Skip to comments.The "10% Flex" Tax plan, a novel idea for Taxes and Tariffs ~ Vanity
Posted on 05/24/2016 6:04:51 PM PDT by GraceG
When it comes to taxes, depending on whichever conservative you talk to they all have a different idea on what sort of tax plan would work best. Some want a national sales Tax, some want an income tax, and some even want a Tariff. So why not UNIFY under a plan that ALL of us can get behind? Here is an idea that I have been thinking about that i have never seen before.
I call it the "10% Flex" Tax plan. Why is it flexible? It is flexible as it would allow congress to control what TYPE of taxes could be collected, However it would place several fundamental limits on taxes collected by the federal government. It would be something that would replace the 16th amendment with better fundamental limits on how all future taxes would be collected.
Here are the 7 main points and Rules behind such a Federal Tax scheme:
1. The total Cumulative percentage of all Federal Taxes is Limited to 10%. this mean that If we had a 5% Income Tax and wanted to add a Tariff, that tariff could never exceed 5%. If they wanted to add a National Sales Tax they would have to lower the Income Tax and tariff to ensure that the percentages ass up to no more than 10%. The total cumulative tax "window" percentage would only be allowed to range between 0% and 10%.
2. There may only be 4 main categories of Federal Taxes, ( Income Tax, National Sales Tax, Business Tax, and Tariffs)
3. Each one of categories is required to be FLAT, as in if there is a National Sales Tax it must apply to all items domestically sold, or if there is an income tax it must be applied to ALL People and All forms of income, All business Tax must apply to all businesses even if a non-profit, and any Tariff must be flat as in it has to apply to both imports and exports all countries and all products.
4. The category may be split, but they cannot exceed their percentage of Tax from their main category, and they can only be split into 2 subcategories. And the smallest increment percentage wise for splitting would be 1%. If you wish to "Split" A category down, say you want a Flat income tax of 8% but want to take people who make over 100,000 and tax them more, you will have to take that 8% and tax everyone who makes less than $100,000 at 2% and everyone above at 6%.
Example: 2% Tariff, 8% income Tax ( 2% below 100K, 6% above 100K ) - cumulative total = 10%
5. The total Federal Tax Cumulative percentage shall not exceed 10% unless the United States in a state of "Constitutionally declared WAR". Even then it shall be Limited to 20%. The following conditions shall apply to the this tax code. A formal declaration of WAR should be declared with at least a 3/4ths vote in both houses and shall need to be renewed on every year in over to keep extend the limit to 20%. If the declaration of war is not renewed within a year of the last declaration the Tax limit shall be reduced back down to 10% for the next calendar year.
6. The Only power Congress shall have will be to determine the Percentages of the tax types and determine how to split once each of the existing 4 categories for the rare exceptions that may crop up.
For instance say your current play is this:
2% Tariff, 6% Income Tax, 1% business Tax, and 1% Tariff
But we want to put a sizeable Tariff on say China. So Congress can ONLY do this:
We want to put a 4% Tariff on China While maintaining the 2% Tariff on countries that are not China.
6% Tariff (Split - 4% Tariff on Chinese goods, 2% Tariff on all other countries.) 2% Income Tax, 1% Sales Tax, 1% Business Tax.
7. Any category that is Split shall not apply to both elements within that category. Say the Income tax is 5% and you have a 2-3 percentage split between those making less than 250k vs more than 250k. If someone makes 1 million bucks, they get taxed on their WHOLE 1 million at 3%, NOT 2% on 250K and 3% on 750K. Any SPLIT within the category Income, Sales, Business, Tax or Tariff that applies to one person or individual or product or country cannot have the other split apply it as well.
So that pretty much sums it up. I agree it is a bit confusing, and I am not sure about keeping the "SPLIT" option in it or not.
So here are the following tax plans that would be LEGAL under this IDEA.
10% Income Tax, no other taxes.
10% Sales Tax, no other taxes.
10% Income Tax, [ 3% under 50K, 7% over 50K ]
3% Income Tax, [ 1% under 30k, 2% over 30k ] 3% Tariff [ 2% on china , 1% everyone else ] 3% Business Tax [ 1% under 5mil, 2% over 5mill ] 2% National sales Tax.
(The Last example being the absolute limit to how COMPLEX it could ever be )
Nice idea. Obviously the control is the 10%. I don’t like income tax because it has evolved into a wage. Tax in the end if you’re government is lawless you pretty much just suck it up.
No one currently in dc wants their tax power limited.
To wit, look how many people currently there are proposing to limit their taxation power. Zero.
I’m going to disagree, but not without first commending you for your effort - you’ve given a lot of thought to this and it shows.
IMHO, though, the only tax should be sales tax, at the time of purchase. So revenues go up when the laws are beneficial, and down when they harm the country. And nothing is hanging over anyone’s head. Given that, I like your 10% total - I’d apply it across fed, state, county and municipal as a total.
Rather, I’d DISTRIBUTE it as a total.
It's up to the people to limit taxes through electing proper representatives on the issue.
I assume businesses would also be exposed to the national sales tax. Wouldn’t levying a business tax on top of that be double taxation?
[ Nice idea. Obviously the control is the 10%. I dont like income tax because it has evolved into a wage. Tax in the end if youre government is lawless you pretty much just suck it up. ]
I figure that we give the congress a job finding out what the optimal percentages are for maximum income for the government, I figure it would take them a few thousand years to try to figure that out. It would be like handing congress one of those brain teaser puzzles.
And the best part is that the maximum impact on our economy is limited to 10% MAX.
Sure they can carve out exceptions, but they can only carve one out per category and that is it.
We could carve out a 0% Tariff for countries like Canada and Poland, while having a 2% Tariff on all the others, but it would be only one exception, the other countries out there would WANT to get into that exception by treating us well.
We could carve out a 0% exception for low income individuals.
We could have a National Sales tax of 3% for items more than $500,000, by spluittting the National Sales Tax of 3% into [ 0% and 3% ]
so it has a LOT of flexibility, but it is limited to total percentage of 10%
The only exception being a constant and super-majority declared State of WAR! And then it only DOUBLES and if the War is not renewed by same criteria on a yearly basis it goes away.
10% income tax for everyone. Collect all the money from everyone and give it to the bottom earners-creating a minimum income. Prove thru paycheck stubs that one has worked 40 hrs/wk to participate. Get rid of all programs. Corporate taxes(separate) to pay for defense ONLY.
I want FEWER and LOWER.
[ Im going to disagree, but not without first commending you for your effort - youve given a lot of thought to this and it shows.
IMHO, though, the only tax should be sales tax, at the time of purchase. So revenues go up when the laws are beneficial, and down when they harm the country. And nothing is hanging over anyones head. Given that, I like your 10% total - Id apply it across fed, state, county and municipal as a total. ]
This is only a BASIC STRICT FRAMEWORK, you could have Only a 8% Sales tax and no other taxes with this plan. 10% is the limit but not the rule.
I think a framework like this may have the best “chance of success” in that it could support Taxes like the FLAT income or the Fair Sales tax under the basic framework.
[ No one currently in dc wants their tax power limited. To wit, look how many people currently there are proposing to limit their taxation power. Zero.
It’s up to the people to limit taxes through electing proper representatives on the issue. ]
Or getting enough states together to article V this in the form of an amendment down the DC establishment’s fat throat :)
[ I want FEWER and LOWER. ]
Even the worst case scenario under my framework would be Light Years above and beyond BETTER than our current system!
[ 10% income tax for everyone. Collect all the money from everyone and give it to the bottom earners-creating a minimum income. Prove thru paycheck stubs that one has worked 40 hrs/wk to participate. Get rid of all programs. Corporate taxes(separate) to pay for defense ONLY. ]
You could do that with my plan. but you would have to cut the 10% income down a bit, maybe 8% income 2% biz for defense tax?
or a 5-5 split...
what about ss?
What about employers who pay the whole 15.2% ss as well as 50% of the employee ss?
[ I assume businesses would also be exposed to the national sales tax. Wouldnt levying a business tax on top of that be double taxation? ]
If you ran an import/export business you could theoretically be quadruple taxed...
Your max would only be 10% though.
You could have a 2-2-2-4(income tax) and be taxed on the income from your business, 2% on your biz, 2% on a item you buy from china and 2% if you buy it from your own business.
SO being in the import/export biz would be one job that would be “worse” than others, but with the other taxes being low, business would be booming anyways.
But that is only in the worst case under this framework and probably a hell of a lot less than you are currently being taxed.
[ what about ss?
What about employers who pay the whole 15.2% ss as well as 50% of the employee ss? ]
It would either be under the flat income tax or the flat business tax.
While you are at it can you get public civil service types to fund their own pensions?
Better yet. Get them to fund mine.
The Tariff is the only Conservative tax.
Ban all other taxes is original America.
You taxers are all flaming liberals.
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