Posted on 08/11/2015 6:05:11 AM PDT by Hojczyk
But P-Marlowe, look at the original income tax of 1913, which “got through Congress.” It was exactly what he’s proposing. One page, lowest rate then was 1/2%, highest 6%. Even if you bump it up to post WW I levels of 5% and 25%, people would turn cartwheels.
As good a plan as any I’ve come up with (not that I’m a tax lawyer).
But something meaningful has got to be done. Especially since the tyrants have shown us they have no qualms about using the heavy hand of the IRS for political purposes.
Apparently a Republican controlled Congress can’t seem to put a criminal like Lerner in jail, much less reign in the IRS, so this is the next best thing.
* No Fair Tax, Flat Tax yes as an alternative to the current system and get rid of the current system when adoption is at a high percentage. It won't pass Congress any other way.
* One gnome a CPA says they are fine with a Flat Tax, they will shift their practice to helping small businesses with their accounting and making money.
It is all good, we just need a candidate ( Trump?, Cruz, Walker, Carlie? ) with the cohones to make it priority in the 1st 100 days...
I like the 1% 5% 10% 15% plan Trump has. Everbody has some skin in the game.
Brain surgery or rocket science.
In the end, Congress has zero incentive to change the tax code. It’s the greatest legalized bribery racket in US history. “I will donate to your reelection campaign if you create this tax loophole for me”
Someone had a 3 rate ‘flat tax’ a few years ago (Forbes, maybe), and it was still called a flat tax.
His plan in 2011 was a 4 rate ‘flat tax’:
•Up to $30,000 of taxable income: 1%
•From $30,000 to $100,000: 5%
•From $100,000 to $1 million: 10%
•On $1 million or above: 15%
I like it far better than a straight flat tax, because 10% of a poor man’s budget is a potential deal breaker. In this plan, 15% of a millionaire’s income is not a burden at all.
That said, I would see the entire budget as spent as being funded by this tax, so SSN and Med be ended as separate line items and incorporated in the above tax plan. It might force 2%, 10%, 20%, 30%, but none of those are crippling, and especially if the payroll taxes are removed as separate items, given that they were approximately a 7% bite out of every paycheck.
I also think it’s wise to have EVERY American with skin in the game.
CORRECTION - SEE CAPS BELOW
Someone had a 3 rate ‘flat tax’ a few years ago (Forbes, maybe), and it was still called a flat tax.
TRUMP’S plan in 2011 was a 4 rate ‘flat tax’:
•Up to $30,000 of taxable income: 1%
•From $30,000 to $100,000: 5%
•From $100,000 to $1 million: 10%
•On $1 million or above: 15%
I like it far better than a straight flat tax, because 10% of a poor man’s budget is a potential deal breaker. In this plan, 15% of a millionaire’s income is not a burden at all.
That said, I would see the entire budget as spent as being funded by this tax, so SSN and Med be ended as separate line items and incorporated in the above tax plan. It might force 2%, 10%, 20%, 30%, but none of those are crippling, and especially if the payroll taxes are removed as separate items, given that they were approximately a 7% bite out of every paycheck.
I also think it’s wise to have EVERY American with skin in the game.
When it comes down to a competition I always reveal the entire contents of my strategy to the opposition in order for them to have as long as possible to undermine and defeat my goals.
If a president Trump attacks the tax code, and the anti-business regulations that have been put in place since the GHWB administration, you are going to see American business grow like you haven’t seen since the Reagan years.
I would love to see a return to the 80s. I am in my late 50s, and the best time of my life was during the Reagan years.
I want to live it again!
As I was reading different posts this morning, one guy said he doesn’t read. If it’s not on twitter he doesn’t basically need to know...
Is this what this country is coming to?
I have read 6 of Trumps book, that guy is brilliant, and he wrote them BEFORE this year....he is really good at being a businessman...
Good post.
Given that Trump would also eliminate business taxes, inheritance taxes, and capital gains taxes, and you believe that Social Security taxes and Medicare taxes can also be eliminated, then you must think that this tax structure will generate upwards of $4 trillion? What do you base that on?
I would like to see it as a flat 10% for all, but this will work, too. With all having skin in the game tends to help unify people.
Only a national sales tax actually holds the government to account and encourages prosperity. If the economy is thriving, the government gets the big bucks. If it’s tanking, the feds have to do with less. Thus, it’s in the government’s best interest to be VERY business-friendly. It’s also the only tax where literally everyone who spends even a dollar has “skin in the game.”
It’s the fairest of taxes as well. If I’m flush enough to buy a Maserati, I’m paying more tax than the guy who can only afford a used Chevy.
and how to implement it? Just assign another button on the cash register.
Yes, I support fair tax, too. I just don’t expect to see it in my lifetime.
Any tax system based on income, regardless of rates, is not enforcable in America as it presently exist. Voluntary compliance is declining every year and the underground economy is overtaking the official economy. A fast growing number of individual and businesses have discovered that the rewards for non compliance are greater than the penalities. Rates can not be set high enough to compensate for avoidance and can not be set low enough to gain universal compliance. Like it or not, we are in a new world and a tax system designed for a primarily wage based economy is no longer able to generate the necessary income.
The income tax does allow for a high degree of control by the political class and as long as government has unlimited ability to borrow, the desire for control will remain more important than the need for revenue.
2013 total household income was about 7.8 trillion.
About 500 billion of fed budget is borrowed, so 3.5 trillion remains
About 18% of fed budget is from non-household sources, so 2.8 trillion remains to be collected from income tax sources.
Trump will also increase tariffs, so we’re talking approx. 2 trillion to fund from household income taxes.
That’s 25% of the 7.8 in household income which is not evenly distributed given that the top 10% currently pay 68% of taxes. The following chart is close.
•Up to $30,000 of taxable income: 2%
•From $30,000 to $100,000: 10%
•From $100,000 to $1 million: 20%
•On $1 million or above: 30%
No real Conservative should defend any form of the income tax. Consumption based taxes and tariffs are Conservative tax plans.
You can do that, but thanks to “progressives” that stuff is still hard-wired into the constitution.
You only have one opportunity to truly blind side some one.
Kelly, Baer and Wallace wasted theirs.
I am not a fan of the “gotcha” type of questions, but you can get very interesting reads on people if you can catch them off balance.
If they had come at him with something of substance that he wasn’t prepared for, they could have done us all a service. As it is, Trump now knows he can never relax. We can never get that unobstructed peek at Trump the man.
If they had even asked for details on how he expects to have Mexico pay for the fence along our southern border, they would have gotten far more than what they ended up with.
Which was egg on their faces.
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