For the Wealthy, a 28 Percent Solution

Everyone knows that America’s tax code is a mess, yet despite considerable talk when elections come around, we’ve done nothing substantial to fix it. What is odd is that there is broad agreement on what should be done. We should strive to get the “lowest possible tax rates on the broadest base,” as five well-known conservative economists put it recently

In a nutshell, the fewer deductions and other “tax expenditures” we have, the lower the rates can be. That part is simple.

The problem is that cutting rates is more popular than closing loopholes, especially those like the mortgage-interest deduction that are used by millions of taxpayers. But there is a possible solution.

I call it the modified Reagan 28 plan, or just the “28 plan” for short.