Don’t sleep on Ted Cruz. The next five weeks look very, very good for him.

[Bigun]

That would be a huge surprise. This has been discussed for decades, and zero has been done.

Tax preparers, CPAs, Tax Avoidance investment vehicles, investment advisors, attorneys, tax havens, government tax collection employees, all would lobby against meaningful tax reform.

One of many reasons why we need to do it!

[MACVSOG68]

That would be a huge surprise. This has been discussed for decades, and zero has been done.

Tax preparers, CPAs, Tax Avoidance investment vehicles, investment advisors, attorneys, tax havens, government tax collection employees, all would lobby against meaningful tax reform.

The Debt Commission under Bowles and Simpson recommended a very reasonable approach in their report.  It got nowhere, but IIRC, Ryan as Budget Chairman proposed a similar tax structure.  Some of the current candidates have also talked about a dramatic simplification of the code.  Carley talked about a 3 page code which was simply silly.  But getting rid of the numerous loopholes, credits and a lot of deductions while lowering rates is not only possible, but getting more and more talked about.  Unless the Dems get trounced in November though, it's dead.

 

[Jazzhead]

While I don't think the FairTax has a snowball's chance in hell unless there's a dramatic shift to the right in the House and Senate, I do believe we are moving toward a greatly simplified income tax structure.

Exactly - a flatter, broader Federal income tax is doable.  Elect Kasich and a GOP Congress and you're going to start to get there.   The Fair tax is a fantasy because the costs of transitioning to it, in the context of our federal system, are overwhelming.   The Fair tax advocates get very snippy if you don't appreciate its wonderful benefits.  Its not-so-wonderful detriment is that the states would never permit the Fed to switch to a Fair tax - they're the ones that get to tax consumption.   

[MACVSOG68]

Exactly - a flatter, broader Federal income tax is doable.  Elect Kasich and a GOP Congress and you're going to start to get there.   The Fair tax is a fantasy because the costs of transitioning to it, in the context of our federal system, are overwhelming.   The Fair tax advocates get very snippy if you don't appreciate its wonderful benefits.  Its not-so-wonderful detriment is that the states would never permit the Fed to switch to a Fair tax - they're the ones that get to tax consumption.

On Kasich's web site, he only talks about how he handled Ohio, not how he would cut the deficit and debt.  And I didn't see anything about tax reform.  Anyway, one of the biggest hurdles to anything like the FairTax is the 16th Amendment.  Many, including me believe it would simply be another way of taxing, not the only way.  And repealing the 16th would have no chance at all.  Lets not forget that half the Country pays no income tax now.  Why would they want to exchange that for a sales tax?

[Bigun]

Exactly - a flatter, broader Federal income tax is doable.  Elect Kasich and a GOP Congress and you're going to start to get there.   The Fair tax is a fantasy because the costs of transitioning to it, in the context of our federal system, are overwhelming.   The Fair tax advocates get very snippy if you don't appreciate its wonderful benefits.  Its not-so-wonderful detriment is that the states would never permit the Fed to switch to a Fair tax - they're the ones that get to tax consumption.

Why not? The states could actually significantly LOWER their current sales tax rates by simply adopting the federal base under the Faritax AND they get paid for collecting the federal portion of the tax!

Sounds like a win win to me!