Reforming The United States Income Tax

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Reforming the United States Income Tax
Ryan Sauer
Wayland Baptist University


In January of 2005, President George W. Bush appointed a bipartisan committee to propose new income tax policies; they were referred to as the “President’s Advisory Panel on Federal Tax Reform”. The goal of the panel was to advise new options in an attempt to make filing of the United States personal income tax simpler. The made a statement about the difficulty that normal citizens have when filing their tax returns, “For millions of Americans, the annual rite of filing taxes has become a headache of burdensome record-keeping, lengthy instructions, and complicated schedules, worksheets, and forms – often requiring multiple
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One of the main points of interest for the panel was decreasing the burden on low-income households. Families and small businesses are heavily affected by the alternative minimum tax (AMT), which is secretly imposing a plethora of regulations on them that they are unaware of. The AMT was established in 1969 in order to target high-income taxpayers who were avoiding paying all of their taxes through the many loopholes. Since, the AMT has been extended to catch the middle-income families. It will “catch” 4 million people this year and over 20 million people next year trying to avoid paying some of their taxes. “Some projections suggest that by 2015, as many as 50 million taxpayers, or about 45 percent of all taxpayers who pay income tax, will be paying AMT.”(Advisory Panel, 2005) Many of the nations highest earners are not touched by the AMT while some middle classed families are required to compute their taxes twice although they have not committed any form of tax avoidance. They are also restricted from filing certain exemptions that could be used by majority of the population. “As one of our
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