posted 05-10-2001 09:40 PM               

As a liberal Democrat, "certain people" probably aren't too happy to listen me on this day or for that matter, whenever a discussion about taxes crops up. You see, many people don't like it when you point out things like the government subsidization of home ownership or other such social spending classes. To point it out in that context would be to imply that they were not "entitled" to them as "hard working Americans."

Look, I'm not saying these programs are wrong, I'm just saying that its hypocritical to say that taxes going to welfare programs are wrong while the tax dollars that subsidize mortgages and home equity loans are not. (I'm not even going to talk about tax dollars going to "corporate welfare" because my husband is chomping at the bit to be the one who gets that ball rolling. Don't say I never gave ya anything, Hon.)

For goodness sake, you want to talk about fairness and redistribution? Tax dollars that go to feed people vs. the tax subsidized home equity loans that many middle class people use to purchase new cars or take vacations (at the urging of banks)? Give me a break.

With regards to tax reform points in the article, those are some very interesting proposals.

Point by point:

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1) Relieve between 40 million and 50 million households of the need to file tax returns.

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Certainly possible, and sensible - it probably costs more to process those returns than the government nets in revenue.

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2) Cut the top rate from 39.6% to 30% and tax capital gains as ordinary income. Lowering the top rate would raise economic activity and reduce tax avoidance.

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Tax capital gains as ordinary income? Where was this one during the big boom a couple years ago?

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3) Raise the standard deduction significantly.

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Can we get a "hell, yeah?" I think the only people who would hate this one would be accountants who charge by the hour.

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4) Confine the alternative minimum tax to operators of real tax shelters by drastically raising the exemption and indexing it for inflation.

5) Remove the restrictions on itemized deductions and personal exemptions that affect high-income taxpayers.

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My income is not large enough nor are my finances complex enough for me to have experience with these changes so in a word, huh?

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6) Make the tax credits for children, child care, education and adoption completely refundable

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Double "Hell, yeah"

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7) Consolidate and simplify all IRAs and related plans into one account with simple and clear contribution and withdrawal rules.

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I would do my end-zone dance for this one, perhaps after Congress finishes deciding whether we can make larger contributions, they'll tackle this.

[Edited to add in the proposals in question for easy reference.]