A KINDER, GENTLER TAX SYSTEM

John Podesta presents the Center for American Progress approach to tax reform.

The Center for American Progress proposes a comprehensive tax reform plan that rewards hard work and promotes shared prosperity.  We propose a plan that would tax each kind of income according to the same rate schedule, whether the income is derived from wages, salaries, capital gains, or dividends.  Our plan shifts the share of taxes away from the regressive payroll tax and onto a restructured income tax.  It reduces complexity by establishing a simpler, more progressive three-rate structure and it eliminates the Alternative Minimum Tax, in addition to closing corporate and individual loopholes.  Our plan enhances opportunity by reducing the deficit to strengthen the economy and it promotes retirement savings for millions of Americans who currently receive no savings incentives through the tax code.  Furthermore, our plan improves the Earned Income Tax Credit and expands the number of families eligible to receive the federal child tax credit.  Ultimately, the Center for American Progress's reform plan increases the take-home pay of low- and middle-income families and generates the funds our country needs to meet its vital domestic and national security commitments.