Choices for Tax Policy

Our tax code needs to be updated to reduce the number of tax avoidance strategies that legally lower tax liability at higher incomes.  As a start, I propose: 

• Revising the tax code to phase out all tax deductions, preferential tax rates, credits at higher incomes, effectively creating a Flat Tax Rate at higher incomes.  For individuals, allow tax deductions, preferential tax rates and credits below a threshold income and eliminate tax deductions, preferential tax rates and credits above a threshold income of $400,000, which is indexed to inflation. 

This is a starting point.  There are other changes, such as eliminating stepped-up cost basis of assets from inheritances, which I support to reduce tax avoidance strategies.

However, I oppose mark-to-market taxing of assets before the assets are sold.