Tax reform is the process of changing the way taxes are collected or managed by the government.
Tax reformers have different goals. Some seek to reduce the level of taxation of all people by the government. Some seek to make the tax system more progressive or less progressive. Others seek to simplify the tax system and make the system more understandable, or more accountable. Numerous organizations have been set up to reform tax systems worldwide, often with the intent to reform income taxes or value added taxes into something considered more economically liberal. Others propose tax systems that attempt to deal with externalities. Georgism claims that various forms of land tax can both deal with externalities and improve productivity.
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United States
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There have been many movements in the United States to reform the collection and management of taxes.
During the late 19th century American economist, Henry George, started a global movement for tax reform whose aim was the abolition of all forms of taxation other than the Single Tax on land value. The effects of the movement on taxation policy, although diminished can still be seen in many parts of the world including Australia, New Zealand, Hong Kong, Taiwan and Singapore. Efforts to promote this form of tax reform in the United States continue under the aegis of organizations such as The Henry George Foundation of America.
During the Bush administration, the President's Advisory Panel for Federal Tax Reform recommended the removal of the Alternative Minimum Tax. Several organizations are working for tax reform in the United States including Americans for Tax Reform, Americans For Fair Taxation and KillYourTaxes.com. Various proposals have been put forth for tax simplification in the United States, including the FairTax and various flat tax plans and bipartisan tax reform proposals.[1]
In 2010, Fareed Zakaria proposed what he described as a "grand bargain" with tax reform for economic adversaries Paul Krugman and Niall Ferguson; an attempt to bridge their political divide with the creation of a simple and indirect Federal Sales Tax.[2] Representative Chaka Fattah of Pennsylvania introduced a bill, H.R. 4646,[3] called the Debt Free America Act that would introduce a 1% financial transaction tax and eliminate federal income tax. He has introduced bills calling for similar tax reform since 2004, but the bills have never made it out of committee.[4]
See also
- Americans For Fair Taxation
- Americans for Tax Reform
- Land Value Tax
- FairTax
- Flat tax
- Freedomworks
- Tax choice
References
External links
- Americans for Responsible Taxes
- Americans For Fair Taxation
- Americans for Tax Reform
- The Chartered Institute of Taxation - U.K.
- Citizens for an Alternative Tax System
- Citizens for Tax Justice
- Henry George Foundation of America
- Kill Your Taxes
- Libertarian Party - U.S.
- Low Incomes Tax Reform Group - U.K.
- National Taxpayers Union
- Tax Foundation
- Tax Reform Australia - Australia