An Interesting Tax Plan

One of my favorite Congressmen is Representative John Campbell, a Republican from California.

Representative Campbell states on his website:

Many of you know that I am the only member of Congress with a Master’s Degree in Business Taxation (MBT). I received that degree from USC (Fight on!) in 1977. I am a CPA and once prepared tax returns for a living. At that time, I learned the Internal Revenue Code of 1954. We now have the Internal Revenue Code of 1986. I believe we may soon see the Internal Revenue Code of 2013.

But, what will that code look like? We ought to “reach for the stars” here. Let’s not just tinker with the tax code and change it a little bit. Let’s see if we can get 218 votes in the House, 60 votes in the Senate and the signature of whoever is president on a complete restructuring of the Code that would make it flatter and simpler.

This is the link to Representative Campbell’s tax proposal. After reading the proposal, there is a link to another site where you can take an opinion poll expressing your ideas on the proposal.

Here are some of the highlights of Representative Campbell’s proposal:

Eliminate all deductions except: charitable contributions, home mortgage interest and non-elective medical expenses.

Go to 2 tax rates: one for incomes below $100,000 (maybe 20% under this scenario) and a second for incomes above that (something like 28%).

Allow corporations to deduct dividends from their income, but make dividend income taxable as ordinary income with no preferences to individuals.

Eliminate any preferences for capital gains, except for non-depreciable assets held over 5 years.

Implement a minimum tax so that anyone with any income at all pays 2% of their gross income or a minimum of $100.

Please follow the link to read the details of the proposal and record your ideas.

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