May 25th, 2010
02:57 PM ET
4 years ago

Tax reform plan could reduce tax bite for many

New York (CNNMoney.com) – Tax reform. For years, economists, tax experts and lawmakers have pushed for it, to no avail.

But now there is a bipartisan tax reform proposal from two prominent senators that has earned praise in policy circles and may jump-start serious consideration of the idea over the next year - a year marked by growing concern over U.S. debt.

Done right, experts say, tax reform should simplify the tax code, increase fairness and apply taxes at lower rates to a broader base of activities.

Among the goals: decrease tax avoidance and increase economic competitiveness.

The Bipartisan Tax Fairness and Simplification Act of 2010 - put together by Sen. Ron Wyden, D-Ore., and Sen. Judd Gregg, R-N.H., - arguably could do much of that to some degree.

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Filed under: Congress • Taxes
soundoff (15 Responses)
  1. Eric

    Until the tax rate is the same for ALL Americans, there is no fairness.

    Instead of tax reform, how about spending reform?

    May 25, 2010 03:04 pm at 3:04 pm |
  2. Rob Johnson

    An encouraging sign that bipartisan solutions are still possible to some of our nation's toughest problems.

    May 25, 2010 03:06 pm at 3:06 pm |
  3. mike

    This is way too close to a flat tax, it will never fly, not enough loopholes for politicians and business to pay NO tax (at least until Obama picks them for a Cabinet Post).

    May 25, 2010 03:08 pm at 3:08 pm |
  4. ATL Guy

    This will be pushed by the Republicans until Obama supports it. Then all the Republicans will run away from it and slam it as a government takeover of your taxes. Those people, and their leader Sarah Palin, are idiots.

    May 25, 2010 03:25 pm at 3:25 pm |
  5. Richard Larson

    Anything that would simplify the code would help everyone, individual, small businessman, and corporate executive. The biggest problem, and the most fiscally productive change would be to immediately nullify loopholes and avoidance schemes brought about by permissive accounting practices for both corporations and the very rich.

    Absent a VAT (Value Added Tax) the corporate code must be cleaned up especially for international corporations who use tax havens to lessen their taxes. A simple Flat Tax on all corporate earnings with no exemptions would be the most beneficial tax code possible.

    The problem is that there is not enough individual, nor collective spine in all the congress or the executive branch to enact this kind of change. Too many people are beholden to corporate influence, read campaign contributors and contributions, to do anything that would increase potential taxes on their financial supporters.

    Finally, the fact that there are American corporations that pay no state or federal taxes on massive earnings is unamerican. They are engaging in unamerican economic activities. They must be forced to pay no less than 10% of their total international tax liability as a minimum federal tax.

    May 25, 2010 03:29 pm at 3:29 pm |
  6. Tulsa

    Let's see it men! It's got to be better than the crappy system we have now.

    May 25, 2010 03:32 pm at 3:32 pm |
  7. Victim of GOP Taliban

    It's not fair that the wealthy that own property or their own business can zero-out and not pay ANY tax with all the loopholes. Time to make the tax code fair and everybody needs to pay the same rate. Stop giving preferential treatment to the rich and powerful.

    May 25, 2010 03:34 pm at 3:34 pm |
  8. Dean

    The entire tax code is 16,845 pages long. No one actually knows all of the tax code. It's mere size makes it easy for cheaters to make use of loopholes that may or may not be legitimate for them.
    A one page tax code would greatly reduce costs thru elimination of paperwork and tax specialists and would increase the amount of revenue that it would raise. It would also be fairer. Everyone would contibute something with the poor paying very litle and the wealthy paying probably more than they do now.
    The tax code would read........"Everyone pays 15% of their total income".

    May 25, 2010 03:38 pm at 3:38 pm |
  9. SocialismBad

    Done right, experts say, tax reform should simplify the tax code, increase fairness and apply taxes at lower rates to a broader base of activities.
    ====================================================

    How about we just get the 47% of the American people that don't pay any taxes to ante up?!!! That would increase "fairness" in my book!

    And let's get rid of some government entitlements while we're at it! Let's end The Great Entitlment Society we have built. and that is CRUSHING US.

    May 25, 2010 03:50 pm at 3:50 pm |
  10. S.B. Stein E.B. NJ

    I'd like to see the plan. My questions are how quickly would this pass the House and Senate; would this benefit anyone and who would it be; would the IRS still be in charge of this? I would like to see a simplified code as well, but would it really work? If it didn't, could we go back to the old one if this new code did produce more money?

    May 25, 2010 04:03 pm at 4:03 pm |
  11. Bedtime for Obonzo

    Good, I hope it happens. Broader, lower, and flatter. It's scandulous that half the people in this country pay no income taxes. If they paid only a couple of percentage points, then perhaps they'd have a reason to care about out of control government spending.

    May 25, 2010 04:06 pm at 4:06 pm |
  12. bennie new york

    More regressive "reforms" of our tax system. There is no social mobility in this country whatsoever. If you're poor and you work, this bill is the worst thing possible. Normally the GOP would complain about the Burden of Taxation stifling work ethic, but I'm sure those hypocrites won't mind this time around since we're not raising taxes on their wealthiest donors. I'm sure the Democrats with their similar love of campaign money won't protest either.

    May 25, 2010 04:07 pm at 4:07 pm |
  13. bennie new york

    And why are we in essence cutting taxes when we're in so much debt? Again, you won't hear any conservatives complain- they can pretend to be budgethawks all they want, but in any situation they will blindly vote for tax cuts.

    May 25, 2010 04:09 pm at 4:09 pm |
  14. Anonymous

    North Eastern Liberals, regardless if followed by a R or a D (note, Collins, Snow) are still North East Liberals. I trust them to continue spending money we do not have, and to continue raising taxes we can no longer afford. They say they do it "for the children" who will be stuck with the disasterous results for life.

    May 25, 2010 04:21 pm at 4:21 pm |
  15. Randolph Carter, I'm no expert, but

    It's not that taxes are too high, morons. They're lower than they've been for 50 years. It's that your wages haven't gone up in 30 years thanks to trickle down, deregulation-fueled outsourcing and anti-union "right to work" nonsense. Now bend over for your corporate overlords, consumerbots. Have a nice day!

    May 25, 2010 04:26 pm at 4:26 pm |