Tax Reform

In America, one particular issue has been of vital importance since the year 1913. Accordingly, it would only make sense for taxes, and particularly that of income taxes to be of national concern because naturally, the populace wishes to know where their money is going. Yet, the tax system is inordinately complicated and is subjected to an infinite number of rules and regulations that no one person could possibly know in the entirety. Thus, the question at hand is how do we reform such a tax system? Taxes are inevitably a consequential and divisive issue because of how much of the federal revenue is of origin from taxes. Whether it is the payroll taxes which account for much of the social programs within the nation, the individual income taxes which account for close to a majority of the federal receipts for revenue, or corporate income and excise taxes which account for the third and fourth highest numbers, taxes are by far the largest source of revenue for the federal government. The Congressional Budget Office estimates that 47.4 percent of revenue in 2013 came from the individual income tax, and the social insurance or payroll tax accounted for 34.1 percent of revenue. The remainder, 9.9 percent and 8.5 percent are attributed to the corporate income tax and other sources which could be any combination of sources. In the year 2024, the individual income tax is estimated to grow to 51.8 percent of revenue as the remaining three categories, social insurance tax (31.6 percent), corporate income taxes (9.7 percent), and other sources of revenue falter (7 percent) (Congressional Budget Office, 2013). The importance of taxes cannot be questioned. All government funding and as a result, government programs originate from federal rece...

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...increased revenue throughout American history dating back to President Kennedy. Eventually, we should move toward taxing consumption and not income, but this isn’t exactly feasible at the current state. Slash the corporate the tax rate which is the highest among developed nations at 35 percent to 25 percent. A lower corporate rate will no longer incentivize corporations to jump through loopholes in order to remain competitive. Repeal the Alternative Minimum Tax and Death Tax. The Alternative Minimum Tax was never at any point indexed for reflation and is entirely unfair to millions of taxpayers. Repeal the Affordable Care Act’s tax policies which functions as a medicare surcharge on investment income. Cap itemized deductions at $17,000. This would save in upwards to $137 billion. Lower payroll taxes on employees with children, expanding the work force tremendously.