What are YOUR ideas on Tax Reform?

[Shadows]

(Tax rates) - 30% Tax rate will be same as Germany, Spain, Australia little less than France, Japan. Only S. Korea & UK are 25% or lower - Maybe you could argue for 25%



Historical tax rates (as already given in this thread - compare the huge fall of the top tax rate to the complete stagnation of the middle class & working class creating a system with all the gains going to the top few - I think it will argue for higher income tax on the uber wealthy

[ProgressiveCanadian]

The top earners need to contribute. I see nothing liberal or progressive about cutting Coporate tax rates at all. If anything they have been low for way too long. Since the Court ruling in the late 70s the corruption has increased rapidly. Reagan started the mess but it still continues today.

[(Still) muted by Kalwejt until March 31]

- Massively reduce spending (cut military spending as well as social programs as much as realistically possible)
- Eliminate Obamacare
- Increase taxes on those making over $1 million a year
- Keep taxes relatively the same on those making over $500K to a million a year
- Cut taxes on those making under $500K a year
- Stop the redistribution of money from blue states to red states

-You are a very unusual Democrat. These views look more similar to RINO Tom's than LD Smith's.

[(Still) muted by Kalwejt until March 31]

- Massively reduce spending (cut military spending as well as social programs as much as realistically possible)
- Eliminate Obamacare
- Increase taxes on those making over $1 million a year
- Keep taxes relatively the same on those making over $500K to a million a year
- Cut taxes on those making under $500K a year
- Stop the redistribution of money from blue states to red states

-You are a very unusual Democrat. These views look more similar to RINO Tom's than LD Smith's.

Can we stop with this board schtick that only poor people vote Democrat?  The upper income vote was basically split between Democrats and Republicans in the last election. 

-As a rule, opponents of Obamacare and social programs do not vote Democrat.

[Meclazine for Israel]

If a company moves it's accounts to a tax haven, then ping it. There are too many corporations taking the piss out of the US tax system.

Consumption tax like a GST is a very effective way to gather taxes. It basically captures taxes from people who would not normally pay tax.

Corporate taxes like payroll taxes need to be minimized.

[○∙◄☻¥tπ[╪AV┼cVê└]

Tax unearned income the same as earned income.
Increase taxes on the rich
Increase estate taxes
Decrease payroll taxes for the poor.

[NeverAgain]

Great! Love it.

- Reform the current 7 income brackets down to a 6, 8%, 12%, 20%, 25%, 32%, and 40% system:
  8% = 0-$25K (1/2 Single, 3/4 HoH) (fraction is eligibility based on filing status, so $12,500 and   $18,750 for Single and Head of Household)
  12% = $25K-$75.9K (1/2 Single, 3/4 HoH)
  20% = $75.9K-$120K (3/5 Single, 7/8 HoH)
  25% = $120K-$200K (4/5 Single, 9/10 HoH)
  32% = $200K-$450K (9/10 Single, FULL HoH)
  40% = $450K+ (FULL Single, FULL HoH)
- Establish the Buffet Rule for Millionaires, while reducing the AMTs affect on those below the new 32% bracket

- Increase EITC by 50% for single filers, 25% for married couples
- Raise the phaseout start to $25K
- Raise the max child care tax credit to $1250
- Add $250 for parents with 5 kids or more
- Increase Max Childcare Deduction per dependent to $3500

- Raise the Standard Deduction to $15,000, raise it to $2,000 for the blind and elderly.

Paying for this would be relatively simple: Reform the mortgage interest deduction (lower the cap to $500,000, end second-home deduction, make a tax credit), and the charitable deduction (only for those giving more than 2% of their AGI). And of course, END the Carried Interest Loophole. Along with a couple more nitty gritty ending of deductions and loopholes.

- Corporate Taxes need to be lowered. I'd say make a two bracket system of 14% for business profits under $1M, and then 28% above that. End a couple of silly corporate tax loophole structures like lowering the meals and entertainment to 25%, Blue Cross/Shield Preferences, etc.

- Raise the individual mandate fees being tied directly to an increase in subsidization of the exchanges.

- Create a new 45% Estate Tax Bracket for those making $10M+

- Start making sizable increases in the gas tax, to adjust for inflation, the alcohol/tobacco taxes ($16 per gallon, and $1.50 a pack, for each respectively), and raise the bejeezus out of the indoor tanning salon tax.

- Raise payroll taxes to account for 90% of wages, as was established in the 80's S.S. Reform package

- Double the tax on heavy vehicle tires to help pay for the HTF.

I will likely add some more stuff here. Such a fun topic.

[mvd10]

- Replace the exclusion for employer-sponsored health insurance with a fully refundable flat tax credit for everyone purchasing healthcare
- Get rid of the corporate income tax and capital gains tax
- Increase the standard deduction to 50k for single filers and 100k for married couples and repeal all itemized deductions (not that there are many itemizers left after the expansion of the standard deduction)
- Cut the top income tax rate to 33%
- Enact a VAT to pay for all of this but create a monthly tax rebate for VAT on purchases up to the poverty level. I guess the VAT would have to be 10-15% to pay for everything including the rebate.

I would probably also enact a carbon tax. Maybe use the revenue for a payroll tax cut or something like that.

[Intell]

- Massively reduce spending (cut military spending as well as social programs as much as realistically possible)
- Eliminate Obamacare
- Increase taxes on those making over $1 million a year
- Keep taxes relatively the same on those making over $500K to a million a year
- Cut taxes on those making under $500K a year
- Stop the redistribution of money from blue states to red states

-You are a very unusual Democrat. These views look more similar to RINO Tom's than LD Smith's.

Can we stop with this board schtick that only poor people vote Democrat?  The upper income vote was basically split between Democrats and Republicans in the last election. 

-As a rule, opponents of Obamacare and social programs do not vote Democrat.

Which is why he shouldn't be a democrat, he doesn't hate black people of course, just poor black people.

[True Federalist (진정한 연방 주의자)]

Time to go back to FDR and Eisenhower tax rates.

Only if we get into World War III.

Was Eisenhower in a world war while president? Hmmm didn't know that

He inherited the rates from World War II. Thankfully, the surtax enacted for the Korean War ended with that war. It would take a dislocation of our economy similar to a world war to make such excessive tax rates doable.

[Shadows]

If a company moves it's accounts to a tax haven, then ping it. There are too many corporations taking the piss out of the US tax system.

Consumption tax like a GST is a very effective way to gather taxes. It basically captures taxes from people who would not normally pay tax.

Corporate taxes like payroll taxes need to be minimized.

GST is an amazing idea, I have looked into the GST system in a few countries, Canada is such a great example, revenue exploded & the tax rate is so low but it is impossible to establish in the USA due to tax autonomy loss as you can't have 50-60 different GST rates changing all the time - States have to agree to give up taxation power - In many cases, you have a combined committee of states & federal governments to decide - That is just not possible !

- Massively reduce spending (cut military spending as well as social programs as much as realistically possible)
- Eliminate Obamacare
- Increase taxes on those making over $1 million a year
- Keep taxes relatively the same on those making over $500K to a million a year
- Cut taxes on those making under $500K a year
- Stop the redistribution of money from blue states to red states

-You are a very unusual Democrat. These views look more similar to RINO Tom's than LD Smith's.

Can we stop with this board schtick that only poor people vote Democrat?  The upper income vote was basically split between Democrats and Republicans in the last election. 

-As a rule, opponents of Obamacare and social programs do not vote Democrat.

Which is why he shouldn't be a democrat, he doesn't hate black people of course, just poor black people.

He used to be a Republican who voted for Bush etc & is now a Democrat because the GOP has become bat sh*t crazy & racist in the age of Trump. When a sensible Republican like Kasich will come, he "MAY" swing back to being a Republican is my guess, or will atleast consider it.

Dems will likely not form policies considering voters who are Ex- Republican, Fiscally conservative, "small" Government, anti-welfare people but everyone has a right to his/her opinion & everyone has a right to support his/her party of choice. No1 can ask others to move away from a party - But fiscally conservative voters in Dem or Fiscally very liberal voters in GOP will likely be marginalized anyways !

[Shadows]

Time to go back to FDR and Eisenhower tax rates.

Only if we get into World War III.

Was Eisenhower in a world war while president? Hmmm didn't know that

He inherited the rates from World War II. Thankfully, the surtax enacted for the Korean War ended with that war. It would take a dislocation of our economy similar to a world war to make such excessive tax rates doable.

The Tax rates has nothing to do with WWII & it was completely irrelevant to the issue & Tax rates had touched 80% even before entry to the War. It was how FDR governed, he kept on increasing Income Tax rates slowly year by year or every other year & he expanded government, created massive infrastructure, he even had 100's of 1000's of people then in a Conservation group for national parks kind of thing.

Then he introduced Social Security, Minimum Wage, etc & he funded that with high tax rates. And growth exploded, one of the highest in history for any major country. And thus he kept on increasing - As a matter of fact he wanted a Maximum Wage & proposed Income Tax rates at 100% for that but Congress vetoed it & they agreed on a compromise of 52-55% odd.

The rates stayed between 70% & 90% till 1980 odd, till Reagan started this failed Trickle Down Economics. 70% to 90% or somewhat near to that was the norm all major countries then, not necessarily linked to the war. Margaret Thatcher followed Reagan in trickle down & slashed rates too & most countries adjusted to the new era of lower taxes.

In general Economic-Political history can be divided into 3 parts when it comes to only "Income Taxes"  - Pre-FDR, FDR & Post FDR (FDR, Truman, Eisenhower, Nixon, JFK, LBJ, Ford, Carter etc) & Regan & Post-Reagan.

[parochial boy]

I don't really see the point in confiscatory estate taxes or even extremely high rates (>50%) on the highest earners. The tax code should be distributive, but punitive rates are mostly a symbolic measure - the kind that you throw out in a stump speech to win over the rubes even though you know that it wouldn't really change much. The focus for those of us who want a more even distribution of wealth, income, and power should be primarily on those policies that influence the pre-tax distribution of income and wealth.

I broadly, but not entirely agree with this.

However, I do think that looking at tax rates first is the wrong way to do it. You should look at what level of spending you want, and on the basis of this, you should cost various tax proposals to achieve that level of spending. Saying, "let's have XX rate" is just a bit arbitrary.

My preference though, would be for higher taxes on wealth and capital gains from non-productive assets, as the difference between owning capital or not is one of the major drivers of inequality in days. I think a financial transactions tax could also be a good idea if it reduces speculation and especially high frequency trading, but I'll admit I don't know too much about the arguments for or against such a tax (it's a good populist tool though).

I will also add that, cracking down on tax havens would be basically impossible without international agreements backed up by supranational law. You can't just tax a company moving revenue or assets through tax havens, because the nature of transactions is just too complicated.

For example, you buy a widget in the US, but in actual fact it was a sale by Company A (Delaware) inc, who buy their goods from Company B (Bermuda); who pay an intellectual property royalty to Company C (Luxembourg), interest on a 10% rate loan to Company D (Cayman Islands) and buy the  widgets from the factory in Costa Rica that is owned by Company E (Switzerland). The goods never go to any of these countries, but are stored in a warehouse in Panama until they are bought by the company in Delaware. How on earth do you work out who is supposed to be taxed what out of all of that?

Economic priorities should be about reforming company ownership and executive management, financial regulation and strengthening trade unions and worker protections

[🦀🎂🦀🎂]

The only decent tax reform would require global cooperation and consolidation, but alas "muh nation-states" will prevail and the global elite will win as usual.

Probably a decent tax code would be based around a georgist land tax (which would be a pain in America seeing as you would have to change the property taxes at lower levels as well). Maybe push for a one off wealth tax, then force through a plan with the OECD and G20 for wealth and Financial transactions with no escape across borders. Try and lower corporate tax, payroll tax and state sales taxes. Pigouvian taxes. And also make tax returns public info so it is easy to shame celebs, politicians and rich idiots who have their money squirreled away in the Caymans.

[I Won - Get Over It]

- Much lower corporate tax
- Higher individual tax for rich
- Consumption tax, VAT, as in all Western countries ~25%
- 0% VAT for Healt Care, Food, Newspapers etc.
- Huuuuuge VAT for ~Fast Food ~50%, Alcohol & Cigaretts  ~70% or similar fixed tax per cigarette/liter (the point is that the price should be much higher than it is now; it'll result in lower medical costs).

[Green Line]

Everyone pays their fair share in a nice, progressive tax.

[Amenhotep Bakari-Sellers]

My idea isn't giving corporations a lower tax rate.

It is vital we reform our social security system.  Raise the cap like Jan Schakowski says on the wealthy and Nancy Pelosi wants so that wealthy people can pay a higher percentage.

And a 401 K account in addition to social security checks.  Democratic plan.

[True Federalist (진정한 연방 주의자)]

Time to go back to FDR and Eisenhower tax rates.

Only if we get into World War III.

Was Eisenhower in a world war while president? Hmmm didn't know that

He inherited the rates from World War II. Thankfully, the surtax enacted for the Korean War ended with that war. It would take a dislocation of our economy similar to a world war to make such excessive tax rates doable.

The Tax rates has nothing to do with WWII & it was completely irrelevant to the issue & Tax rates had touched 80% even before entry to the War. It was how FDR governed, he kept on increasing Income Tax rates slowly year by year or every other year & he expanded government, created massive infrastructure, he even had 100's of 1000's of people then in a Conservation group for national parks kind of thing.

Then he introduced Social Security, Minimum Wage, etc & he funded that with high tax rates. And growth exploded, one of the highest in history for any major country. And thus he kept on increasing - As a matter of fact he wanted a Maximum Wage & proposed Income Tax rates at 100% for that but Congress vetoed it & they agreed on a compromise of 52-55% odd.

The rates stayed between 70% & 90% till 1980 odd, till Reagan started this failed Trickle Down Economics. 70% to 90% or somewhat near to that was the norm all major countries then, not necessarily linked to the war. Margaret Thatcher followed Reagan in trickle down & slashed rates too & most countries adjusted to the new era of lower taxes.

In general Economic-Political history can be divided into 3 parts when it comes to only "Income Taxes"  - Pre-FDR, FDR & Post FDR (FDR, Truman, Eisenhower, Nixon, JFK, LBJ, Ford, Carter etc) & Regan & Post-Reagan.

Yes FDR raised taxes several times, but the truly astronomical rates and limited rate brackets that existed from 1942 to 1963 with but minor changes were a direct result of WW II. Incidentally, the biggest pre-WW II tax hike was in 1932 under Hoover and certainly was a factor in the Panic of 1929 becoming the Great Depression.

[DC Al Fine]

The only decent tax reform would require global cooperation and consolidation, but alas "muh nation-states" will prevail and the global elite will win as usual.

Probably a decent tax code would be based around a georgist land tax (which would be a pain in America seeing as you would have to change the property taxes at lower levels as well). Maybe push for a one off wealth tax, then force through a plan with the OECD and G20 for wealth and Financial transactions with no escape across borders. Try and lower corporate tax, payroll tax and state sales taxes. Pigouvian taxes. And also make tax returns public info so it is easy to shame celebs, politicians and rich idiots who have their money squirreled away in the Caymans.

I get the first two, but how is a low key version of Donald Trump supposed to be shamed by this?

[RINO Tom]

Time to go back to FDR and Eisenhower tax rates.

Only if we get into World War III.

Was Eisenhower in a world war while president? Hmmm didn't know that

He also literally lowered the rates as much as he could get away with.

[True Federalist (진정한 연방 주의자)]

Time to go back to FDR and Eisenhower tax rates.

Only if we get into World War III.

Was Eisenhower in a world war while president? Hmmm didn't know that

He also literally lowered the rates as much as he could get away with.

Which was practically not at all.  A surtax for the Korean War was allowed to mostly expire, but that's it.

[Blue3]

The loopholes were also massive in Eisenhower's time... even with an official tax rate of 90%, most billionaires would pay less than 30%.

[DC Al Fine]

The loopholes were also massive in Eisenhower's time... even with an official tax rate of 90%, most billionaires would pay less than 30%.

Agreed.

People often complain about how the tax code favours special interests and how we should go back to 1940's-70's tax codes. They are completely unaware that the tax code was even more loophole ridden than it was then. To take a Canadian example, capital gains weren't taxed at all until 1972.

[True Federalist (진정한 연방 주의자)]

The loopholes were also massive in Eisenhower's time... even with an official tax rate of 90%, most billionaires would pay less than 30%.

Agreed.

People often complain about how the tax code favours special interests and how we should go back to 1940's-70's tax codes. They are completely unaware that the tax code was even more loophole ridden than it was then. To take a Canadian example, capital gains weren't taxed at all until 1972.

Incidentally, it was to allow capital gains to be taxed just like wage income that the 16th amendment was passed. Maximum capital gains tax rates were only slightly more during the World War II/Eisenhower era than now. (But nowhere near as bad as during Wilson's World War I tax regime. 77%, the same as any other income.)

[Meclazine for Israel]

If a company moves it's accounts to a tax haven, then ping it. There are too many corporations taking the piss out of the US tax system.

Consumption tax like a GST is a very effective way to gather taxes. It basically captures taxes from people who would not normally pay tax.

Corporate taxes like payroll taxes need to be minimized.

GST is an amazing idea, I have looked into the GST system in a few countries, Canada is such a great example.

It's ridiculously good.

If someone starts with 100$, and starts spending, the government gets 10%. $10.

Then you are left with $90.

When that gets spent, the government gets $9 and so on.

If it keeps getting spent, the government takes the lot, so you need to reimburse GST expense against GST income on your business accounts.

But that is OK, the country gets 10% of every dollar spent and your business owners collect the tax for you and send it to you electronically.

The most effective taxation system in the world.