bripat9643
Diamond Member
- Apr 1, 2011
- 170,170
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I make s change to SSN.
How I would change Fed and State taxes:
(1) Income:
State: New Amendment the states can not tax income more than 1%
Fed: Flat progressive tax. Each dollar is taxed at the same level.
Your first $30k = 0%
Your next $30-$50k = 5%
Your next $50-$75k = 10%
Your next $75-$150k = 15%
Your next $150-$250k = 25%
Your next $250-$500k = 30%
Your next $500-$1 mil = 40%
Your next $1 mil-$5 mil = 50%
Over $5 mil = 80%
For example say you make $6 mil you pay $3.125 mil in taxes, but if you make $250k you pay 52k effective rate of 21%.
No standard deductions:
Dollar for dollar charity deduction all levels
No further deduction over $1 mil + income.
Standard mortgage and student loan interest.
Deduct medical and dental insurance premiums
Medical expense up to $100k
Deduct school tuition payments
Deduct $2500 a kid up to 5 kids
Produces nice revenue, very advantageous to the middle class. Doesn’t hurt incentive to make as much as possible because every dollar gets taxes at the level evenly across the board.
(2) Corp tax
State: max state at 2%
Fed:
Three levels a not sure the amount make it Flat progressive at 10% - 15% - 20%
(3) Capital Gains - Flat progressive. Funds Medicare/Medicaid
1-$250k - 15%
$250k - $500k - 25%
$500 - $1 mil 30%
$1 mil+ 35%
(4) VAT Tax of 20%. Funds Medicare/Medicaid
(5) SSN
Keep SSN at current levels (3.5% a piece between employer and employee), but end other payroll taxes. However end collective SSN pension and adopt the Chilean model of individual plans with only specific safe investment. SSN currently provides a negative return, while the Chilean model has been producing a 7-10% return.
(6) Property Taxes
Make a fed law that the states can not levy more than 1.5 of current market value of what the home would sell on open market (which takes in account foreclosure). Each state must set up an independent arbitrator system where the loser must pay the Arbitrator’s fees (can’t exceed $1k).
(7) End defined gov worker pension plans and require replacing with individual plans (aka 401k). Pass an amendment that disallows this.
(8) Create the balances Budget Amendment
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An 80% tax rate is ridiculous.
And a flat tax has no tax brackets. IMO if we are going to have an income tax we need to get rid of all tax deductions and charge one low rate from the first dollar earned no matter how it is earned be it from a job or as capital gains.
Get rid of or at least greatly reduce the size and cost of the IRS and apply that savings to lower the tax rate.
IMO a national sales tax would be the better option since it would be much tougher to avoid and people couldn't dodge it
I meant flat at the specific level. Meaning if I make $150k my first $50k is taxed at the lower rate as the person who makes only $50k.
80% kicked in only on your first dollar over $5 mil a year and isn’t applied to any dollar made under $5 mil. Few hit that level and I won’t cry for the actors and athletes that are screaming for equality that are hit with it.
Deductions promote good behavior like home ownership, starting a family, going to college etc
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That's not a flat tax. It's a progressive tax.