It’s Fix the Tax Code Friday! And it’s been a long tax week for many of us. So, with tax returns fresh on your mind, I thought I’d ask my readers the same question that I ask my GTKYT tax pros:
If you had the opportunity to make one change in the tax code tomorrow – an extra credit, a disallowed deduction, whatever – what would it be?
I would make social security not taxable or at least less taxable.
I would treat social security like a qualified plan – current contributions excluded from taxable income, future distributions fully taxable – and never taxable to the extent one had basis in their account. Much simpler then the current way, and getting rid of double taxation. Almost as good as getting rid of the entire ponzi scheme.
Remove Social Security from the taxable income and quit penalizing those who have earned their Social Security income and also planned ahead so they wouldn’t have to live on the verge of poverty. I did and now I have to pay taxes on both.
Education Tax Credit –a needed balance for a monopolistic system.
Face it, public education is a unionistic monopoly, consisting of a top-heavy administration and a bottom-weary coalition of educators who feel abused by students, forgotten by parents, and beaten up by the public.
Independent schools (many of these being faith-based) go about their work with a fraction of the income, paltry benefits, and little technology, but end up doing a better job of educating per capita. Increasingly, Obama is putting added pressure on independent educators by throwing more taxpayer money into the unionized education system and undercutting the the tax advantage of donating and supporting independent (“private” and parochial) schools.
Those who send their children to independently educated schools (non-public) are treated worse than illegal aliens, who never pay taxes but who receive the benefit of education by the tax-payer. Vouchers are not the answer, but Education Tax Credits are the answer. This allows the tax-payer immediate recognition of the taxes already paid; the new law should also allow all tax-payers to get their tax credit directed to the school of their choice.
Education Tax Credits would begin to level the playing field and allow for true reform to take place in the education system. Reform will never take place without competition; competition keeps everyone on their toes.
I would eliminate the state taxes as a preference for the AMT . It would eliminate the AMT for most people. Raise the regular rate to compensate. The state tax preference puts too much tax burden on the people living in states with high income and real estate taxes.
The one change: As crazy as it sounds, I’d eliminate the concept of married people filing a joint return. Why shouldn’t each taxpayer file based on THEIR OWN income, deductions, etc. ? Let the one wage earner (if only one of a married couple) get ALL the child care, etc. deductions and the non wage earner NOT FILE AN UNNECESSARY RETURN. If both partners work, split the deductions evenly for an even number of children/dependents and come to a fixed agreement if an odd number of children/dependents.
The “marriage penalty” argument that some folks make seems BOGUS to me since when it comes to the bottom line, married filing jointly status allows you to pay LESS TAX on the same income than married filing separately. Married people should have the same tax rate as single people when you get to the bottom line. Isn’t that a “Fair Tax”?
Stop using the federal income tax to modify behavior. Seriously 70,000+ pages is a serious cramp on personal freedom. It takes way too much productive time away from businesses and individuals.
Has anyone ever taken the fact that the Inoime Tax we pay is Illegal toward us! It was ONLY intended for the Red Cross supporters during the Second world war and was to be dispanded after the fact..Yes this is true! Research it and stop income tax..they get enough already and do nothing with it.
make all elected congressmen and women as well as the senatators pay into social security and at retirement draw SSI like the rest of us instead of getting a full pay check ’til they die…and also have any and all bussiness, corporations ,and working people pay a flat 10% income tax…and have no elected official earn more than 200 thousand a year….
I would make significant cash gifts to individuals be tax-deductible (not to be confused with the 709 Gift Tax/$13,000.00 per person/per year thing which exists now)–this way it discourages people from being helpful to those who are not a 501(c)3–