Trump needs to blast through the fray with a trumpet blast like Joshua.
He needs to submit the basics. Not let the sell-out leadership whores screw it up.
Let’s make this simple as pie.
- Nobody pays any taxes until their earnings exceed $150,000 ($200,000 for couples)
Done. In the bag. Ba-da-bing. Why? Because until you have SUCCESS, you shouldn’t be part of the tax system.
Deductions: We should allow only four:
- State Taxes.
- Mortgage Interest (this is historical and people are already tied in, so it’s unfair to take it away)
- Charity Gifts and Donations. No limits. No qualifications.
- Medical Expenses including Health Insurance. No limits. No qualifications.
Sorry no Elon Musk Rat cars, no alligator farming in New Jersey.
Also no estate (death) taxes. No AMT taxes.
So what is the tax rate? How about 25%. Only on the earnings above 150,000. (or 200k). You see the objections to a flat tax rate were always it was too burdensome on the poor. But with the initial exclusion of the first 150,000 in income, that is no longer the case.
Note that currently the top 1% pay on average 27.1% tax rate. So its a mild break for them, but not much.
What about the rich having tax shelters? It’s all gone. They finally have to pay taxes.
Now let’s get on to corporate taxes.
- All corporations pay a 20% tax on all profits
- Corporations may deduct their expenses and research and development costs from income to derive their net profit
- HOWEVER, all corporations with sales above $10M must pay the larger of their standard tax calculation OR 5% of Gross Sales, whichever is LARGER.
You see, huge companies like GE, and Amazon for many years paid ZERO in taxes. For large companies we can no longer let them loop hole out of paying anything. You have to pony up at least 5%. Thats fair.
And what about the trillians offshore? How about a special 15% tax rate to onboard it, providing it goes into (the majority of it) into new factory construction or other activities which would create jobs, and they would have to submit a plan on how they are spending the money and it would get an approval from the government. Otherwise, they might just do a stock buyback and walk away with big bonuses. Uhm, no.
To BALANCE this, we will need to shift our revenue sources. We should have a standard 10% security fee on all imports. This will give our american producers some competitive advantage. Our imports stand at around 2.8 trillion a year. So 10% would be 280 billion. A good offset.
But we need more. The financial action tax of 0.5% on all financial transactions such as stock and option buying would produce 225 billion in revenue a year. Adding option trades and others would double that.
So the new taxes would bring in 800 billion a year,
All of this takes the burden off the middle class and puts it more on the high earners. Can you say bankers?
Sadly, the current plans being bandied about do nothing at all. sick.