Tuesday, March 14, 2006

Tax bracketing

I’m not opposed to bracketing, (progressive) taxes out of principle, but because it induces increasing complexity and unanticipated inequities. Each real or perceived inequity induces another tax exception or additional loop hole. That’s a significant cause of our tax complexity and inequities. If we could, a flat tax rate for all types of income tax is preferable.

Each instance to “fix” a specific inequity, generally results in the creation of new inequities. Tax regulations should be drafted with a “broad brush”. Minute micro-fixes don’t work. When congress heeds the lobbyist’s pleas to alleviate their client’s tax burden that they perceive as excessive, the “fix” is an inequity upon another lobbyist’s client. Lower income taxpayers are not large contributors of political funds. Congress is not amiable to the pleas of non-contributors that are not organized into strong voting blocks.

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