Twenty seven years ago President Ronald Reagan was arguing for Tax Reform. And to a certain extent in 1986, reached a Bi Partisan Agreement with Congress. That accomplished a lot of that. Eliminating Tax Loopholes to lower Tax Rates on everyone. The problem, is we’ve been adding to that cleaned up Tax Code ever since. With things like the Child Tax Credit, awarding company’s that ship jobs oversees etc. And what we should be doing again, at least in the short term is moving back to. What President Reagan and Congress accomplished back in 1986. But leave in things like the 10% Tax Rate, maybe the only positive thing. That came out of Bush Tax Cuts 2001. Eliminate Corporate Welfare and lower the Corporate Tax. So American Business can be more competitive.
I like the idea of eliminating Tax Loopholes to lower Tax Rates in the short term. But long term, I would like to throw out the current Tax Code. And replace it with something a hell of a lot simpler. A Tax Code that taxes people based on what they take out of society. Instead of what they produce for society. Eliminating the Income Tax all together and replacing it with what I call a Progressive Income Tax. Taxing things that people need to survive, Basic Necessities. At a low rate, like 5% and taxing Luxury Items at higher rates. Things that people don’t need to survive and we could eliminate all Corporate Welfare. Including Agriculture Welfare. But leave in the Earned Income Tax Credit and perhaps few others but eliminate most Tax Loopholes.
President Reagan was right by in large about Tax Reform in 1985-86. And the 1986 Tax Reform Act accomplished a lot of what we needed to do. And what we should look to be doing in the future. And is something that we can build on in the future as we hopefully soon move to Tax Reform.