House GOP Now Have a Tax Code Reform Plan

[AggregateDemand]

The GOP wants to drop the top tax rate down to 25% and close the budget hole. Joke party.

You don't know much about the tax code, do you?

The rate reduction would obviously be achieved by eliminating deductions, like mortgage interest deduction (corporate welfare). Furthermore, FICA tax is regressive, and many reformers have wanted to uncap the FICA system to stop bracket creep abuse of the middle class by federal administrators. This reform also appears to include a Buffet rule of sorts.

[AggregateDemand]

This is the same reform as 1986. Democrats may go for most of this with some modifications like they did in 1986 because it eliminates junk loopholes.

deductions are just corporate welfare anyway. The more deductions, the more forms to file. The more forms to file, the more people look to Turbo Tax, H&R Block, etc. Business capture a sizable chunk of the tax savings, and the push the boundaries of proper tax-preparation which reduces government revenues further.

Inefficiency doesn't help taxpayers, and deduction-based social-engineering is never as effective as promised.