Tax Reform, My Way

We need real tax reform and we require it now. Previous efforts have been made at tax reform, but they have just supplied band-aid solutions that have actually still left us with a lot of peculiarities, issue, and read tape. There are several things Congress could do to merely the tax system and benefit the taxpayers and federal spending plan at the same time.
I would institute a simple two-tiered tax on profits and passive income (interest, dividends, capital gains, and so on) that are not in a tax-sheltered account. People (whether married or not) who have taxable incomes and passive income of less than $30,000 would pay no federal taxes.
Second, I would get rid of the quarterly estimated tax requirements and associated charges for everybody except those who are habitually late (after April 15) filing their return and/or paying their taxes. Few things in our tax system are more complex than trying to figure whether or not you paid enough estimated taxes, whether they were paid on time, and/or the charge for refraining from doing so. Even the IRS acknowledges how complex it is to determine this penalty, as they use to compute it for you.
Third, I would get rid of the yearly limits on capital losses as well as those special “wash sale” guidelines, which further restrict the composing off of capital losses. As I discussed in a previous writing, these rules can get really made complex, with those for figuring the estimated tax charge being the only ones that are more hard to understand.
Fourth, I would keep personal exemptions and child tax credits undamaged however remove all reductions except for charitable contributions and home mortgage interest on one’s main home. There would be no standard reduction or Earned Income Tax Credit.
Fifth, I would get rid of the Alternative Minimum Tax (AMT). This is probably the third most complex product in the tax law. It was created to make sure the abundant pay at least some taxes, however the elimination of many deductions would achieve this objective now by eliminating most of their shelters.
Sixth, I would make some adjustments to inheritance and present taxes. For the many part, they would not be treated any in a different way than regular income. There would be some exceptions. Inheritances and presents passed from one spouse to another would be exempt from federal taxes. Inheritances of family farms and other genuine businesses by any relative from another would not be taxable.
These changes would benefit people by making the tax system less made complex for everybody and taking a smaller portion of income from the majority of taxpayers (especially the middle class). The federal government would benefit from gathering more taxes because more people would be working and receiving higher earnings (as this system would encourage more investment in facilities).

I would institute a simple two-tiered tax on incomes and passive income (interest, dividends, capital gains, and so on) that are not in a tax-sheltered account. Second, I would get rid of the quarterly projected tax requirements and associated penalties for everyone except those who are repeatedly late (after April 15) submitting their return and/or paying their taxes. Few things in our tax system are more complex than trying to figure whether or not you paid enough estimated taxes, whether they were paid on time, and/or the penalty for not doing so. These modifications would benefit individuals by making the tax system less made complex for everybody and taking a smaller sized percentage of earnings from a lot of taxpayers (particularly the middle class). The federal government would benefit from gathering more taxes due to the fact that more individuals would be working and receiving higher incomes (as this system would encourage more investment in infrastructure).