Rahm Emanuel came up with some weird proposal called the "middle-class flat tax" which they try to explain here. I replied in the comments under "grabowcp", although it isn't up as of yet.
Update: This strikes me as a much better plan, although still not perfect. Frankly I would be fine with a revenue-neutral or even revenue-positive tax plan as long as it moves us to a flat tax. Not only would moving towards a flat tax sharply reduce the costs of compliance with the tax code but more importantly would repeal all of the loopholes and special tax breaks that are at the heart of much of the lobbying here in DC and serve as an economic distortion.
I think that Republicans would be well advised to stop talking so much about tax cuts and instead focus more on tax reform. A lot of people don't think that we are particularly overtaxed, and tax cuts are seen by many as irresponsible in a time of deficit spending. I think many people, however, need little convincing of the need for tax reform and a clean up of our byzantine tax code.
Update: This strikes me as a much better plan, although still not perfect. Frankly I would be fine with a revenue-neutral or even revenue-positive tax plan as long as it moves us to a flat tax. Not only would moving towards a flat tax sharply reduce the costs of compliance with the tax code but more importantly would repeal all of the loopholes and special tax breaks that are at the heart of much of the lobbying here in DC and serve as an economic distortion.
I think that Republicans would be well advised to stop talking so much about tax cuts and instead focus more on tax reform. A lot of people don't think that we are particularly overtaxed, and tax cuts are seen by many as irresponsible in a time of deficit spending. I think many people, however, need little convincing of the need for tax reform and a clean up of our byzantine tax code.
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Emanuel's post can be summarized as "From each according to their ability; to each according to their needs." Although he does amend it slightly: according to him it is not using our ability that brings success, it's just that some of us are "blessed".
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