{"id":4044,"date":"2012-04-11T03:50:58","date_gmt":"2012-04-11T07:50:58","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=4044"},"modified":"2012-04-11T03:50:58","modified_gmt":"2012-04-11T07:50:58","slug":"bruce-bartlett-how-to-really-simplify-the-tax-code-nytimes-com","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2012\/04\/11\/bruce-bartlett-how-to-really-simplify-the-tax-code-nytimes-com\/","title":{"rendered":"Bruce Bartlett: How to Really Simplify the Tax Code &#8211; NYTimes.com"},"content":{"rendered":"<p>BRUCE BARTLETT: Prof. Michael Graetz of Columbia Law School has proposed what I believe is a MacArthur-like solution to tax reform. He would abolish the income tax for the vast bulk of Americans and replace the revenue with a 12.5 percent value-added tax. People would pay their taxes when they buy things and wouldn\u2019t need to worry about keeping records or filing tax returns at all.<\/p>\n<p>The brilliance of the Graetz plan is that no tax expenditures need to be repealed. He would simply give every family a tax exemption of $100,000, which would eliminate the income tax for 90 percent of those now filing returns.<\/p>\n<p>via <a href=\"http:\/\/economix.blogs.nytimes.com\/2012\/04\/10\/how-to-really-simplify-the-tax-code\/?partner=rss&amp;emc=rss\">Bruce Bartlett: How to Really Simplify the Tax Code &#8211; NYTimes.com<\/a>.<\/p>\n<p>Comment:~ Why not abolish the income tax entirely? Retaining a partial system would leave taxpayers vulnerable to bracket creep as inflation pushes them into higher tax brackets. Income tax is a highly inefficient tax to administer and collect compared to broad-based taxes such as VAT. The argument that VAT increases the burden on the poor can be overcome by a subsidy (not an exemption) on basic foodstuffs and other essentials. Switching to a VAT-based system also makes the issues of income-splitting and use of tax havens redundant. One of the few negatives I can think of is that replacing income tax with a VAT may encourage offshore consumption &#8212; taking an overseas holiday for example rather than holidaying locally &#8212; in order to avoid consumption tax. I would welcome suggestions as to how this could be countered, as well as any further negatives you may think of.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>BRUCE BARTLETT: Prof. Michael Graetz of Columbia Law School has proposed what I believe is a MacArthur-like solution to tax reform. He would abolish the income tax for the vast bulk of Americans and replace the revenue with a 12.5 percent value-added tax. People would pay their taxes when they buy things and wouldn\u2019t need &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2012\/04\/11\/bruce-bartlett-how-to-really-simplify-the-tax-code-nytimes-com\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Bruce Bartlett: How to Really Simplify the Tax Code &#8211; NYTimes.com&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[50,34],"tags":[1800,2785,3589],"class_list":["post-4044","post","type-post","status-publish","format-standard","hentry","category-financial-planning","category-us-canada-countries-regions","tag-income-tax","tag-prof-michael-graetz","tag-value-added-tax"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Bruce Bartlett: How to Really Simplify the Tax Code - NYTimes.com - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bruce Bartlett: How to Really Simplify the Tax Code - NYTimes.com - the patient investor\" \/>\n<meta property=\"og:description\" content=\"BRUCE BARTLETT: Prof. Michael Graetz of Columbia Law School has proposed what I believe is a MacArthur-like solution to tax reform. He would abolish the income tax for the vast bulk of Americans and replace the revenue with a 12.5 percent value-added tax. 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The top individual tax rate is 35 percent. Loopholes and other deductions help lower that rate so that most Americans\u2026","rel":"","context":"In &quot;Financial Planning&quot;","block_context":{"text":"Financial Planning","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/other\/financial-planning\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5030,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/08\/01\/poles-apart-nytimes-com\/","url_meta":{"origin":4044,"position":1},"title":"Poles Apart &#8211; NYTimes.com","author":"Colin Twiggs","date":"August 1, 2012","format":false,"excerpt":"I enjoyed this comment on the NYtimes website by A Man from Poland in response to Paul Krugman's criticism of Mitt Romney lavishing praise on the Polish economy. Especially because Krugman concludes: \"Doesn\u2019t anyone tell Romney to do his homework?\" Mr Krugman, I see that you don't know too much\u2026","rel":"","context":"In &quot;UK &amp; Europe&quot;","block_context":{"text":"UK &amp; Europe","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/uk-europe-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5432,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/09\/12\/raising-taxes-73-of-nothing-is-nothing\/","url_meta":{"origin":4044,"position":2},"title":"Raising taxes: 73% of nothing is nothing","author":"Colin Twiggs","date":"September 12, 2012","format":false,"excerpt":"President Francois Hollande recently increased the top income tax rate in France to 75 percent -- for incomes in excess of \u20ac1 million. This is part of a wider trend with President Obama targeting the wealthy in his election campaign, promising to raise taxes on incomes in excess of $1\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3229,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/01\/04\/the-significance-of-tax-components-within-your-smsf-warrick-hanley\/","url_meta":{"origin":4044,"position":3},"title":"The significance of tax components within your SMSF &#8211; Warrick Hanley","author":"ColinTwiggs","date":"January 4, 2012","format":false,"excerpt":"Have you ever taken note of the tax components within your SMSF? Behind the balance of your member account are two main components that make up your superannuation savings \u2013 these are the Taxable Component and the Exempt (or Tax Free) Component. The Taxable bucket consists of contributions made to\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10271,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/07\/11\/growth-or-income\/","url_meta":{"origin":4044,"position":4},"title":"Growth or income?","author":"ColinTwiggs","date":"July 11, 2014","format":false,"excerpt":"Most investors face a decision as to how much of their portfolio to allocate to growth investments and how much to income investments. The mind-set of many income investors is that they cannot afford the volatility of growth investments. The following example illustrates how income investors can use growth investments\u2026","rel":"","context":"In &quot;Financial Planning&quot;","block_context":{"text":"Financial Planning","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/other\/financial-planning\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13851,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/07\/12\/growth-or-income-2\/","url_meta":{"origin":4044,"position":5},"title":"Growth or Income?","author":"ColinTwiggs","date":"July 12, 2014","format":false,"excerpt":"Most investors face a decision as to how much of their portfolio to allocate to growth investments and how much to income investments. The mind-set of many income investors is that they cannot afford the volatility of growth investments. The following example illustrates how income investors can use growth investments\u2026","rel":"","context":"In &quot;Momentum Investing&quot;","block_context":{"text":"Momentum Investing","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/investing\/momentum-investing-2\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/4044","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=4044"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/4044\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=4044"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=4044"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=4044"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}