why this is a bad idea, but I haven't seen anybody explain why.
More coverage:
TaxProf Blog
TaxVox
Tax Policy Blog
Peter Pappas
Bookmark: del.icio.us • Digg • reddit
TrackBack
TrackBack URL for this entry:
http://www.rothcpa.com/mt/contages.cgi/1600
Listed below are links to weblogs that reference Bipartisan tax reform?:
» Is it time for tax reform? from Don't Mess With Taxes
The answer to that question, especially soon after most of us have completed our annual tax filing task, is a definite yes. The practicalities of tax reform, however, always seem to fall prey to Congressional tinkering that makes for good political bul... [Read More]
Tax Updates
Subscribe to Tax Updates
The items included in the Tax Update Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation.
Joe Kristan writes the Tax Update items, and any opinions expressed or implied are not neccesarily shared by anyone else at Roth & Company, P.C. Address questions or comments on Tax Updates to
Search Tax Updates
Friends and Neighbors
Economics Nerds
Hard-Core Tax Nerds
Gigablogs
Insurance Folk
Goners
Legislation
Tax Update Data Feeds
