The Democrats need to start framing tax policy more in terms of flat "tax credits."

[coti]

No, NOT "flat-taxes." A flat tax rate would be regressive and very bad.

However, if you flip the tax frame around and start talking (more often) about flat, across the board tax CREDITS (not deductions), the simplicity of flat tax arguments becomes very progressive and starts working in favor of American workers.

For example, consider giving a $5,000, across-the-board tax credit to every single American taxpayer. That would be a HUGE gain for the middle-class and poor. It would also be money that would be spent immediately and flow right back into the economy. For the rich, it would still be a tax credit- and fair, since everyone is getting the same credit- but it wouldn't increase the deficit by any appreciable amount on THEIR account.

Over the past decade, a number of small, across-the-board tax credits have been given to people. The "Making Work Pay" $400 and $800 credits are a good example of this. They just aren't big enough, though. The credits should be in the multiple thousands of dollars. In theory, with flat tax credits we should be able to drastically reduce the tax burden placed on the middle class. Voters would like that. Couple the flat tax credit idea with much more progressive tax rates to reduce or eliminate the deficit, and we may never even have to seriously debate tax policy with Republicans again.

[coti]

1. Kick nt