Simplifying the tax code would produce "windfall winners and losers" among taxpayers. That's the word from an internal study the Treasury Department conducted in 2002. The winners would be the rich, the losers -- the rest of us. President Bush has called for making a simplified tax code the centerpiece of his second term. The document -- recently leaked and posted on author Ron Suskind's website -- shows a desire for simplicity but warnings of social upheaval.
It points out a trade off: A regressive system is the simplest, but it taxes the poor and middle class more heavily than the wealthy. It also discourages savings and investment. A progressive system taxes the wealthy at a higher level -- but encourages socially beneficial economics like home ownership and savings and investment. But it is the most complex type of tax code. (WashPost)
No comments:
Post a Comment