Treasury Official: Tax Overhaul May Not Be Drastic

[Rose Siding]

..."There is a lot of work left to do, a lot of decisions yet to be made. We are early in the process yet," Greg Jenner, acting assistant secretary for tax policy at the Treasury Department, told a group of business leaders.

Jenner said White House calls for a simpler tax code that encourages savings do not necessarily mean the U.S. income tax will be jettisoned and replaced by a consumption or sales tax.

"Many people see the words 'fundamental tax reform' as necessarily including that we are going to move from the current hybrid system to a different type of taxes completely. That is not necessarily the case at all," he told a tax policy conference hosted by PricewaterhouseCoopers.
......
"The tax code is perceived as unfair in part because it is so complicated," he said, noting that many Americans feel they are being taken advantage of by those who manipulate the code to reduce their tax bills.

"A growing and alarming number of taxpayers consider themselves to be either chumps or cheats," Jenner said. "That will eventually lead to a complete erosion of our tax system if we don't do something to stop it."

Jenner also identified problem areas in the current tax code that he said caused economic distortions.

"We overtax savings. We double-tax corporate profits. We have unequal treatment of debt and equity," he said. "All of these things lead to the misallocation of resources in the economy."

http://www.reuters.com/newsArticle.jhtml?type=politicsNews&storyID=7020848&src=rss/ElectionCoverage

[Sandpiper]

1. The Tax Code is perceived as unfair

By rich people who think it unfair that they should have to pay them.

[David__77]

2. "double tax," the big lie

All income is "double taxed." Every dollar spent and subject to consumption tax is "double taxed." Money doesn't come into being mysteriously. It's constantly cycling through the economy and transactions associated with it are subject to taxes. Why is "investment" somehow more sacred than consumption. One needs to consume to live. Consumption drives the economy.

There's no automatic valor in savings. What this is really about it penalizing consumption by working people. The aim is to force workers to save in order to shore up the big corporations and Wall Street. That's the aim with privatizing public pensions. The housing market will collapse and then the economy will be up shit creek if they cannot think of a new balloon to inflate.

The sales tax in inherently reactionary. It should be opposed in principle. Taxation of profit is a good think, properly applied. We should use capitalism and entrepreneurs to serve the needs of the people. The state, representing to people, must not allow itself to be used by the private capitalist. This is not an argument against capitalism, per se. It is, however, an argument that profit must be strictly regulated, and the distribution of national product must be as wide as possible, without unduly sacrificing the level of total product in doing so.

[Bush_Eats_Beef]

3. As long as they don't go for the "National Sales Tax," let 'em take a shot

...because everyone EXCEPT Bush's "base" of "one percenters" will get a thorough, ROYAL screwing if John Linder and Dennis Hastert get their way.

GOP House & Senate met leaders met in Norfolk, VA. last week for two days. One of the things for discussion on the agenda WAS the "National Sales Tax." Saying that a tax overhaul does "not necessarily mean the U.S. income tax will be jettisoned and replaced by a consumption or sales tax" tells me SQUAT. It might happen, it might not. Let me know when you decide.

When I see a headline like "Treasury Official: Tax Overhaul May Not Be Drastic," I DO NOT feel "reassured."

When I see the headline "THERE WILL NOT BE A NATIONAL SALES TAX," that will be the time to consider myself...and the MILLIONS like me..."out of the woods."

:grr:

[Sideways]

4. Jenner Needs A Clue Phone No Make That A Clue Bullhorn

This sums up their protect the rich and fuck the rest ""We overtax savings. We double-tax corporate profits. We have unequal treatment of debt and equity," he said. "All of these things lead to the misallocation of resources in the economy." :wtf:

Total and complete horse droppings. And misallocation is NOT a word.

Fucking fascist every last one of them.

[mcscajun]

5. Double taxation...kiss my taxpaying butt.

We have unequal treatment of Income...period. The income most folks earn by working is deemed far more taxable than income that is NOT earned by working; i.e., capital investment...money making money.

The taxation of wealthy people and their NON-wage income is (GASP) 'double taxation'?

Hogwash.