Question

Raising taxes on wealthy Americans won’t be enough to deal with the nation’s budget deficit. Some would argue that we also need to raise taxes on everyone, or lower taxes for everyone to expand the number of individuals in the tax base. At the very least, a broader conversation about this country’s tax policy is necessary, and that means asking a simple question: What should tax reform do?

Answer 1

What should tax reform do is a topic which is widely discussed among groups of intellectuals and there can not be a single straight answer to the problem which is a result of years of over spending and neglected tax collections. Government is run by the fuel in form of taxes and in case of national budget deficit at all time high it requires that supply of fuel increases so as the vehicle of world biggest economy runs smoothly. To do so, the two way approach can be followed where government can increase tax on capital gain on not only property but also stock transactions along with increasing tax on super rich by filling the loop holes in estate tax laws as wells as income tax. Increasing tax burden on lower income group may not solve the problem as their proportion in total tax collection is very less comparatively.