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In reply to the discussion: If YOU were in charge, how would you structure the taxing systems to be fair to everyone? [View all]karynnj
(60,504 posts)Many Democrats have pointed out that our values are in our budget. The same thing can be said of our tax laws.
Some provisions were designed to favor certain decisions. One major one was that decades ago, people argued that home ownership was good both for people who did so and for the overall community. In the tax law, this resulted in being able to lower taxes by itemizing both mortgage interest and property taxes. For some, that savings made ownership more affordable than renting. A less difficult to eliminate change would be the various provisions for things like buying green products.
But, as Democratic legislators pointed out some corporations have entire pages in the tax code that benefit just them.
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So, in designing a fair system, you might have to start from where we are on somethings, phasing out things that large numbers of people would be negatively affected by.
A fair system might streamline income based payments to and from the government. There is some of that now with the Earned Income Credit and other provisions. ( Back in the1960s, there was discussion of replacing welfare with a negative income tax. )
In addition to busting the budget and giving hugh cuts to the wealthy, the 2017 tax law led to more people taking the standard deduction. You could say that that simplified preparing taxes, but it also cynically hurt people in blue states by capping SALT.
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