The "10% Flex" Tax plan, a novel idea for Taxes and Tariffs ~ Vanity

GraceG

[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.

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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 )

[going hot]

if so, then employees would have 7 % ss, and only room for another 3% in any combination?
I like!
Now, employers currently pay the entire 15.% ss. so...do they get it reduced by 5 % to get it under ten?

[TheNext]

The Tariff is the ONLY tax that helps America as Democrats raise it higher.

All other taxes destroy America as Congress raises it higher. The debate is over.

If a sector is harmed by Trump tariffs, blame the other high taxes.

#TariffGood #NativeTaxBad

[GraceG]

[ The Tariff is the only Conservative tax.

Ban all other taxes is original America.

You taxers are all flaming liberals. ]

1% - 10% Tariff and nothing else

My plan support a Tariff only, if you would like it that way.

[GraceG]

[ if so, then employees would have 7 % ss, and only room for another 3% in any combination?
I like!
Now, employers currently pay the entire 15.% ss. so...do they get it reduced by 5 % to get it under ten? ]

All total percentages combined cannot exceed 10% and must be in 1% increments. If they could get the total cumulative under 5% they could do that as well.

[Secret Agent Man]

Unfortunately without a severe massive upheaval of the current systemmit will not occur.

There is no upside for any of the current flotsam to do this. Therefore they will not.

When in your lifetime has fedgov given any real power back to the people. I cannot think of any.

[kvanbrunt2]

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?>>>> that is a description of a vat. national sales tax would be retail only

[PGR88]

Well done. Thinking outside the box.

I have always believed FLAT taxes are the way to go. No deductions, easy to calculate and plan for.

Our present tax code is a source of great corruption - everyone angling for a special break, credit or rebate. Absolutely none of that with a flat tax. Helps greatly to limit corporate cronyism and political corruption. Moreover, IRS can’t be used as a political weapon, as they are now in our highly complex tax regime.

[TexasKamaAina]

I think it was Walter Williams who said that when people start debating the form of taxation the real problem is excessive taxation. Nobody really cares much about how taxes are collected until they become excessive.

[semimojo]

I appreciate the concept but I think you're mixing up a few things.

They question is 10% of what? Income? Sales? Value of imported goods?

A 10% income tax will bring in a very different amount of revenue than a 10% sales tax.

I like the effort but I think you need to work on the definitions a little.

[nitzy]

The issue that I see with this is that it would quickly devolve into a 10% tax of whichever category was the largest.

For example if we do $500B in imports, we have $1T in personal income, we have $2T in business income and $4T in total national sales.....Congress would quickly settle on a 10% sales tax.

Why mess around with 2% of $1T or 4% of $500B when you can cut to the chase and just take 10% of $4T.

I am just making these numbers up but certainly there will be some differences in the total amounts of the 4 categories. It would take a few seconds for congress to figure out which category was largest and tax it at 10%.