09-17-2017, 08:06 PM
Ok, tax reform.
I like an income tax. I think there's less abuse than a vat or other type of sales tax. Plus, it's primarily used to support common good (roads, police, military, etc) so it's primarily generated by people using that stuff.
So, first off, simplify to three brackets. 10, 20, 30. Same as now, 10% income tax on lowest, 20% on the middle and 30% on the highest earners. The levels would be much different than now, though, with a mechanism to adjust with inflation. 10%ers would likely be undividuals earning under $40k, or families $100k; 20%ers would be $40,001-$200k or $100,001k to $300k for families. 30% on everything higher.
Second, eliminate almost all deductions.no child credits, no itemized deductions, etc. leave earned income credit there for the absolute poorest. There would be an exception, also, for businesses. They can deduct up to 80% of infrastructure or other improvements or labor training, provided they do not reduce payroll within a calendar year.
Third, eliminate all loopholes. All of them. No deductions because you own a racehorse or a summer house.
Fourth, eliminate estate taxes.
Fifth, tie capital gains to the unemployment rate and inflation rate. Basically the worse the economy, the higher the rate. The better the economy, the lower it goes.
I like an income tax. I think there's less abuse than a vat or other type of sales tax. Plus, it's primarily used to support common good (roads, police, military, etc) so it's primarily generated by people using that stuff.
So, first off, simplify to three brackets. 10, 20, 30. Same as now, 10% income tax on lowest, 20% on the middle and 30% on the highest earners. The levels would be much different than now, though, with a mechanism to adjust with inflation. 10%ers would likely be undividuals earning under $40k, or families $100k; 20%ers would be $40,001-$200k or $100,001k to $300k for families. 30% on everything higher.
Second, eliminate almost all deductions.no child credits, no itemized deductions, etc. leave earned income credit there for the absolute poorest. There would be an exception, also, for businesses. They can deduct up to 80% of infrastructure or other improvements or labor training, provided they do not reduce payroll within a calendar year.
Third, eliminate all loopholes. All of them. No deductions because you own a racehorse or a summer house.
Fourth, eliminate estate taxes.
Fifth, tie capital gains to the unemployment rate and inflation rate. Basically the worse the economy, the higher the rate. The better the economy, the lower it goes.
![[Image: 4CV0TeR.png]](https://i.imgur.com/4CV0TeR.png)
