Time to cut the top tax rate?

Did you see the news about the new tax reform proposals?

Two different proposals are being brought forward by a "blue ribbon panel" that was launched in January, by our reform-minded president. I suspect if you liked his social security reform, you'll love his idea of tax reform.

One proposal drops the top tax rate from 35% to 33%, while the other goes to 30%. Not hard to take if you are in the top tax bracket -- and for those folks in the top 5% of the income distribution, it is simply marvelous.

Those who make a lot of money on dividends, capital gains and interest will love the 15% tax rate one of the plans will deliver (really sweet for those in the top tier of wealth and income).

For those of us closer to the bottom tier (rhymes with tear -- but please don't cry), you will still be paying your sales tax, gas tax, real estate tax, payroll tax and state income tax -- taxes that may add up to 25% of your income to begin with -- but now you won't be able to deduct them.

``We're going to eliminate almost every deduction presently in the tax code,'' the panel's chairman, former Florida Republican Sen. Connie Mack, said in an interview...

``None of us on the commission are running again,'' former Louisiana Democratic Sen. John Breaux said in an interview on CNBC Television.

I guess we can be thankful for that, anyway. Although people who won't be running again can still screw up the country. Just ask George.

| +Save/Share | |