Tax Reform

[John Galt]

[Winchester]

[Winchester]

[Kane]

So you need to be old or have children in order for this to affect you positively.

I've never had a problem itemizing...that's what my CPA was for.

[John Galt]

[Kane]

Sigh.

[John Galt]

[Kane]

[Winchester]

Oh, I'm not looking at it individually, I'm just stating how much my tax bill would go down.

As far as simplification I'd be good with a much higher standard deduction to cover the bulk of peeps screwed with mortgage & high SALT. Then adjust rates slightly up so there are no big winners/losers but keep it revenue neutral. I guess keep the EIC but the refundable portion of the child tax credit should go at the least. I would also tie the EIC to not exceed FICA taxes (employer/employee) up to about 30K of wages so about $4,500. Those at the bottom end wouldn't get as big of refunds, but at least with this they will only get back what was paid by them or for them.

I'd give up AMT for dividends/cap gains being taxed at ordinary rates (one rate schedule for all). For Corps I'd give them a dividend deduction, again in exchange for no capital gain/dividend special rates. I'd also allow immediate write off of capital purchases. They don't want to pay tax, invest it, spend it or pay it out in dividends.

On the estate tax, I'd give peeps a couple of million for stepped up in basis purposes (permanently escape tax), above that everything gets stepped to FMV but it's compared to the cost basis and the heirs can pay the tax on the gain. If it's assets tied to a farm or family business the tax reckoning can be waived till the family ultimately sells the farm/business.

Also kill off all the credits, corp and individual with the exception of the limited EIC.

[Kane]