| Mr Khan said: The tax cuts don't go one way or another. What would fix the revenue hole is a capital gains hike |
I don't think that'd do it as much as you think.
IMO, the best way to fix it would be an across the board flat tax on capital gains + income, ect.... 20 or 23%, with a minimum threshold of $30,000. No loopholes, no tax credits. You either pay or you don't. Our revenue problem isn't based on what the rate is, because our collections as a percentage of GDP has been the same regardless of the marginal rate or capital gains rate. Our problem lies with the Laffer Curve, and who is actually paying. The rich in many cases are not paying their tax rate due to loopholes - and of course, the poor are getting monies they didn't pay in because of credits. Both need to be eliminated. There should be no incentive to stay poor, or game the system.
(of course, this assumes that we stay on our current path of near-insane federal spending. I would also argue we must cut government spending by 50-60% thereby allowing us to lower the tax rate from 20-23 to 15-17 or so).
Back from the dead, I'm afraid.
