With income tax rates set to go up on January 1, 2011, Congress is
hotly debating what to do next. Most economists though agree: Keep them
where they are.
One option, to let the tax cuts passed during the Bush administration expire for only the richest 3% of taxpayers while renewing them for everyone else, is popular among Democrats and the choice of the Obama administration.
I personally believe that the current tax system is frankly a complicated failure that hinders the nation's growth while allowing the politically well-connected to manipulate the system to get special breaks that are not available to average workers and businesses. As a matter of fact, we at Blackhawk strongly propose shifting to a simple fair tax or flat tax.
In a competitive global economy, jobs and capital flow to jurisdictions with better tax law. Traditionally, this process of "tax competition" has benefited the United States, but there is growing evidence that America is falling behind. Nations around the world are lowering tax rates and reforming their tax systems. Indeed, nine countries that were part of the former Soviet Bloc have adopted versions of the flat tax. These pro-growth reforms are yielding impressive results and should be a road map for U.S. policymakers - Financial planning
One option, to let the tax cuts passed during the Bush administration expire for only the richest 3% of taxpayers while renewing them for everyone else, is popular among Democrats and the choice of the Obama administration.
I personally believe that the current tax system is frankly a complicated failure that hinders the nation's growth while allowing the politically well-connected to manipulate the system to get special breaks that are not available to average workers and businesses. As a matter of fact, we at Blackhawk strongly propose shifting to a simple fair tax or flat tax.
In a competitive global economy, jobs and capital flow to jurisdictions with better tax law. Traditionally, this process of "tax competition" has benefited the United States, but there is growing evidence that America is falling behind. Nations around the world are lowering tax rates and reforming their tax systems. Indeed, nine countries that were part of the former Soviet Bloc have adopted versions of the flat tax. These pro-growth reforms are yielding impressive results and should be a road map for U.S. policymakers - Financial planning
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