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Tax Reform Carnival!

October 21, 2011

I haven't heard about the massive parties scheduled to honor the 25th Birthday of the Tax Code tomorrow, but I've been out of town, so I probably just missed the news. No doubt they will look something like this:

20110317-2.png

If you choose a more sedate way of observing the holiday, the tax blog world is all over it already, so there's your party. I'll round up their observations in this impromptu Tax Reform Carnival. I'll add to this list of blog observations as I notice them; if I miss yours, please put the link in the comments and I'll add it to the party.

Going Concern, Joe Kristan: Who's Afraid of Tax Reform?
Tax Prof: Graetz: Tax Reform 1986 -- A Silver Anniversary, Not a Jubilee
TaxVox, Howard Gleckman: Five Lessons from the 1986 Tax Reform Act
TaxVox, Gene Steurle: Does the Tax Reform Act of 1986 Offer Lessons for Future Reform?
Robert D. Flach (Forbes guest post): Wandering Tax Pro Remembers The Tax Reform Act of 1986
Tax Policy Blog, Scott Hodge: Happy Anniversary Tax Reform Act of 1986
TaxGrrrl: I'm From the Government and I'm Here to Help

Update, 10/22

TaxProf, Forbes: Today's 25th Anniversary of the Tax Reform Act of 1986
Kay Bell, 25 years of tax reform. More on the way?

Tags: ..........

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Comments

SUBJECT: Cains 9-9-9- plan vs my 10-10-15 tax and job plan. Cains needs to be a 9-9-9-9 plan then it still screws the poor and middle class. PERRY'S FLAT TAX PLAN LACKS THE ABILITY TO GO AFTER UNDECLARED AND ILLEGAL WEALTH. I sell this as Obama's 10-10-15 plan, hoping he will take a look at it.
Subject: a better tax and job reform. a 10-10-15 plan that will work
Subject: Challenging Cain's 9-9-9 plan vs a tax payers 10-10-15 plan which will work.
SUBJECT: MY 10-10-15 TAX AND JOB REFORM PLAN COMPARED TO CAIN'S 9-9-9 PLAN
Subject: CANDIDATE CAIN HAS A 9-9-9 PLAN, I HAVE A 10-10-15 PLAN FOR TAX
REFORM AND JOB CREATION
I AGREE WITH YOU THAT CAIN'S 999 PLAN IS FLAWED. MY PLAN VS CAIN'S PLAN IS THAT MY PLAN COVERS THE CAIN SHORT COMINGS EXP.,I LEAVE SS AND MEDICARE SEPERATE FROM TAX REFORM. SS IS MADE SOLVENT BY REMOVING THE CAPS WITH A DONUT HOLE PROVISION FROM $106,000 TO $406,000. RESTARTING STARTING AT $406,000 TO $10 MILLION OR WHAT EVER IT TAKES TO MAKE IT SOLVENT FOREVER. CAINS PLAN AS I UNDERSTAND IT LEAVES NO SOURCE FOR FUNDING FOR SS OR MEDICARE UNLESS HE WANTS TO CHANGE HIS PLAN TO HIS( 9-9-9-9) PLAN WHICH CHANGES SS AND MEDICARE FROM 15.2% TO 9% OR 9.2% FOR EMPLOYEE WHICH EVEN AT THAT LEAVES IT UN- FUNDED. SS AND MEDICARE FOR A SMALL BUSINESS IS 15.2% . THAT EATS UP THE 9% SALES TAX, AND TAKES 6.2 % FROM THE FLAT TAX LEAVING 2.8% AND 9% CORPORATE TAX FOR EVERYTHING ELSE. JUST DON'T ADD UP. AS FOR HIS FLAT TAX 9% PORTION, HE SEEMS TO ALLOW FOR NO DEDUCTIONS OR ONES THAT ARE SO CONFUSING EVEN HE DOESN'T UNDERSTAND THEM IT SEEMS. MY DEDUCTIONS ARE SIMPLE AND NEEDED. A FAMILY OF 4 WOULDN'T PAY ANY TAX UNTIL APX $35-40K IN INCOME AND ALL INCOME WOULD BE TREATED THE SAME (INDIVIDUAL, CORPORATIONS, CAPITAL GAINS, DIVIDENDS ETC.) AND DEDUCTED AS IS NOW. AS FAR AS THE 9% SALES TAX, MY PLAN EXCLUDES FOOD AND DRUGS, CUTS SALES TAX FOR CARS, TRUCKS, BOATS, AIRPLANES AND MOTORIZED FARM EQUIPMENT IN HALF. i.e. FROM 10% TO 5%. MY PLAN ALSO PROVIDES A GOVERNMENT FOOD STAMP TYPE CARD THAT ADDS $100 PER MONTH TO THE CARD FOR PEOPLE AT $40,000 AND LESS INCOME. TO OFFSET THE SALES TAXES FOR LOWER INCOME TAXPAYERS. CAINS NO TAX ON USED PRODUCTS IS CONFUSING AND WOULD BE IMPOSSIBLE TO IMPLEMENT AND CONTROL. MEDICARE AND MEDICAID IS SAVED BY SINGLE PAYER SYSTEM MEDICARE ADVANTAGE FOR EVERYONE WITH A FAMILY PLAN FOR PEOPLE UNDER 65 AND ALL HEALTH CARE FROM THE GOVERNMENT BE UNDER ONE SYSTEM. MEDICARE, MEDICAID VETERNS ETC. BULK PURCHASES LIKE CANADA ETC
HERE IS MY PROPOSAL I HAVE SENT
MANY POLITICIANS. THE DIFFERENCE IS THAT SS PAYROLL TAX IS NOT INCLUDED IN
MY PLAN. IT IS MADE SOLVENT BY RAISING THE CAPS TO 10 MILLION DOLLARS OR ALL THE WAY UP IF NECESSARY. IT
WOULD HAVE A DONUT HOLE FROM PRESENT 106 THOUSAND CAP AND 256 THOUSAND TO START NEW CAP. TO 10 MILLION OR ABOVE. I BELIEVE THAT PERRY'S FLAT TAX PLAN LACKS THE ABILITY TO GO AFTER UNDECLARED WEALTH WHO SPEND IT WITHOUT DECLARING IT (I believe President Obama should lay off the payroll taxes, )
SS has enough problems without shrinking it more. Just close some loop
holes for the Super rich and the big corporations.
Subject: MAYBE SOME BETTER IDEAS ON TAXES AND JOBS THAN CONGRESS OR THE
PRESIDENT TAX REFORM MADE FAIR AND SIMPLE
SUBJECT A CITIZENS VIEW OF TAX REFORM THAT IS SIMPLE AND FAIR (I WROTE
THIS UP ALMOST 20 YEARS AGO AND HAVE SEEN NOTHING IN 20 YEARS THAT
CHANGES MY MIND.) MANY OF OUR GOVERNMENT OFFICIALS HAVE A NEW TAX PLAN,
BUT NONE ADDRESS THE FUNDAMENTAL PROBLEMS. FAIRNESS, SIMPLICITY OR
ADDRESS THE THE DEBT AND DEFICIT AT THE SAME TIME. I GAVE MY IDEA SOME
THOUGHT AND TOOK TWO HOURS OR SO TO PUT IT TOGETHER AND IT TOOK LESS THAN
HALF A PAGE TO TYPE IT. CORPORATIONS AND INDIVIDUAL TAXES ARE TO BE
TREATED THE SAME I WOULDN'T EXPECT TO BALANCE THE BUDGET COMPLETELY WITH
TAX REFORM, BUT SOME REDUCTION IN THE DEFICIT SHOULD BE INCLUDED AND THE
DEBT AS WELL THROUGH A NATIONAL DEBT LOTTERY OR DEBT SUR TAX. THE DEFICIT
WILL START TO SHRINK AS INTEREST PAYMENT'S BECOME LESS. TRIMMING THE
BUDGET WOULD CONTINUE
[A] 10% NATIONAL SALES TAX [FOOD AND
PRESCRIPTION MEDICINE EXEMPT] ALSO A 5%SALES TAX INSTEAD OF 10% ON HOMES,
AUTOS, TRUCKS AND MOTORIZED FARM EQUIPMENT.ALSO A $100.00 PER MONTH PHOTO
ID CARD RENEWED MONTHLY FOR PEOPLE UP TO 4 TIMES THE POVERTY RATE TO
OFFSET THE 10% SALES TAX HARDSHIP. [B] 10% TO 15% FLAT
TAX [OR PERCENTAGE NEEDED TO OFFSET THE 1O % SALES TAX.(IT COULD BE THAT A
10% TAX ON BELOW $500,000 GROSS AND 15% FOR OVER $500,000 GROSS INCOME
FROM ALL SOURCES (C)A NATIONAL LOTTERY WITH 100%
PROFITS APPLIED TO THE NATIONAL DEBT. ALSO AN OPTION TO ADD A PERCENTAGE
TO THE FLAT TAX FOR FURTHER DEBT REDUCTION.
(D)$19,000 OR
ANNUAL POVERTY LEVEL DEDUCTED UP FRONT. WHICHEVER IS LESS . REMEMBER I
WROTE THIS YEARS AGO. (E)$3000 PER
DEPENDENT DEDUCTED. $ 6000 IF ENROLLED IN A CREDITED PRIVATE SCHOOL, TRADE
SCHOOL OR UNIVERSITY [F]FAMILY DEDUCTIONS- A PERCENTAGE OF HOME MORTGAGE INTEREST DEDUCTED.
INCOME CREDITS FOR THE ELDERLY-CHILDREN AND DISABLED.
(G) 200% OF ALL LEGAL CHARITABLE CONTRIBUTIONS DEDUCTED.
(H) ALL OF ALL OUT OF POCKET MEDICAL EXPENSES DEDUCTED.
( I]100% OF ALL OUT OF POCKET RETIREMENT PROGRAMS DEDUCTED IF NOT IN AN IRA ETC.
i.e. ALREADY RECEIVING TAX FREE RETIREMENT PROGRAM.
(J) 20% OF ALL BUSINESS EXPANSIONS DEDUCTED PER YEAR FOR 5 YEARS. ANY
EXPANSIONS MUST BE IN THE UNITED STATES AND RELATED TO EXISTING BUSINESS.
[K]200% OF ALL ENERGY USED IN BUSINESS TO COVER ENERGY AND REPAIR OR REPLACEMENT COST AS WELL AS DEPRECIATION.
[L] 100% OF ANY DISASTER EXPENSE NOT COVERED BY INSURANCE. [FIRE-FLOOD-CROPS-ETC.
[M] RELIGIOUS
AND EDUCATION DEDUCTIONS WILL BE LIMITED TO BUILDING OF WORSHIP AND
EDUCATION BUILDINGS.i.e.THEIR INVESTMENT PROPERTIES ETC. NOT DEDUCTED.
THE 10% SALES TAX AND 10%-15% FLAT TAX COMBO WOULD REMAIN
FIXED-BUT COULD BE MOVED UP OR DOWN 1% BY A SIMPLE MAJORITY.ANY FURTHER
REQUIRES A SUPER MAJORITY.ANY MOVEMENT PREFERRED ON THE FLAT SIDE. THIS
WOULD BE DONE ONLY IN THE CASE OF AN EMERGENCY. THE PERCENTAGES I HAVE
MENTIONED SHOULD COVER THE BUDGET FOR THE NEXT FISCAL YEAR. IF NOT THEY
WOULD HAVE TO BE RAISED TO MEET AT LEAST A LARGE PORTION OF THE BUDGET.
i.e. START OUT REFORM WITH A BALANCED BUDGET WHICH WOULD BE IDEALISTIC.
THE NATIONAL DEBT WILL START TO BE TRIMMED WITH A NATIONAL LOTTERY AND /OR
ADD A 1% SUR TAX TO THE 10%-15% FLAT TAX TO BE APPLIED ONLY TO THE
NATIONAL DEBT.[ A NATIONAL SUR TAX IF YOU WILL] WITH-HOLDING TAX
WILL BE KEPT IN PLACE AND EXPANDED TO FINANCIAL INSTITUTIONS TO WITH HOLD
TAXES ON INTEREST PAYMENTS. ALL INCOME WOULD BE TAXED USING THE
10%/10% FORMULA INCLUDING ALL CAPITAL GAINS. THE FEW DEDUCTIONS
ALLOWED ARE NECESSARY FOR STABILIZATION AND IN THE CASE OF CHARITY- TO
PROMOTE CHARITABLE CONTRIBUTIONS. NOTE: WITH A 10% SALES TAX COMBINED
WITH A 10%-15% FLAT TAX-THE GOVERNMENT WOULD BE ABLE TO PICK UP ILLEGAL
AND HIDDEN MONEY TAXES AS IT IS SPENT. NOTE:WE CAN'T WAIT 5-10 YEARS TO
BALANCE THE BUDGET. BY THAT TIME THE INTEREST WILL BE 30 OR 40% OF THE
BUDGET. WE NEED TO ACT NOW. [I CAN'T BELIEVE I WAS SAYING THIS 20 YEARS
AGO.] ANY TAX REFORM THAT DON'T TACKLE THE DEBT AND ANNUAL DEFICIT AT
THE SAME TIME IS DOOMED FOR FAILURE. BY STARTING A NEW TAX PROGRAM- YOU
CAN DISGUISE MANY OF THE TAXES AS REDUCTIONS INSTEAD OF IN MANY CASES AN
INCREASE.i.e.THERE IS GOING TO HAVE TO BE SOME INCREASE TO GET A HANDLE ON
THE DEBT. I BELIEVE MY PROPOSALS ARE MORE REALISTIC -FAIR AND
SIMPLER TO UNDERSTAND THAN WHAT I HAVE SEEN FLOATING AROUND ON THE
POLITICAL SCENE FOR THE PAST 30 OR 40 YEARS. THE ESTATE TAX SHOULD BE A
FAIR EXEMPTION AND RATE OR MAYBE JUST A 10% FLAT TAX ON ENTIRE ESTATE.
MAJOR ATTENTION WOULD BE GIVEN TO OFFSHORE US HOLDING CORPORATIONS AS WELL
AS COMPANIES MOVING BUSINESSES OVERSEAS (OFF SHORE). COMPANIES MOVING OFF
SHORE SHOULD BE TREATED AS A FOREIGN CORP. THE US TRADE BALANCE SHOULD BE
A PART OF TAX REFORM. EQUAL TARIFFS AND IMPORT/EXPORT QUOTAS SHOULD MATCH.
i.e.FAIR TRADE NOT FREE TRADE AS IT IS ABUSED TODAY BY OUR SO CALLED
FRIENDS.
[ HOW TO CREATE JOBS] I WILL TAKE A STAB AT THIS SUBJECT: (A) I BELIEVE THAT IS THE PRESIDENT WOULD SUBMIT A BILL THAT WOULD
ALLOW THE GOVERNMENT TO PAY HALF THE SALARIES OF NEW HIRES UP TO $40,000
PER YEAR FOR ONE YEAR MIGHT GENERATE SOME NEW HIRING. (B) A BILL THAT WOULD EXEMPT ALL CORPORATE TAXES FOR 2 YEARS FOR ANY OUT
SOURCED JOB THAT WAS RETURNED TO THE U.S. AND REDUCE ALL CORPORATE TAXES
TO 25% OR UNTIL TAX REFORM IS IN PLACE(MY ENCLOSED PLAN).
(C) HAVE A LOOP
HOLE REFORM COMMITTEE THAT WOULD IDENTIFY UN-NEEDED LOOP HOLES AND
SUBSIDIES. EXAMPLE THE REMC NO LONGER IN NEED OF SUBSIDIES, TAX
INCENTITIVES FOR MOVING CORPORATIONS OUT OF THE U.S., OIL SUBSIDIES AND
FARM SUBSIDIES, LOOP HOLES FOR BIG MONEY PEOPLE WHO ONLY PURPOSE IS TO
LINE THEIR OWN POCKETS, HEDGE FUND MANAGERS FOR AN EXAMPLE AND THE LIST
GOES ON AND ON. (D)TRADE AND TARRIF
INBALANCES ETC. ALL HAVE A LOT TO DO WITH TAX REFORM.



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