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Obama’s Vision of Tax Reform

By Doug Bandow on 12.10.10 @ 7:35AM

The president reportedly may launch a campaign for tax reform. According to the New York Times:

President Obama is considering whether to push early next year for an overhaul of the income tax code to lower rates and raise revenues in what would be his first major effort to begin addressing the long-term growth of the national debt.

While administration officials cautioned on Thursday that no decisions have been made and that any debate in Congress could take years, Mr. Obama has directed his economic team and Treasury Department analysts to review options for closing loopholes and simplifying income taxes for corporations and individuals, though the study of the corporate tax system is farther along, officials said.

The objective is to rid the code of its complex buildup of deductions, credits and exemptions, thereby broadening the base of taxes collected and allowing for lower rates - much like a bipartisan majority on Mr. Obama’s debt-reduction commission recommended last week in its final blueprint for reducing the debt through 2020.

What would be the perfect Obama tax reform? A very short tax form:

What did you make?
Send it in!

martin j smith| 12.10.10 @ 8:06AM

All economic issues starting with the new congress in 2011 will be start of the real test of political wills. In my view the majority of Americans voted against Obama and the Left agenda and the question in my mind is to what extent will the Republican Leadership hear and respond to that opposition. Then there is this: What didn't these voters, who voted NON to OBAMA et al really want ? In my view the first test of leadership will be determined when someone in the Repub leadership actually tells Obama: We won this election" and our agenda reflects what the majority of Americans want. Not what you want !!!!!!!!!!!!!!!. Be respectful--yes. Be cordial ? yes But be very firm
that the American people oppose the deficit that Obama et al are going towards. If there is grid lock so be it. Yes, hold Obama hostage to the idea that the American people do not want to be plundered and drawn down. And, that means a tax code that is aimed at stimulating growth. Once this is established there will be open politcal warfare and in the end it will be the election that decides our fate. If there is one.

martin j smith| 12.10.10 @ 8:12AM

Regarding this so called Tax deal on the Bush tax cuts: I must say this that the true intentions of the Left peanut gallery will be known very soon and that is if the "deal" is passed or not. They could kill it and I hope they do. But I fear they wont. Why ?
They mwill look even more idiotic than they already do and that would be wonderful. But bad for the economy at the moment. It will also demonstrate further who Obama and the Left really are.

Curly Smith| 12.10.10 @ 9:26AM

It seems to me that the Obama Tax Proposal is just like the "Bush Tax Cut Deal" - it's designed to cut the legs out from under the incoming Congress.

The incoming Congress won't be happy with having existing tax rates portrayed as "cuts" when the deal actually raises other taxes and hurts the recovery. The incoming Congress will recognize that it was an inside-the-beltway deal among Establishment Politicians to have a "compromise show" that allows the Republicans to be blamed for the Democrats not raising taxes and rewards the Democrats in the process. The Democrats and Establishment Republicans hope that the two-year stall will result in a "more responsible" Congress being elected in 2012, just like Obama hopes his "Tax Plan" will rally cries of "you can't rewrite the tax code until Obama unveils his fair, just and righteous plan!".

The best that I can say for the "tax cut deal" is that Republicans stood on their core principle of rushing in to save Democrats from the mess they created and making things worse in the process.

Have you considered| 12.10.10 @ 9:35AM

Most people don't know that our constitution provided for a FLAT TAX. See Art 1, Sec 9 which contains a PROHIBITION of Direct Taxes except in Proportion to the Census. Alexander Hamilton at Federalist #36 states the reasoning as: ""Let it be recollected that the proportion of these taxes is not to be left to the discretion of the national legislature, but is to be determined by the numbers of each State, as described in the second section of the first article. An actual census or enumeration of the people must furnish the rule, a circumstance which effectually shuts the door to partiality or oppression. The abuse of this power of taxation seems to have been provided against with guarded circumspection. In addition to the precaution just mentioned, there is a provision that "all duties, imposts, and excises shall be UNIFORM throughout the United States."" Think about the impartiality that was written into our founding documents. They understood the impulse to "tax the rich" and they found that concept to be contrary to their ideals of fairness. The passage of the 16th amendment In Effect removed the "guarded circumspection" and allowed for the "abuse of this power of taxation". This basic fairness is what we have lost as Americans.

martin j smith| 12.10.10 @ 10:12AM

Curly Smith, actually the Socialist dems and Obama together saved the repubs from themselves thru their ongoing talk of classs warfare. These are gems for political advertisements. Lookmif the Socialist scuttle the "agreement" that would be a real win if they don't then they still lose in the sense that it challenges their sincerety and their principles--whatever the heck they are. As for Obama his speech about Repubs is a gift if it is taken --2011 will give tea Partiers an opportunity to twist the arms of Boehner and MaConnell and make noise that regular repubs will not. Lets waite and see before we go to any funerals heh ?

Oldefarte| 12.10.10 @ 12:50PM

The problem is NOT the tax code etc, but GOVERNMENTAL SPENDING that needs to be addressed. All of our governments simply waste taxpayer monies provided to them in tax payments. Hard working/tax paying income producers watch as the fruits of their labors are pee-pee'd away on such asinine things as foreign aid, farm aid, WELFARE, space travel, excessive military hardware, unionized and incompetitent school administration/management,etc. Additionally, governments do not provide adequate societal protections such as border/immigration enforcement and proper use of militaries in fighting foreign enemies. In total, our governments are mis-managed, inefficient and wasteful. if proper/necessary business management techniques and procedures were applied to our governments [as they are in private sector business on a profitable basis], we taxpayers would get more/adequate bang for our tax payment bucks. We need to begin to elect professionally qualified politicians to run/administer out governments, and then to hold their feet to the political fire of elections thereafter!!!!!!

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