The US tax system us broken, inefficient and promotes crony capitalism. The Tax Foundation has a great analysis, explanation and proposal that is a dramatic improvement over the current system with 5 key points
1. We have a federal tax system that is complex, costly, and political, centered on taxing both individual and business income at progressive tax rates and littered with various preferences.
2. As top priority, lawmakers should simplify the tax code so that taxpayers can understand the laws and the IRS can administer them with minimum cost and frustration.
3. Lawmakers should reduce the economic drag caused by the tax code, not through preferences that are political, targeted and complicated, but by broadly improving incentives to work, save, and invest through lower marginal tax rates on individual and corporate income.
4. One proposal is revenue-neutral that can greatly improve economic growth, increasing GDP by 2.3 percent in the long run, adding 1.3 million jobs, and raising wages by 1.3 percent such that after-tax incomes for the bottom 40 percent of earners increase by nearly 3 percent on average.
5. Taxing consumption as opposed to income raises substantial revenue in a more economically efficient way.
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