Wednesday, November 14, 2007

Another Tax Proposal


Don't laugh too hard--it just might work, if the proposal is indeed revenue-neutral. Some specific provisions are essential:

  • The $100,000.00 figure should be tied to an inflation index to protect upper-middle-income folks from drifting into the higher category.

  • A more gradual transition to the upper bracket may be needed so that, for a person earning $98,000.00, a 4% raise does not give him a big cut in take-home pay.
  • "Income" must be defined as gross, from all sources and activities; no "adjustments," no "allowances," no deductions, no loopholes.

Like any proposal, this one has its benefits and drawbacks. Readers can identify those and sort them out. In general, though, it is a promising attempt to spread the tax burden more fairly.

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