But what if you sell that house, car, stock portfolio, etc. the day after you inherit it? Should there then be zero gain? That's pretty special treatment you're asking for.
As for charity, under your plan, nothing would be no charitable deductions from other income, so again, you're now adding another special class.
You're also saying that tariffs and other excise taxes shouldn't be considered a special class, in spite of the fact that the government can pick and choose what to tax. But that's fine. I gather you'd support a luxury tax then. How about homes with over 3,000 sq/ft and boats greater than 26' and cars that get less than 25 mpg?
I specifically addressed that... if you inherit something and you decide you do not want it, and you sell it for whatever... THEN it is income...
Just because you get no charitable deductions does not mean people will not donate to charity.. and when you donate something, you are not deriving income from it, hence you are not taxed for it... if you wish to discuss taxing charitable organizations, that is a whole other can of worms and a debate on whether they are doing it for 'gain' or whatever...
I addressed the excise tax in terms of how it is applied... I do not believe in a national sales tax... but you see what I mean (I hope) that an excise tax on Gas (for example) is taxed for every unit at the same rate without subjective criteria on whether the customer earns X amount or X+60 amount
I support no luxury tax... for it creates criteria based on a value and treats things of the same type differently... if you sales tax a rowboat that costs $300 at 5%, you best sales tax the yacht that costs $10MIL at the same 5%
I hate to do this, but have to give you kudos on a consistent position. I disagree with you, but at least you're not picking and choosing who gets special treatment.
The only place where I would differ is a fundamental belief that some progressiveness in
our income tax system is fair, based on how some are able to leverage public services for greater wealth. But even there, my argument becomes somewhat weaker if things like capital gains are treated like ordinary income.
Practically, it's never going to happen. There's too much vested interest in keeping the status quo, and it's not being driven by the lowest quintile. So from a pragmatic perspective, the only reasonable solution that has a prayer, is to raise taxes on those in the upper brackets. They'll keep their capital gains, dividend, and interest breaks. And since that's going to be the case, things like mortgage interest deductions and employer payed health insurance, ought to have some similar breaks. Otherwise, what we're going to see, is essentially what the OP article speaks of, i.e. more tax cuts for the top brackets, on the backs of the middle class.