Fight the Deficit Monster with Tax Reform

[guest]

Simplifying the U.S. code could lower overall income tax rates and raise more revenue, says Bloomberg BusinessWeek columnist Chris Farrell

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[richardm1964]

I think simplification of the tax structures would be a better option. The tax base would broaden and it can allow for both lowering overall income tax rates and raising more revenues. This may be easier to match federal tax revenue with federal spending obligations. A number of important tax cuts from earlier regime in the decade are scheduled to expire in 2010, including the low rates on dividend and capital gains taxes. So restructuring them would be a better option to mope up more tax revenues.