With regard to the idea of taxing all income of
individuals and for-profit entities based on a progressive tax rate, deductions,
exemptions and credits must be addressed.
In order to reform tax law for both individuals and
for-profit entities, Congress should adopt the proposal in the prior blog,
entitled, “All Income
of Individuals & For-Profit Entities Should be Taxed at Graduated Rates.”
In a
Reform Tax Law for For-Profit Entities, I further propose that Congress should
establish a graduated schedule for for-profit entities whether it be the same
schedule as for individuals or another schedule. That graduated tax rate schedule for
for-profit entities should go into effect in three years from the date of
enactment.
In a
Reform Tax Law for For-Profit Entities, Congress should repeal effective in
three years from the date of enactment all existing deductions,
exemptions and credits.
In a
Reform Tax Law for For-Profit Entities, Congress should then enact effective in
three years from the date of enactment such deductions, exemptions
and credits as Congress determines necessary.
The new deductions, exemptions and credits in a Reform Tax Law for For-Profit
Entities should expire automatically after ten years.
Thus the voting public would have an opportunity to
see a blank slate and be able to evaluate the deductions, exemptions and
credits that Congress passes.
After enacting a Reform
Tax Law for For-Profit Entities, Congress should then enact a reform tax law
for individuals in the same manner.
