This might be a great first step toward fiscal sanity. Will both sides agree to it? TPC Tax Topics | Bowles-Simpson Plan Summary The Zero Plan in the Bowles-Simpson Chairmen's Mark would: Eliminate all tax expendituresfor both income and payroll taxesexcept for the child credit, the earned income tax credit, foreign tax credits, a few less common preferences (retain reduced preferences for mortgage interest, employer-sponsered health insurance and reitrement savings in the third variant listed above). Eliminate the alternative minimum tax (AMT). Eliminate the phaseout of personal exemptions and the limitation of itemized deductions. Replace the current six-bracket individual tax rate schedule with a three-bracket schedule with rates of 9, 15, and 24 percent (12, 20, and 27 percent in the third variant listed above). Tax capital gains and dividends as ordinary income. Index tax parameters using the chained Consumer Price Index. Increase the Social Security wage base by 2 percent per year more than the growth in the average wage (making the FICA cap $140,100 in 2015). Phase in an increase in the federal excise tax on gasoline of 15 cents per gallon (13.5 cents per gallon on average in 2015). Eliminate corporate tax expenditures and reduce the corporate tax rate to 26 percent (27 percent in the third variant listed above).