Sen. Ron Wyden (D., Ore)
Yesterday, Sens. Judd Gregg (R., N.H.) and Ron Wyden (D., Ore.) introduced a proposal aimed to simplify the U.S. Tax Code. Here are is a list of a few proposals in the simplification plan:
1. Lower the number of marginal income tax rates to three: 15%, 25% and 35%
2. Eliminate the alternative minimum tax
3. Create a single corporate income tax rate of 24%
4. Allow small business with receipts up to $1 Million to expense all of its equipment and inventory costs
Proponents of the plan believe that the plan will also promote the use of the standard deduction by more taxpayers. Further, the tax on capital gains would receive a makeover by exempting the first 35% of capital gains income from tax.