Across the country, new legislation is being introduced that could change the way Americans are taxed at the state and federal level. CNBC's "Power Lunch" took a closer look at what this could mean for you and your money with Patrick Gleason of Americans for Tax Reform and Harry Stein of the Center for American Progress. Here's what they had to say.
Rep. Van Hollen Plan
Maryland Democratic Rep. Chris Van Hollen revealed a plan Monday that would shift tax breaks from the wealthiest Americans to the middle class. It would create a savers' bonus, limit top-tier breaks and impose a 0.1 percent tax on stock trades.
Gleason: "On eliminating various credits for upper-income individuals and corporations, let's talk about this but let's do so in the context of broad-based, tax rate-lowering reform that reduce rates for all people. If this was passed it would reduce the likelihood of getting broad-based tax reform done because it would take away a lot of the pay force for doing that."
Stein: "I think the bones of this are very good. He's putting money in workers' paychecks, helping people keep more of the money that they earn. He's not taking wealth from people at the top, he's focusing on the money, on these enormous government subsidies that are delivered through the tax code, so let's pare those back and help everybody."
Mayor de Blasio's Tax Plan
Gleason: "This would be essentially a corporate commuter tax. How much does that affect businesses' willingness to do business in new York? So that's the big issue with that."
Stein: "De Blasio is harmonizing the city's corporate tax regime with the changes that have been made at the state level. That's a reasonable thing to do. Now the devil is still in the details and we still need to see those."
California Sales Tax
In California, there is a plan to expand the tax base by applying a sales tax to things such as legal work, Internet usage and even dry cleaning. By contrast, it would lower personal and corporate income taxes as a part of a bargain to boost the minimum wage.
Gleason: "Higher taxes have led to dramatic out-migration from states, and research has shown that adding higher taxes on to that to not be a good idea."
Stein: "The thing to ask when you are broadening the sales tax is who is going to bear the burden of these taxes? Often times with state taxes, and particularly the sales tax, it's a regressive tax, which means it's borne by people at the bottom. So I think states need to think hard about who's paying their taxes."