Posted on 08/10/2015 7:13:51 AM PDT by Jack Hydrazine
The biggest opposition is likely to come from the real estate and construction lobbies, who have successfully convinced a lot of Americans that it’s in their best interest to borrow beyond their means to purchase houses because the interest is tax deductible.
Some people are capable of increasing their earnings per year at a higher rate than others. Others not so much.
That’s why we have a individual, free enterprise system.
There is a golden opportunity with tax cuts, that was missed with the Bush tax cuts. It is obvious if you think about it.
Say instead of paying $10,000 in taxes, your taxes are cut so that you only pay $5,000. Instead of having $5,000 more of your own money, it can be mandated that the money go into an untaxed IRA or Individual Health Account. It’s still yours, and still under your control, but it is also to your benefit.
So why do this? So that there is a downgrade and eventually elimination of Medicare and Social Security, the bottomless pits of entitlements. It can be done gradually, so as not to hurt people, but it means that eventually these two money pits will be done.
Congress figured out long ago how to use the Social Security and Medicare FICA tax to double the income tax, and immediately spend money they were *supposed* to save.
They figured out as long as they just paid what was due for that month, everyone would be happy. It was a crude and vicious ripoff of taxpayers.
But this ripoff actually works in the short term, and can be used to get rid of SS and Medicare without screwing their beneficiaries. This is done at first by stopping new enrollees from joining the systems in the first place.
So new enrollees no longer pay the FICA tax, and their paycheck almost doubles. And that extra money goes into their health and retirement accounts, so they don’t seem to gain anything, but they don’t lose anything.
Yet SS and Medicare recipients do not get screwed at all, because they still get their month to month payment of what they are owed, until they die of old age.
This process can be accelerated by offering people who are still working the option of getting the benefits they were due as tax cuts to go into their individual accounts. A *combination* or current tax cuts plus the addition of what they already put into the system. So say they not only get this year’s taxes cut, but they get an additional year’s taxes cut as well, until they are revenue neutral, neither paying in to the government programs nor eventually getting benefits from them — instead getting these benefits from their own accounts.
I almost forgot!
Let’s get rid of all cabinet positions and their associated bureaucracies except for the most essential ones!
Of course that’s true.
But, how does that explain what you asked me?
Nope. How about we move to a consumption tax? The FAIR Tax model (without that silly ‘prebate’ stuff) is the right way to fund government.
He also has been saying that he wanted to separate the Social Security from the general fund...which it is supposed to be.
It would be extremely unpopular with those making under 30K, and many making under 50K. Why? Because the Earned Income Tax Credit puts up to $6000 of money into the pockets of those who haven’t paid taxes to begin with.
A married couple with 3 kids can get some amount from the EITC while making over 40K.
It would also eliminate the child care credit that reimburses thousands of dollars in child care for lower income people. And the education credits. And so on...
Trumps plan would be an economic jump start like this economy has never seen and would increase tax revenues due to economic growth. Even if Trump were to be elected President, this tax plan would never happen. Our Byzantine tax code is the product of Congress (both parties) rewarding friends and punishing enemies via the tax code and they will never give up that power.
One thing I like about Trump’s plan is that even if its only a few bucks everyone has skin in the game.
Any real tax reform to simplify the process will be fiercely fought by CPA’s, H&R Block and all of the other “tax mafia” that benefit from the current complexity. Most “reform” in the past has made it more complex, not less. So I remain less than hopeful... but hey, they talk about it every 2-4 years... the promises resembling those of the Serpent in the Garden.
That’s EXACTLY why we need to get rid of ALL welfare for both individuals and corporations.
Do you know if the businesses would pay on net sales or net profit?
“Years later I’ve been getting these little raises,and a few big ones, and now I’m making $100,000. So, I’m paying $5,000 per year”
The last time I made $100,000 I paid $22,000 in income tax. Trump’s plan seems good.
Eliminate DHS, TSA, Dept of education, EPA, IRS.
Layoff 20% of all nonessential gov. employees.
Just for starters.
Racist because they have to pay something - even a little bit? LOL!
I like your thinking!
Like you said...
“Just for starters.”
I want an army of “Chainsaw Al” accountants to go in and slash every non-essential government service and employee at the federal level as well as the state level to absolute minimums.
Don’t know who Chainsaw Al is?
https://en.wikipedia.org/wiki/Albert_J._Dunlap
Albert John Dunlap (born July 26, 1937[1]) is a retired corporate executive. He was best known as a turnaround specialist and professional downsizer. The ruthless methods he employed to streamline failing companies, most notably Scott Paper, won him the nicknames “Chainsaw Al” and “Rambo in Pinstripes”. However, his reputation was ruined after he engineered a massive accounting scandal at Sunbeam-Oster.
I hope Trump reads FR or at least one of his staff does.
That would never fly today, with all the bloat in the federal government, they need to rob us all to pay for it.
As Michele Bachmann said, "Even if it's only one dollar."
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