Posted on 10/03/2014 3:26:55 PM PDT by SeekAndFind
The Republican Party has become the party of ideas again. You can see it in the new tax reform plan put out by Tea Party Sens. Mike Lee (Utah) and Marco Rubio (Fla.).
Their plan would simplify the income tax system, setting just two rates: 15 percent and 35 percent. More importantly, it would add a $2,500 child tax credit, refundable against both income and payroll taxes, to the existing $1,000 child tax credit. This means that even families that don't pay income taxes, but do pay payroll taxes (i.e. families who work), would benefit from the tax credit.
The plan also reforms corporate income taxes. The details are a bit too complex to get into here, but as Reihan Salam explains, this part is also very clever and well thought out, and would address the problem of crony capitalism.
Now, why is any of this a big deal?
It's a big deal, first of all, from a political perspective. Here are two Tea Party senators, one of whom is thought to be a strong candidate for the GOP's presidential nomination, saying that the Republican Party should stop focusing on cutting top income tax rates and instead focus on helping middle-class families. The plan cuts tax rates a little bit, but most of its "bang" is for middle-class families.
It's very important for the GOP to realize that the way to national electoral success is to be seen as on the side of the middle class. And that starts with bread-and-butter issues like taxes.
But Rubio and Lee's tax plan is also a big deal because expanding the child tax credit tackles a whole set of interlocking issues that are plaguing the country and, unlike heavy-handed progressive solutions, does so in a smart way.
(Excerpt) Read more at theweek.com ...
The plan is junk. Rates are too high.
When does Rubio’s amnesty plan kick in?
Are you saying that Mike Lee has been duped and he can’t think for himself?
If 10% is good enough for God, it is good enough for the government.
10% true flat income tax. Nobody gets any credits, deductions, loopholes, exemptions - NOTHING. No EITC. Not a dime back from Uncle Sam. Everyone pays the same 10% rate, from a homeless bum to Bill Gates.
I agree; this plan would also virtually eliminate the IRS's ability to do political targeting.
Most beneficiaries will be Mexican. Giving them $2,500 per child is obscene. Those who do pay income taxes make more money with the child credit rip off than they make working.
Yet another way to let the bottom 50% pay no taxes. It also turns Social Security into yet another Welfare program.
Rubio quit being a “Tea-Party Senator” when he supported Amnesty.
I know, but that doesn’t mean all of his ideas are now useless.
They have to be taken and analyzed on a case by case basis.
RE: In short: the plan is crap.
OK, let’s say you are tasked with designing a tax plan, what would it be?
There wouldn’t even be a need for the IRS. A 3-month seasonal staff of existing employees from Treasury would simply collect the taxes and be done by the end of March.
RE: 10% true flat income tax. Nobody gets any credits, deductions, loopholes, exemptions - NOTHING. No EITC. Not a dime back from Uncle Sam. Everyone pays the same 10% rate, from a homeless bum to Bill Gates.
So a $100 earner pays $10 in taxes
.....
a $10,000 earner pays $1,000 in taxes,
A $20,000 pays $2,000 in taxes
A $30,000 pays $3,000 in taxes
etc. etc.
A $100,000 pays $10,000 in taxes
..............
A $1,000,000 earner pays $100,000 in taxes
And a $1,000,000,000 earner pays $100,000,000 in taxes?
RE: I agree; this plan would also virtually eliminate the IRS’s ability to do political targeting.
Ahhh, but still, you have to answer this one question to the IRS =— WHAT IS INCOME?
This plan still retains the IRS’ power to snoop on you.
A Constitutional Amendment:
Tax Reform Amendment |
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Section I No tax, federal or state, shall ever be withheld from the wages of a worker of any citizen of either. Section II No property shall be seized for failure to pay taxes until after conviction in a jury trial; the right of the jury to nullify (and thereby forgive) this debt shall never be questioned or denied. Section III The second amendment is hereby recognized as restricting the power of taxation, both federal and state, therefore no tax (or fine) shall be laid upon munitions or the sale thereof. Section IV The seventh amendment is also hereby recognized, and nothing in this amendment shall restrict the right of a citizen to seek civil redress. Section V No income tax levied by the federal government, the several States, or any subdivision of either shall ever exceed 10%. Section VI No income tax levied by the federal government, the several States, or any subdivision of either shall ever apply varying rates to those in its jurisdiction. Section VII No retroactive or ex post facto tax (or fee) shall ever be valid. Section VIII The congress may not delegate the creation of any tax or fine in any way. Section IX No federal employee, representative, senator, judge, justice or agent shall ever be exempt from any tax, fine, or fee by virtue of their position. Section X Any federal employee, representative, senator, judge, justice or agent violating this amendment, attempting to violate it, or otherwise causing the application of an ex post facto, retrospective, or retroactive law, tax, or fine shall, upon conviction, be evicted from office and all retirement benefits forfeit. |
Now, we could get some good stuff done without a constitutional amendment, but the problem is that such would be alterable by normal legislative methods. The Constitutional amendment, on the other hand, is something which requires a fair amount of support. Some benefits of this particular plan: there are caps on the rates governments can impose, it forbids property taking w/o jury trial, it cuts off the powers of the GCA/NFA [gun control], it forbids progressive taxation, it forces congress to abide by the same taxes/fines as the rest of us, and it imposes certain punishment for agents of the state who violate it.
Not only junk, it denies the childless equal protection under the law. My wife and I are childless; where is my $2500.?? Gimmedat!
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