Are we glad that tax season is over for 2012?? Â Well, really "tax season" is never over! Â Tax fairness seems to already be dominant themes in a year with a presidential election in the fall. And, "Fair" is in the eye of the beholder!! Â Many different tax proposals have been put forth by various committees and government representatives, but most believe that these proposals stand little chance of being enacted into tax law. Following is a brief overview of several different tax proposals:
Bowles-Simpson Plan: The National Commission on Fiscal Responsibility and Reform released a report identifying ways to lower tax rates and eliminate some tax deductions. Their plan (often referred to as the Bowles-Simpson Plan) failed to get enough votes on December 3, 2011.
The Ryan Plan: The "Path to Prosperity: A Blueprint for American Renewal" is a budget proposal by Representative Paul Ryan, Chairman of the House Budget Committee. The Ryan plan lowers tax rates, eliminates some deductions, and reforms Medicare. It passed the House on April 15, 2012, but has little chance of being passed by the Senate.
The Buffet Rule: This plan (Senate Bill 2230) is named after investor Warren Buffet, and requires everyone making over $1 million a year to pay a minimum effective tax rate of at least thirty percent (30%). The planâ€™s intent is to raise taxes on the rich and bring more "fairness" to the tax code. It failed to pass the Senate on April 16, 2012.