LETTER TO THE EDITOR / A Better Tax System

Financing our democracy through taxes is important because, ultimately, government revenue impacts everything – national security, the economy, infrastructure, education, health care.   Barriers to getting the public to demand common sense improvements, include ridiculous tax proposals of presidential candidates and the fact that taxes are a really boring subject.

But, what if you could direct a team of wonks to design a better tax system -one that complied with your criteria? For example, you might insist the plan be fair, simple and devoid of ideological bias. That the plan appeal to both Democrats and Republicans, and that everyone (rich or poor) must contribute. You could even demand lower tax rates that actually generate higher revenues, and enable taxpayers to fill out their tax returns on one side of a 5” X 8” card.

This is all possible. Everyone would have skin in the game because those below the poverty level would pay a participation fee between $100 and $250; and roughly 75% of taxpayers (those earning $100,000 or less) would only pay one low flat tax rate (18%) on income above the poverty level, while incomes in the top 25% would have 3 additional levels (with a maximum of 50% for annual income above $5 million.)   Have your eyes glazed over yet?

There would be no deductions, exemptions or loopholes, with the possible exception of mortgages and charitable gifts. Simple and Fair? Yes. And this plan meets every one of your above criteria. What this proposal does is treat all income as income, whether wages that are earned, interest or dividends, capital gains, inheritance or “carried interest” for hedge fund billionaires.

All that’s needed is for the President to appoint a distinguished bipartisan commission, like your wonks or the Simpson-Bowles Commission, and charge it with making recommendations that serve America and all its people, instead of special interests.

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