Tax reform: step by step
The proposed Republican “fair and honest” tax plan offers bread crumbs for the middle class and wedding cake for the rich. There is no fairness and honesty in simply rearranging tax rates.
If they were actually serious about fairness, they would:
First, correct the most serious existing flaw by eliminating the disparity between the real gross incomes of the wealthy versus what they declare as taxable income. Using a maze of carefully structured business perks, tax loopholes and overseas accounts, their reported income is vastly understated. Equally flawed, many of our larger corporations complain about the tax rate while burying their income overseas and paying little or no tax. As a result, both the individual and corporate tax burden is unfairly borne by those citizens and companies who don’t benefit from any of the nuances of tax avoidance.
Second, we need a law that requires both individuals and corporations to declare their total worldwide gross income from all sources. After deducting taxes due overseas, the result would be an honest gross income subject to U.S. taxes.
When we know the real tax base, two things happen: We can realistically determine how much money will be raised by various tax rate structures with some degree of confidence. And, we can evaluate the subject of tax fairness with some degree of objectivity. Both the existing and the Republican-proposed tax systems fail miserably at doing either of these critical aspects of a fair tax system.
Richard Wallace
Hardeeville
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This story was originally published December 16, 2017 at 7:34 AM with the headline "Tax reform: step by step."