![]() ![]() ![]() We should kill it and institute a flat tax. The federal tax code is beyond redemption. Tax lawyers and Congress will have a field day defining what qualifies as production income, which would thus be subject to the lower tax rate.Ĭamp’s bill doesn’t go as far in simplifying things as the last effort in 1986, when countless tax shelters were eliminated, the number of brackets was knocked down to two, and the top rate was whacked from 50% to 28%, the lowest since the days of Calvin Coolidge. These owners would thus be taxed at the same rate as regular corporations (cut to 25% in the bill) and would not be subject to the 35% personal income tax rate. Under Camp’s plan this income would be declared “production” income, with tax rates capped at 25%. One of all too many examples: S corps and limited liability companies, whose profits are passed through to their owners as personal income. And given its complexity, this bill is ripe for mischief. Lobbyists and trade associations are already lining up to amend the proposal. But what you really need to know is that Camp’s impressive effort to simplify the tax code runs almost 1,000 pages. ![]()
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