Progressive Proposal for Fair and Simple Tax Reform

[NAO]

From The Center for American Progress
http://www.americanprogress.org

...snip...

As a new presidential term and a new Congress begin, the Center for American Progress has launched the Progressive Priorities Project to provide policymakers and the public with a positive vision for progressive policymaking supported by a series of new and bold policy ideas in priority areas identified by American Progress.

A Fair and Simple Tax System for our Future: A Progressive Approach to Tax Reform is the sixth of approximately a dozen papers in the series that American Progress will issue over the course of two months. In addition to providing broad policy recommendations, each of the papers in the series proposes specific steps that policymakers can take to achieve the broader policy goals. All of the papers in the series will be compiled and published as a book early this year.

Executive Summary

The current tax code is unfair, unnecessarily complex, and has failed to meet our national priorities. Today, we are faced with a fundamental choice for our tax structure: continue the policies that have failed the vast majority of taxpayers and our country for the benefit of a few, or reform the tax system consistent with progressive principles. It is time for a fairer and simpler tax system that reduces the massive deficits created over the last four years, strengthens the middle class while honoring their work, and creates opportunity for Americans of all income levels to succeed.

Restoring a fair, simple, and pro-opportunity tax system, while generating the resources necessary to meet our looming challenges, requires moving our tax system in an ambitious new direction. The Center for American Progress proposes a comprehensive tax reform plan that rewards hard work and promotes shared prosperity. We propose a plan that would tax each kind of income according to the same rate schedule, whether the income is derived from wages, salaries, capital gains, or dividends. Our plan shifts the share of taxes away from the regressive payroll tax and onto a restructured income tax. It reduces complexity by establishing a simpler, more progressive three-rate structure and it eliminates the Alternative Minimum Tax, in addition to closing corporate and individual loopholes. Our plan enhances opportunity by reducing the deficit to strengthen the economy and it promotes retirement savings for millions of Americans who currently receive no savings incentives through the tax code. Furthermore, our plan improves the Earned Income Tax Credit and expands the number of families eligible to receive the federal child tax credit. Ultimately, the Center for American Progress's reform plan increases the take-home pay of low- and middle-income families and generates the funds our country needs to meet its vital domestic and national security commitments.

Full Report in pdf
http://www.americanprogress.org/atf/cf/{E9245FE4-9A2B-43C7-A521-5D6FF2E06E03}/PP_TAX_LAYOUT2005.pdf

Report Summary in pdf
http://www.americanprogress.org/atf/cf/{E9245FE4-9A2B-43C7-A521-5D6FF2E06E03}/PPP_TAX_SUM.pdf

[RC]

1. If we allow the overhaul the tax code with these criminals in place

they will steal the rest of the country's money. Lets get them in jail first, then talk about it.

[Betsy Ross]

2. How about zero deductions and zero tax

for those with income under $200,000? Over that, you pay 15% on all income.

[NAO]

3. The point of the "Center for Am. Progress" proposal is that it's realistic

It is a sound, serious policy proposal. It is designed to be fair to everyone, progressive, and workable.

We cannot expect to be taken seriously if our proposals are too extreme or come off as rhetorical rather than realistic.

[RUMMYisFROSTED]

4. Fun with the tax calculator!

Household income of $1M

Compared with current policy, 96.1% of tax filers in your income range of $1,000,000 and higher would receive, on average, a tax increase of $360,646. An additional 0% would see no tax change.


It doesn't lay a hand on the top 5%.