Revenooer Rants: Tax reform — where art thou? (opinion)
For whatever reason, this exercise has eluded the attention of the current crop of politicians, so let’s take a look at what some of their replacements may have in mind at the present time.
Imposition of the “Buffett Rule,” requiring those earning more than $1 million per annum to pay at least 30% of their income in taxes
Creation of a “fair share surcharge” – an extra 4% surtax on folks making more than $5 million each year
Cut in taxes for “hard working families” (Aren’t we all?)
Limitation in value of certain deductions to a 28% rate
New 15% tax credit for employers who share profits with their workers (Don’t they all? Isn’t that what salaries and wages represent?)
Simplification of tax filing and provision of “targeted” tax relief to small businesses (Heard that one before?)
Imposition of a tax on “high-frequency” trading (We thinks we’ve heard that one too.)
Increase in the top estate tax rate to 45%
BERNIE SANDERS (No surprises here)
Increases in top individual tax rates for just about anybody whose income is of significant size, all the way up to 52% on income of $10 million or more!
Repeal of the favorable tax rates on capital gains and certain dividend income for married folk whose income exceeds $250,000, and increase of the 3.8% Obamacare surtax (up to 10!) on net investment income
Increase in the estate tax rates, up to a whopping 55% for the value of an estate in excess of $50 million, plus, of course an “additional billionaire’s surtax” of 10%!
Closure of “other loopholes in the estate and gift tax, including valuation discounting!”
Enactment of a “Wall Street” tax on trades of many stocks, bonds and derivatives!
Elimination of the Social Security wage base ($118,500 for 2016) so that every bloke pays the same percentage of their income!
Reduction in the schedule of individual income tax rates – to a high of 25%
Cut in the corporate maximum tax rate to 15%
Elimination (You heard it!) of the estate tax
Repeal of Obama care (You heard that one too!)
No question where all these folks stand — however, it’s one thing to pontificate now, and quite another after first being elected to later ram all of anybody’s ideas through the Congressional morass.
There’s a long, long way to go, folks!
CONSULT YOUR TAX ADVISER – This article contains general information about various tax matters. You should consult your CPA regarding the implications to your particular situation. Jeff Quinn is a CPA, recently retired from Ashley Quinn, CPAs and Consultants, Ltd., with offices in Incline Village and Reno. He welcomes comments at email@example.com.