Posted on 02/13/2016 10:19:42 AM PST by UnwashedPeasant
Historically lowering marginal tax rates have dramatically increases government revenues.
“increased” not increases
Class warfare can be capped by say Constitutionally requiring all income tax above 30% be used to pay down the existing debt (and that refinanced).
What I suggest is three tax levels, 12% [FICA+Medicare+~4%] on all income be used for Social Security, Medicare and (~4% for)food/housing/disability aid. This 12% to be paid by all.
A top-up tax above $25,000/year to finance government as is envisioned in the Constitution [defense, roads, maritime rescue, federal courts/prisons, FBI, etc].
An existing debt pay-off tax on income above $100,000/year.
Flat taxation is not currently possible because zoning and illegal immigration has made housing too expensive and government regulation and patents (that don’t require medical product individual affordability) have made health care too expensive.
The poor simply can’t pay the same tax rates as the middle class and high-income doctors, dentists, lawyers, executives, investors, large licensed contractors and athletes.
“Historically lowering marginal tax rates have dramatically increases government revenues.”
Yes, but it’s been done by Kennedy and Reagan. We are now probably close to the Laffer maximum. Reagan obviously got excellent advice on cutting tax rates.
“that money can’t even come into the nation due to current policies”
[Be aware that in my youth, there was a tax (~44% annually)placed on corporations which held onto earnings instead of using them to pay dividends.]
Obama and the Republican Congress are still running massive deficits.
We could only cut taxes at the corporate level by basically ending special treatment of capital gains.
The nation can’t lose $100 billion/year of corporate income tax revenue unless it makes it up by increasing say capital gains taxation.
Cutting the corporate tax rate to 19% and ending the special treatment of capital gains is probably the proper course.
The tax was called a retained earnings tax.
In Florida there used to be an annual tax (imposed in 1931 I believe) on the value of stock - a real pain in the posterior - I had to look up the official value of each stock on January 1st (I believe).
I think my rate was .6% annually.
Such a tax could be placed at the federal level on the stocks of companies with retained earnings higher than their dividend payments of the past five years.
I’m not a fan of large corporations benefiting from the federal patent system and then dodging federal taxes.
Health care is to high because it is exempt from pretty much every anti monopoly market regulation known. The American citizenry is forced to subsidize drug and device R&D for the rest of the planet. Get the guild socialism, lack of price transparency and differential pricing and reimportation bans out of medicine and the costs would drop to where 95% of issues could be paid out of pocket.
You do know that folks who earn a salary reported to the IRS can't "lie" on their tax forms, because the income is already reported.
The fundamental problem is that you are somehow angry because you have fallen for the line that there are trillions of dollars in funds to be had in rooting out tax cheats. That is an evasion by those who spend more than can reasonably be collected from the taxpyayers.
Although Trump probably does not know this, his tax plan actually reflects how the federal government originally raised revenue.
For example, consider that Thomas Jefferson, himself a wealthy citizen, had noted that rich people uniquely supported the federal government through the taxes that they paid.
”The rich alone use imported articles, and on these alone the whole taxes of the General Government are levied [emphasis added]. . . . Our revenues liberated by the discharge of the public debt, and its surplus applied to canals, roads, schools, etc., the farmer will see his government supported, his children educated, and the face of his country made a paradise by the contributions of the rich alone, without his being called on to spend a cent from his earnings.” - Thomas Jefferson to Thaddeus Kosciusko, 1811.
In fact, note that most of the delegates to the Constitutional Convention were wealthy. So I commend the Founders for committing themselves, and other wealthy citizens, to uniquely paying all taxes necessary to operate the federal government which they established. They put their money where their mouths were.
But more importantly, and unfortunately this has long been forgotten, note that a previous generation of state sovereignty-respecting justices had clarified that Congress is prohibited from appropriating taxes in the name of state power issues, essentially any issue that Congress cannot justify under its constitutional Article I, Section 8-limited powers.
”Congress is not empowered to tax for those purposes which are within the exclusive province of the States.” - Justice John Marshall, Gibbons v. Ogden, 1824.
So although rich citizens uniquely paid the taxes necessary for the federal government to operate, the rich could limit the taxes they paid by policing Congress to make sure that the federal budget complied with Supreme Courts clarification of Congresss limited power to appropriate taxes.
And speaking of the federal budget, Trumps supporters need to get him up to speed with the following rough estimate as to what the federal budget should actually be imo.
From a related thread . . .
Based on the Courts clarification of Congresss limited power to appropriate taxes, here is a rough approximation of how much taxpayers should be paying Congress annually to perform its Section 8-limited power duties.
Given that the plurality of clauses in Section 8 deal with defense, and given that the Department of Defense budget for 2015 was $500+ billion, I will generously round up the $500+ billion figure to $1 trillion (but probably much less) as the annual price tag of the federal government to the taxpayers.
In other words, the corrupt media, including Obama guard dog Fx Noise, should not be reporting multi-trillion dollar annual federal budgets without mentioning the Supreme Courts clarification of Congresss limited power to appropriate taxes in budget discussions.
Remember in November !
When patriots elect Trump, Cruz, or whatever conservative they elect, they need to also elect a new, state sovereignty-respecting Congress that will not only work within its Section 8-limited powers to support the new president, but also protect the states from unconstitutional federal government overreach.
Also, consider that such a Congress would probably be willing to fire state sovereignty-ignoring activist justices.
Cloudmountain, I agree with your sentiment, but it doesn’t negate my point. Being better than Bangladesh, Mexico, Libya or China isn’t what I would use for a yardstick.
I do agree with you; here is still better than anywhere I know of!
I hear him complain a lot but not offer much in the way of solutions or cuts.
Fundamental problem? Lol. I believe that there are tax cheats because of what is reported on the media. How else would I be aware of it? Unreported income DOES exist and the IRS DOESN'T know about it. That also is true.
Nothing "fundamental" about those facts. As Sgt. Friday used to say: "Just the facts."
YOU are assuming, for some peculiar reason that the evasion of taxes paid is by people who SELF-ASSUME that they paid enough to Uncle Sam. The tax bracket one finds oneself is goes across the board. Everyone submits to it. Those who cheat take the risk. THEY are the ones who lose, in the end.
I'm SURE that your recall Al Capone who spent the last years of his life on Alcatraz for NOT paying income tax. If they could get him, they could get anyone.
It’s been so long, I forgot your point. :o)
I was listening to the Larry Kudlow radio show, he is a top financial guy and an economic savant, and he along with two other economic gurus loved the Trump tax plan, lots of praises that Trump’s plan is the ticket for and economic and GDP total recovery and an American decade of prosperity for all of us.
Maybe that’s a good thing. :)
Sometimes it is, but not when I am TRYING to post here.
Thanks for your understanding.
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