I’m a big fan of updating the tax codes. I think everyone would agree that they’re a mess in the current form. Of course, there are as many solutions as there are people in the country. I’m waiting with baited breath on what’s to come.
[ Bush Plans Tax Code Overhaul (washingtonpost.com) ]
…the president will pursue a tax system where all income — whether from wages, dividends, capital gains or interest — is taxed only once…
…The administration will also push hard for large savings accounts that could shelter thousands of dollars of deposits each year from taxation on investment gains…
…To pay for those large tax cuts, the administration is looking at eliminating both the deduction for state and local taxes, and the business tax deduction for employer-sponsored health insurance…
Looks like some interesting stuff, as well as some not-so-pleasant stuff. The health-care thing will strike a pretty big nerve with business. It’s one of the major reasons hiring has not kept pace with the growing economy. Adding to that burden doesn’t sound wise to me.
Tax-sheltered savings sounds nice. Japan has done this for a while, and personal savings was a huge reason the full effects of the recession was blunted in the 90′s. We need more of that kind of thinking here.