A topic everyone seems to agree at least in principle is our current tax system is complex and unfair. Small businessmen and investors like myself waste countless hours annually preparing their taxes and/or paying accountants to deal with the nightmare. Beyond the complexity is the fact only roughly 53% of citizens pay any income tax. While a case can be made for little or nothing to be paid by the poor, there are many, some quite wealthy, that don't pay their fair share due to many deductions, loopholes and credits.
I support a flat tax in the upper teens that would apply for earned income over a basic exemption per individual or family. Those earning less than the exemption would not owe tax. Everyone beyond the exemption would pay tax, no exceptions. A personal view to spur investment is to exempt investment income such as interest, dividends, and capital gains altogether or apply a lower rate than the tax on earned income.
The corporate tax rate also needs to be lowered to a flat rate also eliminating loophole and deductions. This will allow the US to play on a level playing field with other countries to be more competitive.
Alot of the problems we face today relate to uncertainties over future tax policy. We need a new system that is easy to understand, that encourages capitalism, ingenuity, creativity, and rewards success. the time is right to replace our complex, outdated tax system.
No comments:
Post a Comment