Nobody Gets Email: Tom's Tax Ideas
This week I was sent these ideas by a guy named
Tom. (The picture was mine...it sort of expresses how I feel about the subjest...taxes.)
Anyway, Tom has some exciting ideas that he wants to share with everyone, (about taxes) and he certainly is much smarter that I am when it comes to figuring out this stuff...my opinion being "cut them by at least 75 percent."
He makes a good start...good job!
Anyway, enjoy Tom's idea! And be sure and tell him what you think.
1. All persons residing in the U.S. shall come together in units for the purpose of reporting all income from any source, each item to be identified by payer's and payee's tax number. Members of a unit need not be related, need not reside together, and a unit may consist of as few as one person. With equality as the primary goal, this act established units to be taxed, so that all persons, whether related or not, legally here or not, are taxed equally.
2. Each year congress shall set by legislation a "minimum wage" and a "tax rate".
3. The following income shall not be subject to taxation:
An amount equal to a year's earnings at the minimum wage rate, for each adult (age 20-65) member of the unit, decreasing 10% per year to 50% at age 15 and increasing 10% per year to 150% at age 70. (Family of two adults and two young children would receive exemptions equaling 100% + 100% + 50% + 50% = 300% minimum wage, currently about $42,000)
All payments for what is classified as necessary health care for all members of the unit including medical care, any pharmaceuticals prescribed by a recognized health care professional, vision and hearing aids, and membership fees for health-enhancing entities such as gyms or other exercise facilities. Health care insurance premiums may be deducted but not health care expense paid for by such insurance.
All educational expenses including day care for young children or legally incompetent persons, that portion of state and local taxes identified as spent on education, that portion of parochial school tuition, fees and other expenses identified as going for non-sectarian education, tuition, fees and educational materials for private school education at any level, and a per-diem allowance for students traveling more than 50 miles from primary residence for education.
All income saved into an identified account from which investments may be made.
This encourages growth of the tax base, thus growth of the government's ability to pay for its responsibilities, by fostering health care, education and investment, all of which contribute to growth of income, taxable to support legitimate government purposes.
4. The "tax rate" shall be applied to any income over and above the deductions listed above, regardless of amount. It seeks the elusive concept of fairness by taxing at the same rate all "disposable" income.
5. There shall be no federal tax on corporations or other business entities. Products made in the USA will be more competitive in the world market by eliminating taxes as part of their cost All taxes will be directly, and transparently imposed on those who have always paid them, the consumer. (EXCELLENT!)
6. The Office of Management and Budget shall compute revenues to be expected using the newly set tax rate and minimum wage, applied to the previous year's reported incomes. No expenses in excess of that amount may be authorized or made by the federal government without approval by 75% of each house of Congress. It sets the Federal budget to produce a surplus in times of economic expansion and a deficit in times of contraction to promote economic stability.
7. At the request, by legislation duly enacted by a municipality having greater than 100,000 inhabitants or a state, a surtax may be imposed on citizens of that municipality or state which shall be applied in a manner exactly as applied for the Federal tax. It recognizes disparity in cost of living among various locations. It facilitates sufficient sources of revenue for states and municipalities.
8. For units whose deductions exceed total income, the Federal Government shall make payment equal to the tax rate multiplied by the shortfall in income, as shall municipalities and states. This addresses aid to the truly needy.
I would expect a tax rate in the neighborhood of 35-40%. Consider how it would affect your behavior, motivating you to save for retirement, and how it would, by exempting from this high rate, encourage spending on health care and education.
Your suggestions sincerely requested. E-mail them to firstname.lastname@example.org.