Wyden-Gregg Bill in Senate is Promising

Senators Ron Wyden (D-OR) and Judd Gregg (R-NH) have introduced a bill that promises to simplify the tax code and eliminate certain preferences. At first glance, the bill looks promising.

"For far too long, our tax system has been overly complicated, burdensome and unfair to taxpayers and to small businesses that are the economic engines of our nation," Mr. Gregg said in a statement."

Amen to that.

Following are a few of the highlights of the bill:

1. The bill would see a single corporate income tax rate of 24% established (a substantial cut from the current 35%)
2. Allow small businesses with sales of up to $1 million to expense 100% of their equipment and inventory costs each year.
3. Triple the standard deduction.
4. The initial 35% of capital gains income would be exempt from tax.
5. Reduce the number of tax brackets for individuals from six to three (15% , 25% and 35%).
6. Best of all, the bill would eliminate the alternative minimum tax. .

So far, so good. It's not clear what the offsets are for some of the tax cuts, so we'll reserve judgment until that becomes more clear.