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Renters would have fewer deductions, he said.
In a nutshell, the fewer deductions and other "tax expenditures" we have, the lower the rates can be.
It allows fewer deductions than the normal income tax (mortgage interest, donations to charity and a few other things).
The plan would give Americans the option of determining their taxes based on an alternate system that has one tax rate and fewer deductions.
Much of the credit for the 1986 bill went to Senator Bill Bradley, the New Jersey Democrat who had pushed for lower rates and fewer deductions.
The model for this approach is the bipartisan overhaul of the tax code in 1986, which exchanged lower rates for fewer deductions and loopholes.
Similar(42)
And again, his plan therefore involves 9 percent income taxes with few deductions, a de facto 9 percent levy on wages, and a 9 percent sales tax.
By radically simplifying the tax code to allow only a few deductions, the Democrats would generate new revenue and remove the loopholes that allow special interests to win favorable treatment.
At the moment many Americans have to complete their tax forms twice: once under the standard system, with its myriad deductions, credits and sundry other loopholes, and again under an "alternative minimum tax" (AMT) system which offers lower rates but very few deductions.
He favors a flat tax that would allow few deductions besides home mortgage interest and state and local taxes, and he would get rid of the capital gains tax, the so-called death tax on estates and the tax on Social Security benefits.
French taxpayers incur no capital gains taxes on the sale of a primary residence, she added, but if it's a second home, capital gains amount to 27percentt on the difference between the purchase price and the sale price, with very few deductions allowed.
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