Tax Everyone the Same: A "Flat" Progressive Tax

[GHook93]

Why not take out the loop holes, tax shelter and class warfare and simplify the system. If we can't go to the fair tax then go to a progressive incremental income tax. Meaning everyone first $25K gets taxed the same, ditto for the next $50K, $100K, $250K, $1 mil extra. Take out the loopholes and tax deductions and we have a better system. The business owner is taxed obvious on income (so they will in theory still have tax breaks), since we can't tax them on gross it must be on net.

For example, Mr A. make $25K, Mr. B $50K, Mr. C $250K, Mrs. D $1 mil and Ms. E $55mil a year

Tax Levels.....Rate
1-$25K.....................0%
$25K-$50K...............10%
$50K-$150K.............15%
$150K-$250K...........20%
$250K-750K.............25%
$750K-$2 mil...........30%
$2 mil-$10 mil.........40%
$10 mil-$50 mil........50%
$50 mil+..................90%


Mr A (makes $25K) pays $0.
Mr B (makes $50K) pay $2,500 (First 25K at $0, next $25K at 10%)
Mr C (makes $250K) pays $42,500 (First 25K at $0, next $25K at 10%, next $100K at 15%, next $100K at 20%)
Mrs D (makes $1 mil) pays $242,500 (First 25K at $0, next $25K at 10%, next $100K at 15%, next $100K at 20%)
Ms. E (makes $55 mil) pays $28,242,500 (You do the math )

This system doesn't disincentive people to make more, since everything previous to the next bracket gets taxed at the dollar amount. No more tax shelter, not more accounting tricks, not more audits, no more tax cheats. Simple tax everyone the same on income coming in. Yes it appears I put a max income of $50 mil (shoot me I'm a commie )

 

[martybegan]

Why not take out the loop holes, tax shelter and class warfare and simplify the system. If we can't go to the fair tax then go to a progressive incremental income tax. Meaning everyone first $25K gets taxed the same, ditto for the next $50K, $100K, $250K, $1 mil extra. Take out the loopholes and tax deductions and we have a better system. The business owner is taxed obvious on income (so they will in theory still have tax breaks), since we can't tax them on gross it must be on net.

For example, Mr A. make $25K, Mr. B $50K, Mr. C $250K, Mrs. D $1 mil and Ms. E $55mil a year

Tax Levels.....Rate
1-$25K.....................0%
$25K-$50K...............10%
$50K-$150K.............15%
$150K-$250K...........20%
$250K-750K.............25%
$750K-$2 mil...........30%
$2 mil-$10 mil.........40%
$10 mil-$50 mil........50%
$50 mil+..................90%


Mr A (makes $25K) pays $0.
Mr B (makes $50K) pay $2,500 (First 25K at $0, next $25K at 10%)
Mr C (makes $250K) pays $42,500 (First 25K at $0, next $25K at 10%, next $100K at 15%, next $100K at 20%)
Mrs D (makes $1 mil) pays $242,500 (First 25K at $0, next $25K at 10%, next $100K at 15%, next $100K at 20%)
Ms. E (makes $55 mil) pays $28,242,500 (You do the math )

This system doesn't disincentive people to make more, since everything previous to the next bracket gets taxed at the dollar amount. No more tax shelter, not more accounting tricks, not more audits, no more tax cheats. Simple tax everyone the same on income coming in. Yes it appears I put a max income of $50 mil (shoot me I'm a commie )

For this to work you would have to lower the upper brackets (90%? really?) and make it deal with ALL income, not just wages. basically anything that comes in.

The problem people will have with it is that they will lose thier favroite deductions. for it to work it would have to eliminate them ALL, credits, deductions, etc.

 

[peach174]

So how do the rest of us get jobs if millionaires have to pay more that half of taxes?
If you make 50 million you keep 10 million?
Do you know how much is paid out to workers and to keep a company running?
You have salaries, health Ins., expenses to keep it running.
If millionaire's are paying 40 to 90% taxes, their is no money for expansion to higher more workers.

 

[GHook93]

For this to work you would have to lower the upper brackets (90%? really?) and make it deal with ALL income, not just wages. basically anything that comes in.

90% once the person hit $50 mil in income a year!!! And that is only on the $50,000,001 and up!

The problem people will have with it is that they will lose thier favroite deductions. for it to work it would have to eliminate them ALL, credits, deductions, etc.

No doubt entitlements are easy to give and hard to take away! Nevertheless our tax structure is a mess and needs to be blow up!

 

[kwc57]

I don't see how someone else's failure to be responsible, get an education and a good job that pays well or hauls off and starts their own comany makes it my responsibility to pay more because I did those things. Rewarding laziness and penalizing hard work is back asswards.

 

[GHook93]

So how do the rest of us get jobs if millionaires have to pay more that half of taxes?
If you make 50 million you keep 10 million?
Do you know how much is paid out to workers and to keep a company running?
You have salaries, health Ins., expenses to keep it running.
If millionaire's are paying 40 to 90% taxes, their is no money for expansion to higher more workers.

Peach you realize the top 1% already pays 60% of the income taxes and, according to Larry Cudlow, the top 20% pay 90% of the income taxes. So the millionaires pay everything is not ignorant argument on your part.

You are aware I am talking about net profits. You know revenue minus cost. I think I specifically stated not gross income. Also the vast vast majority of people making over $1 mil a year are going to be C-Corp executives. Income taxes don't have any bearing on a C-Corps bottomline. They get hit with the dual Tax aka the corporate tax. So your argument that millionaires won't hire is proof you don't know what your talking about. It is true a good deal of the S-Corps and LLC, LP small business fall within the $250K-$750K range, they get effected by the income tax, but I think this scheme is favorable to them.

I am talking about a gradual increase on the actual dollar.

For your 50 mil a year executive, CEO, S-Corp owner etc. would pay $23,737,500.
25K = 0
50K = $2,500
150K = $15K
$250K = 20K
750K = $125K
$2 mil = $375K
$10 mil = $3.2 mil
$50 mil = $20 mil
Total: $23,737,500

 

[GHook93]

I don't see how someone else's failure to be responsible, get an education and a good job that pays well or hauls off and starts their own comany makes it my responsibility to pay more because I did those things. Rewarding laziness and penalizing hard work is back asswards.

Que?

 

[Herbie Hancock]

So how do the rest of us get jobs if millionaires have to pay more that half of taxes?
If you make 50 million you keep 10 million?
Do you know how much is paid out to workers and to keep a company running?
You have salaries, health Ins., expenses to keep it running.
If millionaire's are paying 40 to 90% taxes, their is no money for expansion to higher more workers.

Peach you realize the top 1% already pays 60% of the income taxes and, according to Larry Cudlow, the top 20% pay 90% of the income taxes. So the millionaires pay everything is not ignorant argument on your part.

You are aware I am talking about net profits. You know revenue minus cost. I think I specifically stated not gross income. Also the vast vast majority of people making over $1 mil a year are going to be C-Corp executives. Income taxes don't have any bearing on a C-Corps bottomline. They get hit with the dual Tax aka the corporate tax. So your argument that millionaires won't hire is proof you don't know what your talking about. It is true a good deal of the S-Corps and LLC, LP small business fall within the $250K-$750K range, they get effected by the income tax, but I think this scheme is favorable to them.

I am talking about a gradual increase on the actual dollar.

For your 50 mil a year executive, CEO, S-Corp owner etc. would pay $23,737,500.
25K = 0
50K = $2,500
150K = $15K
$250K = 20K
750K = $125K
$2 mil = $375K
$10 mil = $3.2 mil
$50 mil = $20 mil
Total: $23,737,500

When I saw this topic I was about to hop on the bandwagon and am really in favor of a flat tax, minus all deductions. However, your rates are really high and I feel that everyone, even those making less than 25k, should be paying something, at least 2-3%. Also does this do away with city, county, state taxes as well? If so, the percentages would have to be reduced further. I know right now I easily pay over 50% of my income in some sort of tax, highway robbery.

 

[Truthseeker420]

So how do the rest of us get jobs if millionaires have to pay more that half of taxes?
If you make 50 million you keep 10 million?
Do you know how much is paid out to workers and to keep a company running?
You have salaries, health Ins., expenses to keep it running.
If millionaire's are paying 40 to 90% taxes, their is no money for expansion to higher more workers.

Peach you realize the top 1% already pays 60% of the income taxes and, according to Larry Cudlow, the top 20% pay 90% of the income taxes. So the millionaires pay everything is not ignorant argument on your part.

You are aware I am talking about net profits. You know revenue minus cost. I think I specifically stated not gross income. Also the vast vast majority of people making over $1 mil a year are going to be C-Corp executives. Income taxes don't have any bearing on a C-Corps bottomline. They get hit with the dual Tax aka the corporate tax. So your argument that millionaires won't hire is proof you don't know what your talking about. It is true a good deal of the S-Corps and LLC, LP small business fall within the $250K-$750K range, they get effected by the income tax, but I think this scheme is favorable to them.

I am talking about a gradual increase on the actual dollar.

For your 50 mil a year executive, CEO, S-Corp owner etc. would pay $23,737,500.
25K = 0
50K = $2,500
150K = $15K
$250K = 20K
750K = $125K
$2 mil = $375K
$10 mil = $3.2 mil
$50 mil = $20 mil
Total: $23,737,500

link to top 1% paying 60% of taxes. That can't be right.

 

[Truthseeker420]

So how do the rest of us get jobs if millionaires have to pay more that half of taxes?
If you make 50 million you keep 10 million?
Do you know how much is paid out to workers and to keep a company running?
You have salaries, health Ins., expenses to keep it running.
If millionaire's are paying 40 to 90% taxes, their is no money for expansion to higher more workers.

Peach you realize the top 1% already pays 60% of the income taxes and, according to Larry Cudlow, the top 20% pay 90% of the income taxes. So the millionaires pay everything is not ignorant argument on your part.

You are aware I am talking about net profits. You know revenue minus cost. I think I specifically stated not gross income. Also the vast vast majority of people making over $1 mil a year are going to be C-Corp executives. Income taxes don't have any bearing on a C-Corps bottomline. They get hit with the dual Tax aka the corporate tax. So your argument that millionaires won't hire is proof you don't know what your talking about. It is true a good deal of the S-Corps and LLC, LP small business fall within the $250K-$750K range, they get effected by the income tax, but I think this scheme is favorable to them.

I am talking about a gradual increase on the actual dollar.

For your 50 mil a year executive, CEO, S-Corp owner etc. would pay $23,737,500.
25K = 0
50K = $2,500
150K = $15K
$250K = 20K
750K = $125K
$2 mil = $375K
$10 mil = $3.2 mil
$50 mil = $20 mil
Total: $23,737,500

link to top 1% paying 60% of taxes. That can't be right. Maybe if you just are counting personal income tax but I doubt it. And there is a difference between tax rate and tax burden.

 

[boedicca]

Uh. The OP is not a tax everyone the same plan.

So, thanks, but no thanks.

 

[Wiseacre]

A flat tax means applying the same rate to everybody. What you're talking about is a progressive tax with no deductions, no loopholes, no tax breaks. Probably could lower the rate drastically without losing revenue.

 

[GHook93]

So how do the rest of us get jobs if millionaires have to pay more that half of taxes?
If you make 50 million you keep 10 million?
Do you know how much is paid out to workers and to keep a company running?
You have salaries, health Ins., expenses to keep it running.
If millionaire's are paying 40 to 90% taxes, their is no money for expansion to higher more workers.

Peach you realize the top 1% already pays 60% of the income taxes and, according to Larry Cudlow, the top 20% pay 90% of the income taxes. So the millionaires pay everything is not ignorant argument on your part.

You are aware I am talking about net profits. You know revenue minus cost. I think I specifically stated not gross income. Also the vast vast majority of people making over $1 mil a year are going to be C-Corp executives. Income taxes don't have any bearing on a C-Corps bottomline. They get hit with the dual Tax aka the corporate tax. So your argument that millionaires won't hire is proof you don't know what your talking about. It is true a good deal of the S-Corps and LLC, LP small business fall within the $250K-$750K range, they get effected by the income tax, but I think this scheme is favorable to them.

I am talking about a gradual increase on the actual dollar.

For your 50 mil a year executive, CEO, S-Corp owner etc. would pay $23,737,500.
25K = 0
50K = $2,500
150K = $15K
$250K = 20K
750K = $125K
$2 mil = $375K
$10 mil = $3.2 mil
$50 mil = $20 mil
Total: $23,737,500

When I saw this topic I was about to hop on the bandwagon and am really in favor of a flat tax, minus all deductions. However, your rates are really high and I feel that everyone, even those making less than 25k, should be paying something, at least 2-3%. Also does this do away with city, county, state taxes as well? If so, the percentages would have to be reduced further. I know right now I easily pay over 50% of my income in some sort of tax, highway robbery.

Herbie Hancock LOL, Tommy Boy was a funny movie. Obvious the tax levels are negotiable and not set in stone. It was just a example to illustrate what I mean at tax income per dollar rather than the entire income at a certain rate.

A flat tax sound good in theory, but in reality 10% of a person's economy at $20K vs $100K matters.

 

[boedicca]

Then put a floor at $40K, and tax everything above that at 15%. Period. And get rid of SS, Medicare and all federal excise taxes.

 

[California Girl]

So how do the rest of us get jobs if millionaires have to pay more that half of taxes?
If you make 50 million you keep 10 million?
Do you know how much is paid out to workers and to keep a company running?
You have salaries, health Ins., expenses to keep it running.
If millionaire's are paying 40 to 90% taxes, their is no money for expansion to higher more workers.

No, you pay 90% on everything OVER the first $50m. Not rocket science. Read. Comprehend.

 

[FuelRod]

Do you have any inclination of the population at the various income levels?
The retardation is staggering.

 

[GHook93]

Uh. The OP is not a tax everyone the same plan.

So, thanks, but no thanks.

Yes it is. Take to people one who make $75K and one who makes $100K! Both pay $0 on their first, next $25K at $2,500 and then A pays 15% on his next $25K and B pays 15% on his next $50K.

Just trying to think out of the box here Boedicca, since my dream of income, payroll, capital gains and corporate being replaced with the fair tax is a pipe-dream!

 

[kwc57]

I don't see how someone else's failure to be responsible, get an education and a good job that pays well or hauls off and starts their own comany makes it my responsibility to pay more because I did those things. Rewarding laziness and penalizing hard work is back asswards.

Que?

Why should I pay a higher percent than anyone else? If we are going to have true shared sacrifice, then everyone needs skin in the game. The guy who makes $1M doesn't want to give up his hard earned money any more that the guy who made $1K. Simply because he has more money doesn't necessarily mean he won't miss it. It is his, he earned it, he is entitled to it. No one else. Start confiscating other people's money because "they don't need it" and other people do and you'll kill any incentive for people to do well for "themselves". I don't think that is where we want to go, do you? I'm not even in favor of a flat rate across the board. I support the Fair Tax.

 

[GHook93]

A flat tax means applying the same rate to everybody. What you're talking about is a progressive tax with no deductions, no loopholes, no tax breaks. Probably could lower the rate drastically without losing revenue.

Flat was in " "!!! So yes its not a flat tax. And I am talking about a progressive dollar per dollar tax.

 

[Skull Pilot]

Here's a better plan.

10% on every dollar of income period.

If you earn $1 a year, you pay 10 cents.

If you earn $1ooK you pay $1000

If you realize $100 million in capital gains you pay $1million.

Done. No need for lawyers, accountants, the IRS etc.