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|Subject: Re: Is your 401(k) Inadequate For Retirement||Date: 8/3/2008 2:35 AM|
|Author: intercst||Number: 13780 of 19483|
I sure wish we could all just pay the same tax rate on every dollar earned or unearned from 0 to a gazillion. It would make things a lot simpler.
A lot of productivity is wasted structuring income to be tax-advantaged like dividends and capital gains instead of interest because it's taxed at a lower rate.
If we could just tax everything at a single, low rate.
Don't forget that about 90% of the tax code is devoted to defining exactly what is, and is not, taxable income. Only about 10% of the code is devoted to actually calculating your taxes. "One low tax rate" isn't going to simplify things very much.
Now if you wanted to eliminate all the exemptions and deductions for corporations and the wealthy, then we'd start seeing some simplification -- but I'm not holding my breath.
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