A Real Tax Plan without input from Lobbyists.
Loopholes, and give-a-ways are the reason why the US Tax rate is as high as it is. Lobbyists have the access to our elected officials, and the money to line their pockets.
Lobbyists use their money to influence politicians to create tax policy that benefits their causes. If you look at the Tax Code, it’s riddled with tax exemptions to boost certain industries, purchases, behaviors and causes.
Here is another simple solution to a complex problem. A Tax system works best when everyone has “A little Skin in The Game”. Also keep in mind the amount of money and time wasted just to prepare and file your taxes. This is also a tax unto itself. Here is my Second gift to the Republicans.
1. Scrap the whole tax code. Let’s start fresh.
2. Go back to a system of States rights. Hence, any powers not granted to the Federal Government, by the Constitution, are given to the states.
3. Pass a law requiring the Federal Government must run a balanced budget. The Federal government may only go into deficit spending in times of National Emergency, or War.
a. All tax payer dollars spent over the budget, can only be used to address the National Emergency, or War.
b. All Emergency deficit spending must be approved by the House of Representatives, and must be reapproved every year.
c. After the 4th year of Emergency deficit spending, it must go to a national vote and must be approved by the majority of states.
4. Implement a 17% Federal Income Tax rate for everyone, no matter how much you earn. This tax rate would apply to personal income, business profits, & interest earned. This will go to fund all Constitutional powers granted to the federal government.
a. When starting a new business, you may deduct your losses for the first 7 years. After that, the deduction goes away.
b. Money, property, and assets obtained by inheritance, is tax exempt. All income made by the sale of property, and assets obtained by inheritance will be taxed at the 17% Federal income tax rate.
c. Sales of your Primary residence will be tax free, as long as another Primary residence is purchased within 1 year. The home owner must keep the home as their Primary residence for 3 years. If the owner sells their new home within 3 years, a 17% income tax will be collected for all profits made on the sale of the home. All home sales will be exempt from all Federal sales tax.
5. Implement a 3% Federal Sales tax. 1% of this tax will be used for National Infrastructure projects, and repairs. 2% of this tax will go to all other government spending. This included the President, Congress, Congressional & Executive level staffing. As the economy does better, and more money is spent, the more services the Government can offer. As the economy weakness, the Federal government would have to tighten the belt, just like every American household. If any shortfalls happen in the Federal Income tax, money will be taken from this fund to cover the shortfall.
6. Any changes Up or Down to these tax rates, must be part of a national vote, and would require approval by a majority of States. So, if 26 states vote for the tax rate change, the tax rate change goes into effect the next calendar year.
a. The change in the tax rate will take effect for 2 years, and must be reapproved before it continues. Congress will have the ability to approve a 1 time 2-year expansion, without a national vote. After that, it must go back to a national vote.
b. Any changes to the base rate of 17% and 3% would have to approved by a 2/3 states majority of a national vote.
c. Any changes or additional to the few Tax exemptions must be approved by a 2/3 states majority of a national vote.
This plan would be a tax cut & increase both at the same time. If you adjust the current tax rates (including income, Social Security, & Medicare/Medicaid), to account for deductions and loopholes, a middle-class family pays an average of 25.1% in Federal income taxes. If you do the same thing for the wealth (the top 1%), they pay on average 13.7%.
Designing a tax code that is difficult to change, will force the US Government to live within its means. Also, this will make the job of the Lobbyists difficult to influence politicians to design a tax policy to favor their causes.
This tax code leaves only one blaring problem………What to do with most of the IRS employees.
Written and Posted By Nick Pags
