SENATE BILL: Income Tax Reform Act of 2014 (Failed)

[DC Al Fine]

Question for Yankee: Does this bill ban deductions for expenses incurred to earn income? The current wording seems like it screws self-employed people.

[DC Al Fine]

Question for Yankee: Does this bill ban deductions for expenses incurred to earn income? The current wording seems like it screws self-employed people.

Both this bill and the Intl Acct Standards Act have been introduced on behalf of the Administration, if you wish to pose questions to Duke, or myself.  As to your question, yes, considering the current text.

Ok thanks for the heads up.

While I understand the administration's desire for a simplified tax code, I believe that removing all deductions is violates the basic idea behind the income tax; taxing a fair share of one's income.

The current wording of the bill does not allow for accurate assessment of income. The current wording of the bill would assess the landlord or self-employed person based on the rents or revenue the collected, not their actual income.

[DC Al Fine]

At minimum, we should keep deductions for: expenses incurred to earn income, and deductions to avoid double taxation. It's fundamentally unfair to tax "income" that is ultimately spent doing one's job. Likewise it is unfair to tax income that has already been taxed.

Under the rules I outlined above, we'd keep deductions for:

• Classroom Expense
• Home Office
• IRA/li]
  
  • Investment Interest Expense
  • Investment Expense
  • Moving Expense
  • Self-Employment Tax
  
  Also does receiving alimony count as taxable income? If so, Alimony Paid should be a deduction as well.

[DC Al Fine]

Nay