Redoing the US tax code...

[TrapperJohn]

End ALL refundable tax credits.

For low wage earners a simple flat tax with no return filing requirement. If they need welfare, run them through the welfare programs.

Payroll tax to cover single pay. About 10% should cover it.

Remove all excise taxes, actual and embedded, and implement a small national sales tax. Allow people to choose what they want to fund. The rate should fluctuate and tie to the deficit. When there is no deficit, no tax. Voters would have a real incentive to elect the "no tax" crowd.

Simplify corporate tax returns. My business return was hundreds of pages. Reconciling an M1 and other schedules between book and tax is a time consuming process that doesn't add value to a business. Gross sales less certain deductions x some low statutory rate would generate as much revenue much easier.

I reserve the right to change my mind next week.

[Frank DeForrest]

cut spending and the size government before tinkering with tax schemes.
I dont want more efficient ways to feed the monster.

[bellhead]

Originally Posted by Frank DeForrest

cut spending and the size government before tinkering with tax schemes.
I dont want more efficient ways to feed the monster.

the debate isn't about the "monster" my point is the game is rigged and we need to redo the tax code in order to grow the economy.

What I want to do is encourage manufacturing and small businesses. Reduce the tax code and balance the budget...

[afoigrokerkok]

Originally Posted by bellhead

No country in the world has a flat tax, it would be a non starter politically as 60% of us would see an immediate tax increase. The democrats control the Senate and would shoot it down.

The Democrats control the Senate right now. Not permanently. Regardless, who controls what is irrelevant to this thread because we are discussing what we think should happen - not about what could or could not pass (either right now or in the future).

60% of us would not see an immediate tax increase under my plan. Irishvanguard didn't name a specific rate in his/her post, but the rate of 20% that I proposed would actually result in most people in the middle class/upper middle class/lower end of upper class - and even some lower-income people without children - seeing a significant decrease. Some lower-income/lower middle class people who are paying little to no income taxes right now (or are actually getting back more money than they pay) would see an increase, but some upper class people who live off of investments would see an increase as well.

Originally Posted by bellhead

What I proposed is a way to encourage manufacturing in the U.S which provides they type of jobs we want here while having the businesses that provide them the services they need to make up the slack.

Except government picking winners and losers rarely works well. And, while manufacturing jobs are good, we shouldn't necessarily want them any more than any other type of job.

Originally Posted by bellhead

Also cutting taxes to small businesses so they can grow and become the engines of tomorrow...

My plan would likely result in more cuts for small businesses than your plan calls for.

[millionaireforRomney]

There should not be any taxes on capital gains and there should also not be any estate taxes. I am tired of paying while others pay nothing. The wealthy in this country pay for everything.

[geofra]

The tax code could be simplified down to a 3 by 5 index card and Congress will complicate it by favoring political supporters with tax credits and punishing political opponents with tax debits. Between simplifying the code and keeping Congress from adjusting it, I'm afraid the easier accomplishment is simplifying the code.