This is an archived article that was published on sltrib.com in 2017, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
President Trump, regarding income tax reform, here is an alternative to making our system more complex and giving more tax breaks to the rich.
Throw out the current IRS tax code. Replace it with a simple graduated tax, where all income is taxed as follows: The first $30,000 of income is taxed at 2 percent, the next $30,001 to $75,000 is taxed at 5 percent, $75,001 to $125,000 is taxed at 10 percent, with similar bracket increases to 40 percent for incomes of $1 million and more.
Yes, lawyers, accountants and rich people who use the current system to their advantage would scream. Let them. Many would not want to see the loss of the mortgage interest deduction and charitable interest deduction but, with low rates at lower income levels, this could be largely offset. For the very poor, "special adjustments" could be made.
If additional income is needed to fund our government and balance our budget, consider a gradually increasing carbon tax. (Increasing 10 cents per gallon of gasoline, per quarter, for 10 years). This would encourage energy conservation without government intervention. This would create many jobs as we change to more efficient vehicles and buildings.
Mark Rothacher
Millcreek