The Cato Institute on Thursday released a 44-page report, Options for Tax Reform.  Here is part of the Executive Summary:

This study looks at possible changes to address those problems. It identifies three goals for tax reform: simplification, efficiency, and limited government. The latter goal focuses on tax code features such as visibility and equal treatment that cultivate an understanding of the high cost of government. This study examines reform options including a flat tax, a national retail sales tax, and a savings-exempt tax in reference to those goals. It also proposes a new option: a "dual-rate income tax." This revenue-neutral option would convert the individual income tax to a two-rate system that eliminates most deductions and credits and allows nearly all families to pay tax at a low 15% rate. A 27% rate would kick in for earnings above $90,000 (single) and $180,000 (married).

To promote growth, the maximum individual rate on dividends, interest, and capital gains would be 15%. The corporate tax rate would be dropped to 15% and interest made non-deductible. These changes would equalize and cut the combined top income and payroll tax rates on wages, dividends, interest, and small business income to just under 30%, compared with between 35% and 45% under current law.

The dual-rate tax plan would retain the standard deduction, an expanded personal exemption, and the earned income tax credit. The plan would create a simpler and more efficient taxcode within the structure of today’s system and may be just the type of tax plan that the president’s advisory panel is looking for.