1. Eliminate ALL corporate tax.
1a. Eliminate ALL depletion allowances and depreciation allowances.
2. Eliminate ALL current IRS regulations.
3. Set the individual tax rate at 10% regardless of income.
3a. Perquisites at taxed at 10% of cost.
3b. Withhold at the rate of 11%, to get a refund you have to file taxes, but there is no legal imperative to file.
4. Tax ALL money coming into the country at 0% (yes, ZERO%).
5. Tax ALL money leaving the country at 11%.
Nothing is going to change until we get a handle on spending....a genuine balanced budget amendment is the only way to go.!!!!
Nothing is going to change until we get a handle on spending....a genuine balanced budget amendment is the only way to go.!!!!
Interesting tax plan Nully! I have a plan too...
1. Repeal the 16th Amendment (no more income tax).
2. Determine the annual Fed Gov spending total. (actually pick a maximum spending amount).
3. Divide the total among the states and territories using a percent formula (population, consumption, etc.).
4. States decide themselves how to pay.
That’s the general idea. Of course details would have to be hashed out such as emergency spending, penalty for not paying, etc. I believe this would create competition between states and force them to steer back towards Federalism.
Here’s what I’d do:
1. Eliminate all deductions. ALL.
2. Eliminate Corporate tax.
3. Eliminate death taxes.
4. Leave the tax rate for capital gains as is.
5. Exempt whatever amount we determine is up to the poverty line. So say, $20,000 per year is exempt (or some such amount). Now nobody can say we’re crushing the poor. They pay no tax at all until at least reaching the poverty line.
6. tax all regular income above that at a standard flat rate. No fancy tax lawyers or accountants. No economically inefficient tax shelters. Very little time or money spent on compliance costs.
We’d raise at least as much money, the economic distortions caused by tax avoidance strategies would be gone, people getting out of paying hardly anything thanks to having slick tax lawyers and accountants would be gone. We could slash the IRS’s payroll too.