I would like to submit for consideration the Kearns-Land tax reform plan, developed in consultation with a friend from the other side of the political spectrum:
All tax deductions are eliminated. The sole purpose becomes government funding.
Similar to the current system, a graduated tax rate is used. Higher incomes pay at a higher rate.
Everybody pays something. The criteria would be something like: If you can afford a cell phone, you can ante up. The entry level tax rate could be nominal (say $20), but it gets you a seat at the table.
Income is defined as cash or wages that you see for the first time in a calendar year.
For those concerned about the estate tax, inheritance would be handled similar to the above. Cash or other liquid assets are taxed at the appropriate rate. Businesses and farms that are passed down would not be taxed unless they were sold or otherwise “cashed out.”
Self-employed persons pay tax on net profit after operational cost, wages paid, etc.
I believe this framework could be the basis for the first real tax reform in may years. Thoughts?