President Bush's reform panel's plan erases most tax breaks...

[nickshepDEM]

Plan A would:
* Cut the number of income tax brackets from six to four – 15 percent, 25 percent, 30 percent and 33 percent.
* Eliminate the marriage penalty.
* Revamp capital gains taxes so that stocks and dividends would only be taxed at the individual level, not the corporate one, too.
* Eliminate deductions for state and local taxes.
* Limit the home mortgage deduction
* Expand the capital gains exclusion on home sales from $500,000 to $600,000 for couples.
* Cap the amount of tax-free money an employer could pay for a workers' health insurance plan to $11,500 for families. Anything paid above that threshold would be treated as taxable income to the worker.
* Reduce the variety of tax-advantaged retirement and health savings plans to just three types: "save for retirement" accounts, which would replace IRAs and deferred compensation plans; "save for work" accounts, which would replace employer-provided retirement savings plans like 401(k)s; "save for family" accounts, which would replace health savings, medical savings and flex-spending accounts.

Plan B would:
* Impose a flat tax of 15 percent for individuals on capital gains, interest and dividends
* Reduced the number of income tax brackets from six to four – 15 percent, 25 percent, 30 percent and 33 percent
* Allow for a limited mortgage interest deduction; and
* Eliminate the AMT


What do you guys/gals think?