|Editor's Note: Time to give the|
FairTax a chance. It is simple
& "fair" for everyone. Time to
eliminate the IRS.
Trump’s plan would condense the current seven tax brackets into just three brackets. That will certainly make it simpler. The income threshold for single taxpayers will be exactly half of the threshold for married joint filers. That will eliminate the so-called “marriage penalty.”
Trump also wants to eliminate the estate tax. This is something that has been proposed and modified over the years. The tax currently applies only to estates worth more than $5.45 million, yet that still affects family businesses and many family farms.
Trump also wants to reduce the corporate tax rate from 35 percent to 15 percent. He also would like to pass a one-time discounted rate so that companies with foreign stockpiles of cash could repatriate that money.
One of the greatest challenges to tax reform is the federal debt. When President Reagan proposed significant tax reform, the national debt was less than a trillion dollars. Now the debt is nearly 20 trillion dollars.
Democrats, especially in the U.S. Senate, will likely oppose any Republican tax reform. That means that Republicans in that chamber would need to use the reconciliation process to pass any tax reform legislation. That will make the process more complex.
Perhaps the greatest challenge will be the American people. All taxpayers are affected by tax reform. In the recent battle over health care insurance, everyone had an opinion because everyone is affected by health care. And like health care, tax policy is complex and not easily understood by many Americans.
Kerby Anderson is a radio talk show host heard on numerous stations via the Point of View Network endorsed by Dr. Bill Smith, Editor, ARRA News Service
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