What is your ideal Federal Income Tax structure?

[jc456]

Mine is:

15% flat tax on any income over $20,000 and a 1% FEDERAL SALES TAX ON ALL NON-FOOD ITEMS.

No exemptions. No deductions.

Simple..easy...fair.

I loved the movie Robin Hood as a kid... I would love a Robin Hood tax structure.

Take all the money away from the rich and give to the poor. Tax the hell out of them. Republicans call high taxes on the rich theft, I say who cares they deserve to have most of their money taken away from them via taxes. Robin Hood was my hero as a kid, do whatever needs be done to take away all the money from the rich and give it to the poor. Tax the hell out of them. Evenly spread the wealth. Tax the upper-middle class like crazy too.

the uneducated are funny to watch.

 

[ColonelAngus]

Progs tax structure:

TAX THE RICH AT 150%.

No one else pays any taxes.

Prog math

 

[BulletProof]

Of course it is since it is a refundable tax credit and people can actually receive more of a refund that they actually paid in taxes

Ooooh, we're all impressed with your tax knowledge!!

 

[ScienceRocks]

The one we had in 1950

Rich paid more because they used far more and they generated their money off of our economy. Fair is fair.

Poor paid some
Middle class paid a little more

 

[bripat9643]

The one we had in 1950

Rich paid more because they used far more and they generated their money off of our economy. Fair is fair.

Poor paid some
Middle class paid a little more

The rich actually use less. Progressive tax schemes suck all money out of the economy that would have been saved or invested. They retard economic growth and harm the poor.

 

[Zander]

10% Flat tax for all. No exemptions, no deductions.

Corporations pay 10% flat tax on US earnings.

 

[BulletProof]

The rich actually use less. Progressive tax schemes suck all money out of the economy that would have been saved or invested. They retard economic growth and harm the poor.

That's why you advocate a tax policy based on getting blood from turnips and increasing the number of people who need welfare because of burdensome taxes. Somewhere in that sentence is the acronym IDIOT.

 

[The Sage of Main Street]

Mine is:

15% flat tax on any income over $20,000 and a 1% FEDERAL SALES TAX ON ALL NON-FOOD ITEMS.

No exemptions. No deductions.

Simple..easy...fair.

It will never work. Politicians use the IRS as a political weapon. Those who grease their wheels are rewarded with tax breaks, and their enemies will be targeted by the IRS.

It's like Obama. He let corporations like GE not pay any taxes because they supported his campaign, and then turned around and targeted conservative groups with the IRS.

Trump also plays this game. I hear with his new tax scheme people will no longer be able to deduct their state income taxes. Well guess who this hurts? It hurts those the worst who live in liberal high tax states. It's like sticking a dagger into your enemy and twisting the blade.

So no, politics is not about fairness and unity, rather, it is about divisiveness and conquest and power

Time to Stop Whining and Start Making Wine

Since you have this unrealistic attitude that we can't do anything about corruption, you must be for it. That is a typical political-narrative deception. Your real goal is to prevent the public from standing up to the ruling class, even though we far outnumber them and can crush them like grapes.

 

[The Sage of Main Street]

10% Flat tax for all. No exemptions, no deductions.

Corporations pay 10% flat tax on US earnings.

Today's Educational Scheme Is an Insult to Intelligence

As a substitute for some of their tax bill, corporations will recruit, sign up, and pay a salary and tuition to the smartest high-school graduates. Their after-tax earnings will be the same as they are under the present indentured-servitude system that the hypocritical ruling class mandates for everybody but its own sons.

The Yankees gave Derek Jeter $900,000 to put himself through baseball's equivalent of college education. Over and above that and his salary for 20 years, their retun on investment was over 200 times what they gave Jeter up front.

 

[Skull Pilot]

Of course it is since it is a refundable tax credit and people can actually receive more of a refund that they actually paid in taxes

Ooooh, we're all impressed with your tax knowledge!!

**** you

 

[GHook93]

Mine is:

15% flat tax on any income over $20,000 and a 1% FEDERAL SALES TAX ON ALL NON-FOOD ITEMS.

No exemptions. No deductions.

Simple..easy...fair.

How I would change Fed and State taxes:

(1) Income:
State: Amendment they 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

(2) Corp tax
State: max state at 2%
Fed:
Three levels a not sure the amount make it Flat progressive alps 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) Medicare/Medicaid and SSN
Keep SSN at current levels but end the other payroll taxes.

(6) Property Taxes
Make a fed law the states can not levy more than 1.5 of current market value of what the home would sell on open market. Each state must set up an independent arbitrator system where the loser must pay the Arbitrator’s fees (can’t exceed $1k).

(7) End defines gov worker pension plans and require replacing with individual plans (aka 401k).

Far too complicated!

What part? I hit taxes at every level


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[GHook93]

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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[Skull Pilot]

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

 

[oldsoul]

15% is too low.

15% is too low even without any deductions, exemptions,or credits? Doesn't sound like it would ease much of a burden on taxpayers then.

As of 2011 (I know it's old, but for sake of argument let's go with it), total personal income was 12.95 trillion. So, a 15% tax would net 1.9425 trillion. Total expenditures that year were just over 3.6 trillion. So, short of even more deficit spending, or spending cuts, 15% would indeed be too low, for fiscal 2011 at least. I doubt it has changed significantly. So, with current spending the tax would need to be around 30%. Anyone else see a problem with spending here?

1. The income tax does not constitute total federal revenue.
2. Federal revenue is significantly lower than $3.6 trillion.
3. Income taxes plus payroll taxes were about $2.5 trillion in 2015. A 20% rate would probably generate that amount.
4. Lots of people don't pay income taxes for various reasons. Everyone would pay the FAIR tax, so revenue would probably be considerably larger.

I think you are missing my point here. It's not where the money comes from, it's that the money isn't enough to cover the spending. There I spelled it out for you. Now, comment on that.
That said:
1) gee, ya think?
2) Um, that's part of my point.
3) could we compare apples to apples here?
4) as discussed in an earlier post, the number who don't pay any federal tax is actually relatively low. The percentage of those who don't pay federal income tax that would, under the "fair tax", is largely comprised of the poor, and elderly. Great, now Grandma can pay her "fair share" too.

I would also like government spending to be a lot lower, but that's another issue. The question is, If we are going to raise the same amount of revenue, how is the best way to do it. The income tax is intrusive, overly compicated and harmful to the economy.

1. Your post argued as if it was.
2. No, that wasn't your point. You assumed the FAIR tax would have to cover the entire federal budget.
3. I am comparing apples to apples: the revenue that the FAIR tax would have to replace
4. There are a lot of people making money off the books that would have to pay taxes under the FAIR tax. I'm talking about drug dealers, prostitutes, people doing work under the tables, yada yada yada

I would also like government spending to be a lot lower, but that's another issue. The question is, If we are going to raise the same amount of revenue, how is the best way to do it. The income tax is intrusive, overly compicated and harmful to the economy.

I wholeheartedly agree.
1) I apologise for my lack of clarity.
2) Again, I apologise for my lack of clarity. My point was, indeed, that spending is out of control, and far exceeds revenue, whatever the source, or method.
3) No, you are not. I was referring to 2011 numbers, and you, in turn, used 2015 numbers. Thus, not the same, and the basis of my comment.
4) It would seem as though you refer to a "consumption tax", which some concepts dubbed a "fair tax" certainly are. Not all "fair tax" systems are "consumption tax" systems though. For example, some have dubbed a "flat tax" on income as a "fair tax". So, in the interest of clarity, might we ensure that we define what is meant by a "fair tax"?

 

[Admiral Rockwell Tory]

Mine is:

15% flat tax on any income over $20,000 and a 1% FEDERAL SALES TAX ON ALL NON-FOOD ITEMS.

No exemptions. No deductions.

Simple..easy...fair.

How I would change Fed and State taxes:

(1) Income:
State: Amendment they 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

(2) Corp tax
State: max state at 2%
Fed:
Three levels a not sure the amount make it Flat progressive alps 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) Medicare/Medicaid and SSN
Keep SSN at current levels but end the other payroll taxes.

(6) Property Taxes
Make a fed law the states can not levy more than 1.5 of current market value of what the home would sell on open market. Each state must set up an independent arbitrator system where the loser must pay the Arbitrator’s fees (can’t exceed $1k).

(7) End defines gov worker pension plans and require replacing with individual plans (aka 401k).

Far too complicated!

What part? I hit taxes at every level


Sent from my iPhone using USMessageBoard.com

A state tax of 2%? My state tax is fairly low and it is 6% now.

 

[jc456]

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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you just flushed all of the money out of the country and increased the poverty level. congrats.

 

[Little-Acorn]

What is your ideal Federal Income Tax structure?


Same one that's in the original Constitution, but with "mandatory" thrown in.

Citizens no longer send in Income Taxes directly to the Federal Govt. Each state sends its citizens' Income Taxes to the Fed govt, according to the population of the state. If State A has twice the population of State B, then State A's share of Federal Income Taxes is twice as much money as State B's share.

And each state can then turn around and charge its own citizens in any way it likes, for Federal Income Taxes it paid to the Fed. If a state wants to change its wealthy citizens hugely while changing its lower 50% practically nothing (as the Fed does today), it can. Or if it wants to charge the same percentage of all its citizens ("flat" tax), it can do that instead. Or a consumption tax, or some other scheme. It's totally up to the states.

Of course, if a state wants its highest earners (and producers) to remain in the state, if might be a good idea for them to NOT "soak the rich" too much. Then their most productive citizens might not flee to a lower-tax state. This is also totally up to the states to decide.

Competition. It's a wonderful thing.

All the Fed does is decide how much the total income tax burden is, that it needs from citizens. Then it divides that amount by the number of people in the U.S. Then it tells each state, "You have NNN million people, so you have to send MMM million dollars to Washington DC". It's up to each state to decide how that state wants to collect it.

 

[g5000]

What is your ideal Federal Income Tax structure?


Same one that's in the original Constitution, but with "mandatory" thrown in.

Citizens no longer send in Income Taxes directly to the Federal Govt. Each state sends its citizens' Income Taxes to the Fed govt, according to the population of the state. If State A has twice the population of State B, then State A's share of Federal Income Taxes is twice as much money as State B's share.

And each state can then turn around and charge its own citizens in any way it likes, for Federal Income Taxes it paid to the Fed. If a state wants to change its wealthy citizens hugely while changing its lower 50% practically nothing (as the Fed does today), it can. Or if it wants to charge the same percentage of all its citizens ("flat" tax), it can do that instead. Or a consumption tax, or some other scheme. It's totally up to the states.

Of course, if a state wants its highest earners (and producers) to remain in the state, if might be a good idea for them to NOT "soak the rich" too much. Then their most productive citizens might not flee to a lower-tax state. This is also totally up to the states to decide.

Competition. It's a wonderful thing.

All the Fed does is decide how much the total income tax burden is, that it needs from citizens. Then it divides that amount by the number of people in the U.S. Then it tells each state, "You have NNN million people, so you have to send MMM million dollars to Washington DC". It's up to each state to decide how that state wants to collect it.

Here's the problem with your idea:

Average household income for Maryland: $75,847
Average household income for Mississippi: $40,593

 

[GHook93]

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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[GHook93]

Mine is:

15% flat tax on any income over $20,000 and a 1% FEDERAL SALES TAX ON ALL NON-FOOD ITEMS.

No exemptions. No deductions.

Simple..easy...fair.

How I would change Fed and State taxes:

(1) Income:
State: Amendment they 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

(2) Corp tax
State: max state at 2%
Fed:
Three levels a not sure the amount make it Flat progressive alps 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) Medicare/Medicaid and SSN
Keep SSN at current levels but end the other payroll taxes.

(6) Property Taxes
Make a fed law the states can not levy more than 1.5 of current market value of what the home would sell on open market. Each state must set up an independent arbitrator system where the loser must pay the Arbitrator’s fees (can’t exceed $1k).

(7) End defines gov worker pension plans and require replacing with individual plans (aka 401k).

Far too complicated!

What part? I hit taxes at every level


Sent from my iPhone using USMessageBoard.com

A state tax of 2%? My state tax is fairly low and it is 6% now.

I personally believe no state should be able to charge an income or corporate tax, but giving leeway is OK.


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