Posted on 11/16/2005 11:06:19 AM PST by JZelle
Two weeks ago, the President's Advisory Panel on Federal Tax Reform issued its final report. Although our federal tax system is in dire need of restructuring and simplification, the panel's approach is a nonstarter. It proposes much pain for very little gain. The likelihood is virtually nil that it will form the basis for congressional action. The panel proposed two alternative tax plans for restructuring the federal corporate and individual income tax systems. One is called the Simplified Income Tax Plan and basically keeps the income tax while making a number of changes. The other is called the Growth and Investment Tax Plan. It is essentially a consumption-based tax system. However, the two plans have many features in common. Among the most controversial parts of both proposals are elimination of the deduction for state and local taxes, a severe scale-back of the mortgage interest deduction and sharp limits on the exclusion for employer-provided health insurance. In return, the Alternative Minimum Tax would end for both corporations and businesses. There would be a small cut in the top income tax rate from 35 percent on individuals to 33 percent under the simplified plan and 30 percent under the growth plan. The corporate rate would fall from 35 percent to 311/2 percent in the former and 30 percent in the latter.
(Excerpt) Read more at washingtontimes.com ...
If anyone would like to be added to this ping list let me know.
We will never see true tax relief! Everytime they try to "fix" it, we get something like this!
One thing's certain, it won't come from DC bureacrats and politicians. If tax reform is to happen, it will only happen at the insistance of the American electorate by deciding on a course of action bouncing politicians that "don't get it."
Plans exist and have been introduced through a few Reps willing to take a clear stand on the issues. It's up to us to carry the water however.
John Linder in the House(HR25) & Saxby Chambliss Senate(S25) introduced comprehensive legislation to kill all income and SS/Medicare payroll taxes outright and replace them with with a national retail sales tax administered by the states.
H.R.25,S.25
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.Refer for additional information:
"Among the most controversial parts of both proposals are elimination of the deduction for state and local taxes, a severe scale-back of the mortgage interest deduction and sharp limits on the exclusion for employer-provided health insurance"
All 3 of those need to be done. Why should those in low tax states effectively subsidize our blue state cousins in their high tax states?
Similarly, why should renters subsidize home owners?
And as for health insurance itself, why do you think health care is so expensive today? If it weren't for employer provided health care, you might still be able to visit a doctor (albeit on your own dime) for a reasonable rate.
Naturally all this must be counterbalanced by an across the board tax cut.
"However, the two plans have many features in common."
That makes very little sense.
"Among the most controversial parts of both proposals are elimination of the deduction for state and local taxes"
Not surprising for a consumption tax.
"a severe scale-back of the mortgage interest deduction and sharp limits on the exclusion for employer-provided health insurance"
Not surprising for a consumption tax.
"In return, the Alternative Minimum Tax would end for both corporations and businesses."
Am I confused about what a consumption tax is? Is the author confused? Is the pannel confused?
It sounds more like the reporter was ignoring the consuption tax option and complaining about the revised income tax option to me, but I didn't read the pannel's report.
I do share the author's opinion that it's DOA. Congress simply isn't going to support any real tax reform. It would limit their power too much.
If only we could clone the handful of good Republicans in the House and Senate...
They're like a one-legged man in an a$$-kicking contest.
If it weren't for employer provided health care, only the sick and elderly would bother paying for insurance. Medical rates would rise and we'd be one step closer to needing a national health-care plan. Or I guess they could let the uninsured die on the emergency room floor.
"If it weren't for employer provided health care, only the sick and elderly would bother paying for insurance."
So it has to be employer provided, huh? Why stop there? Why not gvt provided?
Gee... Wonder how our grandparents got along without it?
If only we could clone the handful of good Republicans in the House and Senate...
If you think about it, the problem with Congress is that they are a clone of ourselves, as we act to elect them.
They come from our ranks and they are us, insofar as they represent the drives of the populace that elects them and keeps them in power.
We were warned:
“A general dissolution of principles and manners will more surely overthrow the liberties of America than the whole force of the common enemy. While the people are virtuous they cannot be subdued; but when once they lose their virtue they will be ready to surrender their liberties to the first external or internal invader.”
--- Samuel Adams
"Only a virtuous people are capable of freedom. As nations become corrupt and vicious, they have more need of masters."
Benjamin FranklinCan the liberties of a nation be thought secure when we have removed their only firm basis, a conviction in the minds of the people that these liberties are a gift of God? Indeed I tremble for my country when I reflect that God is just; that His justice cannot sleep forever.
Thomas Jefferson
Notes on the State of Virginia (1781-1785) Query 18
"The condition upon which God hath given liberty to man is eternal vigilance; which condition if he break, servitude is at once the consequence of his crime and the punishment of his guilt."
-John Philpot Curran: Speech upon the Right of Election, 1790.
Well now! Something I can agree with Mr. Bartlett on for a change!
Why not gvt provided? The states have already begun, we will have a socialistic health-care system by time I retire, I guarantee it.
"Why not gvt provided? The states have already begun, we will have a socialistic health-care system by time I retire, I guarantee it."
You're probably right. And no doubt I'll benefit from it too, since I plan to get out early.
But that doesn't make it right.
Nope, and it will likely be much worse, but if the private sector refuses to take responsibility it will ultimately be forced upon the taxpayer.
With that 'never win' attitude, why you posting here in the first place?
"With that 'never win' attitude, why you posting here in the first place?"
Because I like to bitch.
JZelle: Because I like to bitch.
You are a real piece of work, you say that nothing can be done about problems, then you say you like to complain about problem.
Pull your head out of the sand. The point about the tax panel was not would they would come up with, but to record the testimonies from various people and businesses in this country and they ALL supported the Fairtax.
I wish I had your faith in bureaucrats.
I have no faith in bureaucrats, but I do have faith capitialists, not to be confused with corperate socialists, who know how to push forward a movement to do the right thing and make a nice profit at the same time: www.amazon.com/exec/obidos/tg/detail/-/0060875410/qid=1132178424/sr=8-1/ref=pd_bbs_1/102-3848284-0184131?v=glance&s=books&n=507846
It isn't really a matter of "faith in bureaucrats" - it's a matter of passing a good tax law such as the FairTax and seeing to it the bureaucrats follow it as the law of the land.
Take away their toy of the IRS and Income Tax.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.