Personal income tax
1. An initial earned income (wages and pensions) exemption of:
$15,000 for single
$30,000 for married/registered domestic couple
$22,500 for legal single head of household
$10,000 for each legal dependent in household
In short, a family of two adults and two children will have its first $50,000 of initial earned income exempted from the income tax.
2. All income above the exemption amounts will be taxed at a flat rate of 18.75 percent.
3. Eliminate the alternate minimum tax, estate tax, FICA tax for Social Security, gift tax and marriage penalty tax.
4. Bank account interest, capital gains and stock dividends are not longer subject to taxation (e.g., they are not counted towards the inital earned income computation).
Business income tax
1. Income taxed at a flat rate somewhere around 11 to 13 percent.
2. Plant equipment can be depreciated within one year of purchase.
The result of such a flat tax would save Americans something like 75 percent of the current US$1 TRILLION in per year compliance and economic opportunity costs the current system imposes on the general economy. And it would effectively bring back to the USA something like $15 TRILLION in American-owned liquid assets now sitting in non-US financial institutions for tax avoidance reasons, meaning a gigantic liquidity boost that would immediately kick start the US economy. And it also means saving Medicare and Social Security, since people can now create their own private nest eggs for retirement and medical costs without that nest egg being subject to taxation, so future generations will have far less dependence on Social Security and Medicare.
So what are we waiting for?
Hey RayChuang88,
Not wanting to derail this thread so reply on FReepmail if so desired... I would like to know if your outline above is revenue neutral (first year), how ss benefits will be paid, and why business income tax is in the outline?
Thanks-
We are waiting for a way to make congress exempt
NO!!!!
As long as there is an income tax, the “progressive” income tax will come back.
We MUST repeal the 16th Amendment.