Tax Reform Questions: Your Answers!

Our CountaUsers are the best! We published our first post on tax reform questions and many of you came back with great answers involving concrete policy recommendations and articulate rationales.

Here’s a random sample of some of the best comments. Keep ‘em coming! Democracy depends on it.

"A flat tax without credits, exemptions, etc., that tend to benefit the wealthy, seems the simplest approach--with an increased sales tax on luxury items or those items over twenty thousand dollars, for example. I disagree with any reform that increases tax on those making less than 250,000 annually or any tax reform that decreases taxes for the top 5%."- Keith

"Let's look at history. In the years after World War II, everyone prospered, everyone saw gains in their standard of living and wages. The top tax rates were north of 70% and as high as 90%. In the 1960s we started cutting taxes for the top earners. From 1966 to now, the middle and working classes haven't seen any gains in their inflation-adjusted take home pay, while the top 1% and especially the top 0.1% have continued to enjoy a higher and higher standard of living. History is clear on this. Trickle down doesn't work, the only way to lift all boats is a strongly progressive tax system with low rates at the bottom, and high rates at the top. Let the past be our guide."- Jack

"The Tax code is ridiculous. There should be a flat tax for individuals and businesses with extremely limited write offs. The personal tax should be something along the line of the first $20,000 non taxed then 15% for everything except medical, one home that must be your permanent residence, and donations to non political non profits only. No tax brackets, no extra personal exemptions. If you are married the first $30,000 and if you are married and have dependent children then $40,000 untaxed but, no difference if you have 1 child or 8 children. As a business you also pay 15% the only deductions, a flat amount for every employee you pay health insurance for, a flat amount deferral for R and D, with a 17% tax on the proceeds for a set # of years. That's it. A fourth grader should be able to look at the tax information on families and businesses and figure out the cost."- Terri

"We need a progressive tax system that taxes the rich more than the middle class and poor on a sliding scale. Our country already has problems paying for basic infrastructure like roads and schools. Cutting taxes even further, like with a flat tax, will make traveling between states on highways and paying public servants, like police, fire fighters, and teachers, even harder. 10% flat tax seems like a good idea in theory, but in reality that means $2000 in taxes from a $20k home and $1M from a 1B home. If you've ever been middle or lower class, you'll know that $2000 is way more valuable to that $20k home. If someone with a billion dollar income can't live well on $5M or 6M after taxes, how did they get so rich in the first place? A flat tax lets the rich off easy and bankrupts the government. Now, think about who wants to let the rich off easy and bankrupt our government"- Patrick

"The Boston Tea Party was a revolt against the Tea Act which was passed to support a bailout of the East India Tea Company. Yes that's right the colonists were against bailouts. I believe a tiered flat tax would be the best solution. Maybe 12 or 13% up to $150,000. Then once you break the $150,000 barrier that year your tax goes up to 15% and so on. It gets directly taken out of your paycheck. No loop-holes, write offs, or tax shelters to hide your money come April 15th. That's it. We all pay the same amounts."- Mike

"Taxing the rich won't make the poor any more wealthy. By taxing the middle class the way we do, it makes it difficult for anyone to want to strive to improve their life. Our tax code is not fair for any group. HOWEVER - in order to make it more fair, the ENTIRE tax code needs to be changed: business taxes, individual taxes, capital gains taxes, non-American income taxes, estate taxes, property taxes, sales taxes, use taxes, gift taxes, inheritance taxes, taxes on taxes ... we have way too many taxes and it needs to be streamlined for everyone. I would rather see businesses making multi- billion dollar revenues pay most of the taxes - not on the individual citizens. ALL of it needs to change. AT ONE TIME in order to be effective. Unless this can be done ... this is a moot point and worthless discussion. We can't put band-aid upon band-aid on top of the problem and expect 'change'."- Brad

What do you think? Comment here and let us know, or go check out the original post to see what everyone is talking about!

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— Asha Sanaker

(Photo Credit: 401(k)2012 via Flickr / Creative Commons)