Coyote Blog’s tax proposal, which will of course go nowhere:
1. Eliminate all deductions in the individual income tax code.
2. Eliminate the corporate income tax.
3. Tax capital gains and dividends as regular income.
4. Eliminate the death tax as well as the write-up of asset values at death.
There is also a 4a: until the program is properly restructured, the Medicare tax will have to rise a bit.
Some exposition on 3:
I know there is all sorts of literature that supposedly promotes a lower capital gains tax as an economic positive. Frankly, I don’t trust it any more than any other literature genned up to promote special tax breaks to any group because that group is supposedly economically more important. In my mind, a lower capital gains tax rate (which means a higher regular income tax rate) is just another way of government expressing an artificial preference for one economic activity over another.
In anything resembling a free society, we shouldn’t have to give two-thirds of a damn what the government claims to “prefer.” Not that they care to remember such minor details, but they’re supposed to be working for us, not the other way around. Washington, D.C. should look as barren as pre-Bakken North Dakota is supposed to have been.