Tuesday, August 29, 2006

Federal Appeals Court ruling may push tax reform

Interesting read from Bruce Bartlett's column:

"Last week, a federal appeals court in Washington handed down an important decision relating to the definition of income for tax purposes. What is important about the decision is that it is the first one in decades saying that the Constitution itself limits what the government may tax. If upheld by the Supreme Court, it could significantly alter tax policy and possibly open the door to radical reform. "

His column goes on to explain how tax scholars around the country predict this will open the flood gates for challenges to what can be deemed taxable income. This should be interesting to watch as more rulings get handed down concerning the income tax. This is going to get ugly, but might be just the ruling to help the FairTax become an even more timely issue.

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