Name: |
water_watcher
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Subject: |
My tax plan
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Date:
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11/6/2011 4:13:57 PM
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INDIVIDUAL
TAXES
A 3 tier flat tax on all income, no deductions. Tiers are based on "excess" income
over certain levels. It would be on
individual income from all sources (not combined for married people).
For example,
Tier I:
10% flat tax for all income over $15K up to $200K (the first $15k is
excluded for everyone and pay no income tax, only a small consumption tax).
Tier II:
Tax from Tier I plus 20% tax on the excess over $200K up to $500k
Tier III:
Tax from tiers I & II plus 30% tax on the excess over $500K.
Examples: $50K pays $3,500 ($50k - $15k * 10%)
$100K pays $8,500 ($100k - $15k * 10%)
$300K pays $38,500 (Max tier I=$18,500 + $100K * 20%)
$750K pays $153,500 (Tier I & II max =$78,500 + $250K *
30%)
Consumption tax: 2.5% on all purchases other than personal capital
items such as homes and vehicles. This also
serves to generate some tax revenue on illegal income, and higher incomes would
automatically pay more of the tax burden, since their spending would be
higher. Business “could” be exempt with
a valid exemption certificate so there is only one tax collected and not have a
compounding effect.
CORPRATE
TAXES
Approach would be very simple ... all
corporations pay 15% tax on calculated income before book depreciation
and any individual compensation over $500k (excess over only) to satisfy the
excessive income hawks.
All new capital
spending “in the US only” would be allowed a 3 year write off. This would promote US investment and overseas
investment gets no capital write-off. Companies
still in a loss position after these add backs, (ie start-ups and those in
financial difficulty) would have up to a 3 year limit for not paying taxes
under this structure ... then it would revert to a minimum tax of 3% of
revenue.
SOCIAL SECURITY & MEDICARE TAX
Since you cannot keep raising retirement age.
You also want people to retire and allow others to move up and fill
positions of those that should leave the workforce.
Going to a
"lower rate" on "all income" may be the answer. Instead of a combined 7.65% up to a limit (Medicare
already has no cap), go to 4.2% on all income. It brings in more revenue, the lower
income people will pay less for the benefits they ultimately receive, while
higher incomes will pay slightly more. The
lower rate raises the breakeven point so only the highest incomes will
ultimately pay more.
There should be
an option to invest a portion of what is contributed above a certain level for
new people entering the workforce for the opportunity for a higher payout when
they retire … or allow the company match to go in to a 401K or similar plan.
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