On CNBC today there was discussion of Barrack Obama's proposed tax plan. He talked about simplifing the tax code, but his proposals seemed likely to further complicate it. No one proposes it, but the best approach would be to just start over. Obama says that there are trillions of dollars of loopholes in the Corporate tax code. That seems unlikely. He wants to increase corporate taxes while the rst of the world is reducing them. He also wants to increase the capital gains and dividend tax rates, again going the opposite direction from the rest of the world. He wants to increase the refund to people who do not owe any taxes (one of Nixon's bad liberal ideas). It was said that the plan would take another 10% of the people off of the income tax roles. That would mean that over 50% of the people would not be paying any income tax. What happens when a majority of the people start voting to raise taxes on the minority? Would the productive people start leaving, voting with their feet? Remember that early in Bill Clinton's presidency there was a proposal to prevent the exit of capital from the US. Expect similar legislation to be proposed when Democrats regain the Presidency.