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#127655

Rick Bishop
Participant

A standardized, no-deductions tax rate would eliminate our representatives’ capability to attempt to modify taxpayers’ economic behavior. Although many believe that government should not modify citizen behavior, its use has had an overall positive impact on our standard of living. What happens to charities, the housing market, business investments, natural disaster and criminal activity losses, money teachers spend on learning materials, etc? I believe that our current tax system at its base is theoretically sound. However, the ‘earmarked’ deductions have certainly gotten out of hand along with the tax rating systems that allow huge corporations and many wealthy individuals to pay little or no tax at all. It is shown that a large enough campaign contribution can garner an industry or even company-specific tax break that repays the contributor many times over.

What is needed is a replay of something along the lines of the tax reform act of 1969 passed under Nixon. It mainly reduced earned income taxes and increased capital gains taxes to double what they are now and created the ‘alternative minimum tax’ for corporations and individuals that has been rendered meaningless through legislation.