The Forum > Article Comments > The economic case for tax reform > Comments
The economic case for tax reform : Comments
By Peter Jonson, published 8/3/2006The solution to unemployment - which is worse than has been portrayed - lies in radical reform to tax and welfare.
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There is no doubt that the tax system is far too complicated and that possible deductions are extremely wide. The article rightly points out that billions could be recovered from eliminating deductions. Furthermore a simpler system would not justify such high involvement of accountants and lawyers in tax matters.
I did disagree with the 'maximum 30%' contention. There is no doubt that 48% kicks in FAR too early at $65k. However it should kick in nevertheless-say at over 250k. An ideal system would lift the tax free threshold to 10k, install 15% up to 40k, 25% up to 65k and then 35% right up to 250k. Simple numbers make for simple sollutions in this case.
I also believe a system based on the above numbers would ultimately reward the middle class for work, encourage those on benefits to work, provide incentive to top earners to stay and facilitate growth in small business (providing the company rate was fixed at 30%).