However major tax reform is needed. Reform to one rate on wages and income, where capital gains and dividends should be taxed as regular income (adjusted for inflation for capital gains greater than one year), eliminate corporate and payroll tax in substitute for VAT and Origin Based Cash Flow Tax, Provide everyone with UBI (only tax credit), and only deductions allowed on income tax is $ put into "Federal Saving Accounts" (i.e. Housing/Rent, Healthcare, Education, and Retirement). This will make taxes progressive overall with similar but stronger incentive structure relative to Earned Income Tax Credit. Capital Losses can be used in subsequent tax years, but only for subsequent capital gains, not ordinary income.
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