Taxes should be fair
Americans feel our tax code is complicated, cumbersome, uncompetitive, and unfair. Since it takes 74,608 pages to explain our tax code, yes, the tax code is complicated.
The majority of small businesses spend 40 hours complying with federal taxes each year. Additionally, 53 percent of all business income is taxed through the individual rate of 39.6 percent.
Additionally, our tax code is uncompetitive. America’s corporate tax rate (35 percent) is the highest in the developed world. Twice as many U.S. companies have moved to a foreign country to trim their U.S. tax burden in the last 10 years than in the 20 years prior.
Two action items that relate to corporate taxes were recommended by the 3,000 Cohen Research Group interviewees (1,000 Republicans, 1,000 Democrats, and 1,000 No Party independents). First, with 76 percent support, bring the money back home. That is, the 500 largest American companies hold over $2 trillion in assets overseas. Citizens want to give these companies the opportunity to bring these assets back home at a one-time lower tax rate.
Second, 62 percent of Americans agree the corporate tax rate should be lowered from its current 35 percent to 25 percent, which would make America more competitive with other countries.
The U.S. tax code is unfair. Upper-income individuals and corporations reap the vast majority of the benefits from deductions and tax credits.
When more than 3,000 fellow citizens were asked what tax reform was needed the most, by a 2-1 margin the No. 1 response was “create a tax system that is simple and easy to understand.” They also said our Congress “should pass a tax reform with the goal of radical simplification, in which virtually all deductions, tax credits and other special interest loopholes are eliminated.”
Regarding individual taxes, four action items are recommended. First, income is income. The majority of Americans feel that income from capital gains, dividends, and salary should ALL be taxed at the same rate versus the current practice in which capital gains and dividends are taxed at a considerably lower rate.
Second, 61 percent of Americans concur that tax rates can only be responsibly reduced by eliminating or capping some tax deductions such as 1) charitable deductions, 2) property tax, 3) mortgage interest, 4) employer-provided health care, 5) Keogh, defined benefit and defined contribution plans, and 6) capital gains and dividends.
Third, 75 percent of Americans feel the tax returns for individuals should be limited to two pages. And finally, 74 percent of Americans feel a “collections czar” should be appointed and vigilantly start collecting the $400 billion of what money is legally owed to the federal government but is never received.
Besides the six heretofore mentioned action items to modernize individual and corporate taxes, 67 percent of Democrats, 67 percent of independents, and 74 percent of Republicans say tax reform should be revenue neutral and be geared to reduce the federal deficit ($19.1 trillion; 75 percent of GDP).
It is apparent that the overwhelming majority of Americans want these six tax issues resolved, making our tax structure uncomplicated, not cumbersome, competitive and fair. Determining which presidential candidate, U.S. senators, and U.S. House of Representatives will aggressively work to clean up our tax code is our responsibility.
—Steve Corbin