Flat tax or Tax overhaul?

Something needs to be done about the tax system in the United States. Part of US competitiveness worldwide depends on it. A proposal is brewing and has been coined, the "mother of all tax overhauls."

House Ways and Means Committee Chairman Charles Rangel said he would introduce an overhaul of the tax code that would repeal the alternative minimum tax, reduce payments for as many as 90 million U.S. households and increase levies on hedge-fund and private-equity executives.

Rangel said his proposal would be the biggest overhaul of the U.S. tax code since 1986. He said the changes would cost between $75 billion and $100 billion over 10 years, in addition to the $800 billion required to repeal the minimum tax. The legislation, he said, would result in a ``real simplified, fairer system.''

We'll see what happens. The passage looks bleak.

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