The best part of the Gang of Six plan is a reduction in the top personal tax rate from 35% to a range of 23 to 29%. For businesses, the rate would drop in the same manner. And the corporate tax would be territorial rather than global, thereby avoiding the double tax on foreign earnings of U.S. companies. Finally, the plan would abolish the $1.7 trillion alternative minimum tax. That's huge. It's another pro-growth tax reform.
Just the reduction of the double taxing would unleash billions of dollars for American companies to grow with. Plus, companies can finally stop gaming the tax system with tricks and worry about raising their revenue numbers. I mean GE can stop trying to lobby Congress and the White House for tax breaks and concentrate on creating new products and hiring people so their company can grow.
Also getting rid of the dreaded AMT would save millions of upper middle class people from getting hit with massive tax bills. I would love to see rich people just pay 29% of their income in taxes and not try to claim farm land and other nonsense just to reduce their overall tax bill.
No games or sharp minded accountants gaming the system but just you made X and multiply by 29% and write a check for that amount payable to the IRS.
This thinking actually harkens back to Reagan who wanted a tax system with 3 lines. How much you made, percentage of how much made, and how much you owe. They do raise capital gains by 5% but that can be gamed away with strategic stock sales. Or maybe just let lower income investors like me keep my 15% capital gains tax. In any case just simplify taxes and you will have millions of happy Americans.
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