Monday, January 19, 2009

Standard Deduction

I mentioned earlier that I liked the blog "Adam Smith's Lost Legacy" and I do. For example, I came across the following post wherein Gavin Kennedy argues for one of my preferred changes to the tax code. Gavin is writing about the UK tax system specifically, but the same principal applies to the US standard deduction. I believe that tax cuts should be considered, even in this time of recession, but the appropriate form of those cuts is an increase in the standard deduction. Get golks at the lower end of the income distribution off the income tax rolls. Such tax cuts would be a stimulant to the economy. When tax cuts are discussed it seems to me that the only form of cuts considered are changes in the tax rates. But a rise in the standard deduction should be a part of any progressive policy proposal.



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