:60 Second Survey: Federal Income Tax Simplification

Tax simplification has been a topic of discussion since the 115th Congress began in January of this year. The debate has moved from "if" Congress will take steps to reform and simplify the federal tax code to "when" it will happen.

One major component of tax simplification will be through changes to federal income taxes.

Over the past few years there have been three income tax proposals Iowans consistently bring up with me in conversations.

They are:

- Simplifying the current federal income tax by reducing the number of tax brackets from seven to three. This would maintain our current progressive income tax system but create only three brackets of 10%, 25% and 35%.

- Replacing the current progressive federal income tax with a flat tax. This would mean that all taxpayer's income would be taxed at the same one rate - regardless of income.

- Replacing the current progressive federal income tax with a consumption tax - or what some also have termed as a Fair Tax. This would mean that all income taxes would be replaced with an additional amount you would pay when you purchased new goods and services - much like a state sales tax. With this type of tax your income would not be subject to a tax. This would only charge you a flat sales tax on what you chose to spend on new goods and services.

Which federal income tax reform would you most favor? (Click to participate)