Time: Tue Dec 16 05:36:52 1997 To: From: Paul Andrew Mitchell [address in tool bar] Subject: SLS: TAX REFORM: longest living RED HERRING?? (fwd) Cc: Bcc: sls References: Such active fish need to stay all wet in order to survive. /s/ Paul Mitchell, Candidate for Congress http://supremelaw.com <snip> > >I wonder if the Guiness Book of World Records has an entry for the >longest living RED HERRING?!?! This thing could easily get the >incumbents reelected until they all qualify for retirement! >ICE > >Dems, GOP Join To Overhaul Tax Laws > > By ROB WELLS > AP Tax Writer > > WASHINGTON (AP) -- Leading Democrats >have joined Republicans in the clamor to > > overhaul the tax system, broadening >debate on an issue certain to get plenty >of > attention in Congress next year. > > House Minority Leader Dick Gephardt, >D-Mo., and Sen. Edward Kennedy, D-Mass., > > plus the libertarian Cato Institute and >a San Francisco think tank called >Redefining > Progress, are promoting various ideas >following GOP-sponsored debates on a >flat tax > and national sales tax. Many other >alternatives are expected to crop up >when > Congress returns in late January. > > This fall, House Republicans revived >the tax reform topic with a series of > well-attended debates featuring a flat >tax advocate, House Majority Leader Dick > > Armey, R-Texas, and a national sales >tax proponent, Rep. Billy Tauzin, R-La. >Armey > and Tauzin limited the debate to >proposals already introduced as >legislation that > promised a single, flat rate. > > House Speaker Newt Gingrich, R-Ga., >applauded the debates. While not >endorsing > either option, he backed an effort to >scrap the income tax code by 2001 and >replace it > with a new system. > > Kennedy proposed a ``post-card tax >return with progressive tax rates.'' > > ``Democrats can and must seek genuine >tax simplification,'' he told the >National Press > Club last week. ``But the tax rate on >the post card cannot and must not be the >same > flat rate for all Americans.'' > > Gregory Jenner, national tax policy >director at the accounting firm Coopers >& > Lybrand, said, ``One of the things that >seems to be occurring frequently these >days is > the co-opting of issues of one party by >another. I don't think there is complete > > ownership of tax reform by one party.'' > > Kennedy also proposed a major overhaul >of the Social Security payroll tax, >which he > called ``our most regressive tax.'' >Currently, individuals pay a 6.2 percent >rate on all > wages up to $65,400; their employers >match that amount. > > Kennedy would remove the $65,400 cap >and use the proceeds to cut Social >Security > taxes to 5.3 percent for everyone. >``Everyone earning less than $80,000 a >year would > receive a tax break,'' he said. His >proposal would not affect the 1.45 >percent Medicare > payroll tax. > > Jenner said Kennedy's tax idea amounts >to ``redistributing the tax burden to >the > upper-income levels.'' > > Kennedy left the details for his >post-card tax return until next year, >but a spokesman > said it is ``roughly similar'' to the >10 percent tax plan advanced by >Gephardt, who is > eyeing a run for the presidency. > > Gephardt says that under his plan, 75 >percent of taxpayers would pay a 10 >percent > federal tax on a post card-sized >return. He would eliminate nearly all >deductions, > credits and exclusions from taxes, >except for the home mortgage interest >deduction. > > Another new voice in the debate is >economist Stephen Moore of the Cato >Institute, > who would let taxpayers choose between >the current system or a 25 percent flat >tax on > gross income. > > Another new entrant is a modified >``green tax'' proposed by Redefining >Progress. It > would be aimed at discouraging >pollution and heavy energy consumption >with new > taxes on emissions or fuels. > > The basic idea involves a tax shift -- >raising taxes on socially undesirable >pollution > while delivering tax breaks that >encourage investment and reward workers. > > ``It's not about shifting the burden >from individuals to businesses,'' said >Jeff Hamond, > fiscal policy research director at >Redefining Progress, a group of liberal >and > conservative academics who seek to >expand the tax debate. > > ``It's not only about protecting the >environment while we're trying to grow >the > economy,'' he said. ``It's about >bringing more sense to the tax code.'' > > The theory is to create a system in >which people are ``empowered to reduce >their tax > bill through their daily behavior,'' >such as getting a more fuel-efficient >car or reducing > long commutes by moving closer to work, >Hamond said. > > That's in contrast to the current >system in which people generally have to >earn less to > pay less. ``There are dozens of things >they can do to have an effect on their >tax > burden,'' Hamond said. > > This idea is gaining attention from >conservative economists such as J.D. >Foster of the > Tax Foundation, a nonpartisan research >group. ``It is something that ought to >be part > of the debate,'' he said. > > > >
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