Citizens for Tax Justice has outlined why an increase in federal revenue collection is appropriate and necessary, and suggested several tax policies to aid that goal.   These changes would mostly affect high-income persons, businesses, and multinational corporations.  Some of the larger revenue-increasing proposed changes include:

  • Taxing capital gains and stock dividends at ordinary rates,
  • Limiting certain deductions and exclusions of the super-rich to 28% of the amount deducted or excluded,
  • Disallowing accelerated depreciation,
  • Moving from a deferral to a dividend-exemption system, and
  • Restricting earnings-stripping interest deductions.

See “Addressing the Need for More Federal Revenue,” CTJ.org (July 8, 2014)

With thanks to “CTJ Describes Tax Policy Options to Raise Federal Revenue,” 2014 TNT 131-38, Tax Analysts (July 9, 2014

Posted by David Staggs, Associate Editor, Wealth Strategies Journal