Dear Editors:
I think the letter from Tom Kiley regarding 'fairness' in taxes deserves a response. I certainly agree that claiming 'fairness' requires consideration of several issues.
1. Why should the cost basis for capital gains be indexed for inflation and not wages?
2. Double taxation. If I pay someone to fix my roof, s/he has to pay tax on what I pay even though those funds I
provide have already been taxed. Why should double taxation of corporations be treated differently, particularly, since corporations are now to be considered as persons?
3. Corporations' taxes aren't unusually high as fewer than half of US corporations pay corporate taxes. Also the actual tax rate paid by US corporations is among the lowest of industrialized nations.
4. Why should someone who rents his/her body for physical work and in some cases at considerable risk pay a different tax rate for their 'rental' income than someone who provides (rents) capital to a corporation pays on their rental income (dividends)?
I also hope that our next president will exert leadership to realize the goals of a tax code more fair, simpler, and effective at raising revenue.
I suggest the following as a start toward fairness and believe that most of the 99% would accept them.
1. Tax all income at the same rate regardless of source.
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2. Eliminate tax benefits for second homes in every case.
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3. Pass the Buffett Rule
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4. Tax all Wall Street financial transactions at a rate that will recover, over the next six years, the bailout funds provided financial institutions.
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5. Have a corporate alternative minimum tax that would ensure that all corporations with a profit pay at least some tax.
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I realize that these steps wouldn't completely solve the debt or deficit problem but they would at least be a start in that direction.
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Thank you.
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Sincerely,