http://www.forbes.com/sites/taxanalysts/2013/10/23/whom-do-tax-reformers-want-to-help/
Who are the intended beneficiaries of the tax reform effort being pushed? In general, they promise to expand the tax base by taxing more kinds of income and eliminating lots of credits and deductions in order to lower tax rates. The generalized argument is that a reformed tax system would benefit everyone by leading to less government interference in decision-making and greater economic growth. That’s fair enough, but voters will reasonably ask: What about me?
This is a very thought provoking question and article. Your views?
Who are the intended beneficiaries of the tax reform effort being pushed? In general, they promise to expand the tax base by taxing more kinds of income and eliminating lots of credits and deductions in order to lower tax rates. The generalized argument is that a reformed tax system would benefit everyone by leading to less government interference in decision-making and greater economic growth. That’s fair enough, but voters will reasonably ask: What about me?
This is a very thought provoking question and article. Your views?
I am cynical. The middle will pay more.
ReplyDeleteDefine middle. I know a guy that makes $200k a year and he considers himself middle. I also know someone making $60k that says they're struggling.
DeleteIt sounds like the top earners take in the vast majority of dividends and capital gains, yet these are typically unpopular tax categories. Another reason why multimillionaires can have effective tax rates lower than 15%
ReplyDeleteTheir will always be someone left unsatfisfied with any kind of tax reform, like the article states someone has to win and someone has to lose. It's in our nation to ask "what about me?" And why wouldn't you.
ReplyDeleteeliminating credits and deductions wouldn't lower taxes, it would more than likely create a higher effective rate. I think that the framing of the argument is inherently flawed. When we make taxes about winning or losing, we miss the entire point of taxes; to raise revenue so that our government can run adequately. Our country has gotten entrenched in this idea that we should not have to pay taxes. To me, not paying taxes is the same as not wanting to be a part of the society.
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ReplyDeleteI think eliminating credits and deductions would benefit Americans with fewer itemized deductions, fewer kids, fewer healthcare benefits, and lower retirement savings as the article states. It seems like an unfair form of taxation to me
ReplyDeleteIf the lower class does not benefit for the tax expenditure then what is the point? and if they are the ones losing and the middle class will pay more then who does it really help?
ReplyDeleteI agree with Deangelo, if it is just going to hurt though who are already struggling then its not worth it. People say tax the wealthy because they can pay them, which they can! So tax em! There's pros and cons to everything in life.. I guess that includes being rich.
ReplyDeleteYes, there are always winners and losers, but winning and losing mean very different things to different parties so that is something to consider.
ReplyDelete