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For the Wealthy, a 28 Percent Tax Solution -

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EVERYONE knows that America’s tax code is a mess, yet despite considerable talk when elections come around, we’ve done nothing substantial to fix it. What is odd is that there is broad agreement on what should be done. We should strive to get the “lowest possible tax rates on the broadest base,” as five well-known conservative economists put it recently.

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Adam McCauley

In a nutshell, the fewer deductions and other “tax expenditures” we have, the lower the rates can be. That part is simple.

The problem is that cutting rates is more popular than closing loopholes, especially those like the mortgage-interest deduction that are used by millions of taxpayers. But there is a possible solution.

I call it the modified Reagan 28 plan, or just the “28 plan” for short. It is a simple framework for thinking about tax policy. Though I’ve named it in honor of Ronald Reagan, it is similar in many ways to the ideas proposed by the Bowles-Simpson commission, which is a good starting point for any serious discussion of tax reform.

Is tax reform on the table at all?

people are obviously talking about it now because it is an election year but the willpower to actually change it after voting is a different story

I'm guessing it's something that Congress cannot get the people together to actually work on.

It's greatest utility seems to be as a wedge ...

Not sure why I'm putting this here, except that I overheard a convo in the gym about Norway's tax rate (roughly 30% for everyone). Healthcare and education is free and high-quality.

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