WILMINGTON, NC (WWAY) — With the country heading closer to the edge of the so-called fiscal cliff, many Americans are hoping Congress will reach a compromise soon.
One UNCW professor says she has come up with a plan that would satisfy both sides.
“Almost all Americans that are paying income tax will see their taxes go up,” UNCW Accounting and Taxation Professor Dr. Cherie Hennig said. “We have agreement on the Republican and the Democratic side for 98 percent of the taxpayers seeing no increase. The disagreement is on that ‘two percent.'”
Hennig says she and three other tax professors across the country have come up with a plan to satisfy both sides. They call their plan the MAXTax Fix. The plan would cap the tax on small business owners at a 34-percent rate, which is the same as the corporate tax rate. They say the proposal agrees with the Republican idea of protecting small businesses from higher taxes.
“When Rep. (John) Boehner says that a tax increase to 39.6 percent would adversely affect small business owners, that is correct,” Hennig said
But the plan also acknowledges the Democrats’ stance that the wealthy can afford to pay more.
“It would give President Obama what he wants: an increase in the graduated tax rate so that the top rate would be 39.6 percent,” she said.
That highest rate would apply to people making at least $390,050.
Hennig believes the American people are tired of the fighting in Washington. She says there is no reason the two sides cannot come together.
“We come from different universities, different political backgrounds. If the four of us can agree, it seems that there should be the opportunity for Congress to come together in a compromise,” Hennig said.
The MAXTax Fix plan was published today in a major accounting journal. The authors also submitted directly to House Speaker Boehner.
6 Comments
That sounds like an idea a college “professor” would come up with, a left winger to be more exact, why should one oerson pay 39.6% and another pay nothing? Obviously an idea coming from someone that has never done a private sector job in their life, the problem in this country is not a lack of incoming funds, it’s a total lack of control over SPENDING someone else’s money!! No wonder the kids coming out of college nowadays with big diploma;s and titles are so confused and aren’t able to find jobs!
don’t agree with passing taxes on anyone…UNTIL our government reigns in SPENDING..however I see it as VERY unfair that they want to tax a single person that makes over 200,000 or a couple making over 250,000. MARRIAGE PENALTY!…if a single person can make 200 grand before being taxed at a higher rate, then a couple should be able to make 400 grand…
have no idea how the real world works. They spend their working years in an insulated cocoon of theory and couldn’t run a business if their lives depended on it.
There’s an old saying…”Those who can…do. Those who can’t…teach.”
So, I own a small business and I’m a one man band right now. I pay income tax. The profits from my company go into my income, which I pay tax on. Then I should pay corporate income tax or a “small business” income tax? I’m getting twice for the same earnings! It’s absurd. The entire concept of a corporate income tax should be eliminated.
I have an other fiscal cliff solution…
The democrats tell tax the richs. The republicans tell, don’t tax the richs, they have no more money, to create jobs. And only 25% of the richs really create the jobs, they are entrepreneurs.
The solution is : Tax the richs, and exempt the entrepreneurs.
You have tax income, from 75% of the richs.
The entrepreneurs have more money, to invest in them company and create jobs.
The other richs are stimulate, to create US jobs.
Is the triple action measure…
Richard Gauthier
…they are interested in themselves and their political party. Screw the people, screw the country…the new political agenda.