The Huffington Post, Feb. 7, 2012
The Purple Tax Plan
by Lawrence J. Kotlikoff
The esteemed Professor Kotlikoff has released his long awaited tax plan
as part of his presidential campaign. He opines:
... I call my plans the Purple Plans, because they are designed to
appeal to red Republicans and blue Democrats, and red plus blue makes
purple.
... Given our nation's enormous fiscal and economic challenges, we can no
longer afford a dysfunctional tax system. Most politicians, whether from red
or blue states, agree.
... The Purple Tax Plan is a simple, transparent,
efficient, and progressive tax system. It will help the economy save, grow,
produce jobs, and deliver higher wages.
... The Purple Tax Plan replaces the federal personal
and corporate income taxes as well as the estate and gift tax with a
broad-based, low-rate, progressive consumption tax and a low-rate,
progressive inheritance tax. It also makes the highly regressive FICA
payroll tax highly progressive and runs the highly progressive Earned Income
Tax Credit and Child Tax Credits through the FICA tax. The plan eliminates
the need for households and business to file annual income tax returns.
... We certainly need more revenue. Based on the Congressional Budget
Office's long-term forecast of June 22, 2011, our nation's fiscal gap - the
difference measured in the present (the present value) of all future
projected spending, including servicing the existing debt, and all future
taxes is $211 trillion!
2-4-8 Response
I greatly enjoyed reading about the Purple Tax Plan. It is exactly the
plan I first thought of before I thought of the 2-4-8 Tax Blend plan.
Unfortunately, I had not considered the genius of the "Purple Tax Plan"
name. Is it for sale?
Eugene Patrick Devany, JD, MPA
www.TaxNetWealth.com
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