Jon
The CPA
The "Right Track" for taxes is a flat rate tax with no exceptions. You still have the inequality of it being a percentage of income and investments, but then everyone pays their fair share.
The truely FAIR tax would be a flat rate for everyone regardless of what they make. Then everyone pays the same. Think of it. if you made the flat rate a thousand dollars, but everyone who has a job or gained wealth from investments paid it. How many people earn an income in the US or at least gain wealth from investments? 150m? 250m? That's suddenly an income tax of 1.5 to 2.5 TRILLION.
Of course there would be no more refunds, and withholding gets really simple 1000/52 weeks.... you get the point. Yes the poor get hit a little harder, but they need work, and now the rich have LOTS of money to invest. No more panicking around tax time, because like union dues, it's already been taken from your check. If someone is out of work and no income... no tax! Crazy!
Of course the income tax code is reduced to like 1 page and you put out thousands of temporary workers around tax season as well as full time personal accountants. But those are acceptable losses. They'll find new work elsewhere.
Even if you did a 10% flat tax on all income (including investments) and nothing else, the rich would be gonzo to pay it, and the poor would no longer be draining the public treasury by gaining more money back than they put in. April 15th would no longer be 'second christmas'. In the process we'd STILL be collecting more money than the current system which packs the taxes on the middle and upper classes like a fat cheerleader at the top of the pyramid.
Fairness in taxation... utter bullshit under progressive models. Redistribution is just evil.
The flat tax is not fair at all, actually. Because there are other taxes, like sales taxes, those with the capacity to spend (ie., the wealthy) still have to pay more in taxes. However, those without the capacity to spend still have to pay taxes on the goods they need to survive, which means they are still paying a larger portion of their income on taxes for goods.
There will never be a "fair" tax system. Someone is always going to get favored.