Want Tax Reform? Axe Outdated Loopholes

The myth that the Top 1% don’t pay fair share of taxes is belied by IRS data showing they kick in 40% of fed revenue, almost 2xs their income share. Instead of Dems’ soak the rich mantra, how bout making Trump tax cuts permanent & close onerous loopholes?

As a former managing editor of a leading tax publication advising professionals, I always marveled at politicians’ varied calls for “fixing” the obviously out of control tax system. There’s been various efforts by Congress over the years to do just that, of course, the latest being the 2017 Trump-driven tax cuts that are soon set to expire. Much maligned by posturing Democrats, the cuts helped put more money in nearly all middle-class taxpayers’ pockets in a variety of ways and, ironically, gave “relief” to American businesses, which are among the most taxed entities in the world. The one-two punch helped spur one of the greatest “growth” periods in the nation’s history. As the WSJ editorial board recently noted: “The top 10% of filers [actually] caried 72% of the tax burden. Self-styled progressives will never admit it, but US income taxes are already highy progressive.” So, by all means, extend the Trump tax cuts.

Yet, of course, that’s not to say the Tax Code isn’t insanely complex, thanks largely to the myriad of tax incentives aka loop holes Congress enacted over the years so that my one volume tax advisor grew to three volumes and counting. Certainly, some incentives are still relevant & should remain untouched. But, there are gads of outdated and/or corrupted tax breaks that could & should be eliminated. Just think of how easier .. and fairer … tax filing time would be for both individuals & businesses alike, if just half of these loopholes got a deserving axe?

Davd Soul