Reforming Federal Corporate Tax and Individual Income Tax: A Step in the Right Direction

ALEC ^ | 2-26-14 | Will Freeland

[ThethoughtsofGreg]

Earlier today U.S. Representative Dave Camp, Chairman of the House Ways and Means Committee, released a bill designed to fundamentally reform both the federal corporate and individual income tax (press conference video here and executive summary here). America is far overdue for such reform. As Camp points out in the Wall Street Journal:

“According to Nina Olsen, the National Taxpayer Advocate at the IRS, Americans overall spend over six billion hours and $168 billion every year to file their returns. This is stark testimony to the complexity of the tax code. Meanwhile, owners of small businesses face tax rates as high as 44.6%, while the total (state and federal) U.S. corporate rate, 39.1%, is the highest in the industrialized world.”

Representative Camp is right: the U.S. federal tax code is extremely uncompetitive. The U.S. has the highest statutory and effective corporate tax rate in the world. And that’s before shareholders pay dividend and capital gains taxes on the distributed profits and gains already taxed once via the corporate income tax. The tax rate on entrepreneurs and small businesses filling their business income as a “pass-through entity” personal income tax code aren’t much better, as two Tax Foundation maps demonstrate:

[E. Pluribus Unum]

That's racist!

[Flintlock]

Can ‘em ALL! Fire all IRS personnel.

Flat Tax! Administered by the GAO.

[TurboZamboni]

Would give the IRS more time to harass us.

Does it come with an IRS staff cut?

[First_Salute]

Integrity is by far the *much* greater problem, in corporate America.

When the exec’s have reduced their gross and net rewards down to 6 digits, then one might listen to their complaints, as they might have a chance to justify their so-called merit pay.

No sense greasing the palms of such greedy, lying cronies.

They have to get clean, before they have standing to argue about reducing the cost of doing business, which cost is taxes.

Let’s see the executive cut its own cost.

[wac3rd]

This is the Conservative/Libertarian proverbial “wet dream” of moving to a flat tax.

The “Progressive” income tax foisted on us from FDR is based on a Marxist theory of hammering the rich to pay for the poor.

Liberals will scream publicly, but their rich donors will privately celebrate...in fact we should all celebrate, because the coffers will be much fuller.

It contradicts the victim/race card/Lefty argument of punishing success for forced confiscation to another the Government prefers...but who knows, it’s a start.

[SoConPubbie]

When the exec’s have reduced their gross and net rewards down to 6 digits, then one might listen to their complaints, as they might have a chance to justify their so-called merit pay.

I don't think we need the class-warfare crap here on FreeRepublic.

We believe(generally) in a Free-Market approach to business minus the Cronyism or attempt to influence elections by Elitist types in the corporate world.

[DJ MacWoW]

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[Amendment10]

The only thing that patriots need to understand about federal tax reform is the following. Justice John Marshall had officially clarified that Congress is prohibited from laying taxes in the name of state power issues, basically any issue which Congress cannot justify under its constitutional Article I, Section 8-limited powers.

“Congress is not empowered to tax for those purposes which are within the exclusive province of the States.” —Justice John Marshall, Gibbons v. Ogden, 1824.

So Congress should be taxing mainly for military, mail services and the federal entities indicated in Clause 17 of Section 8. No Obamacare Democratcare or other things which cannot reasonably be justified under Section 8.

[mistfree]

Time to unload my turbo tax stock!