My ideas for tax reform

My bad self | October 23, 2017 | Me

[Tolerance Sucks Rocks]

Greetings all:

Here are my ideas for tax reform:

1. Two brackets: 15% and 28% (instead of 12% and 25%), with said 15% bracket covering an amount of income equal to that taxed for Social Security (2X that for married couples and 1.5X that for head of household). There would be no higher 3rd, 4th or 5th brackets.
2. Standard deduction of $12,000 ($24,000 for married couples, $18,000 for head of household), but keeping the personal and dependent exemptions (currently $4,050 apiece), with dependents including all dependents, not just children.
3. Get rid of ALL deductions and credits, except for charitable giving and EMP preparedness spending, which would be added to the standard deductions and exemptions, rather than being itemized alternatives. The first $18,000 of 401(k) contributions would also remain tax free (as opposed to House proposal of $2,400).
4. Corporate AND pass-through tax rate of 20%, with permanent, immediate and full expensing for equipment, infrastructure and EMP preparedness. All other deductions and credits would be eliminated.
5. Elimination of all remaining Obamacare taxes.
6. Capital gains and dividend rates of 15% (down from current rates of 23.8% and 42.3%, respectively).
7. All income and repatriated moneys from outside the U.S., individual and corporate taxed at only 5%.
8. Inheritance tax of 5% (down from 45%), keeping the same $5M exemption ($10M for married couples), and have $7.5M exemption for head of household.
9. 5% general tariff where allowed by trade agreements, instead of the current complex schedule of over 20,000 different tariffs.
10. Tax of only 5% on social security.
11. Nowhere in the bill will it be mentioned that current deductions and credits are being eliminated in order to "pay for" the tax cuts. That would assume that our own money is actually the government's to spend as it wishes, and that's not the idea here. The idea is simplification and keeping more of our own money.

That WILL make America great again!

[Tolerance Sucks Rocks]

Flame away! :-D

[Tolerance Sucks Rocks]

Combined General and Maryland “Freak State” PING!

[freedumb2003]

One bracket: 12%

No deductions, exemptions or anything else other than DIRECT costs for companies.

Done.

[cyclotic]

I like the tax credit for all dependents. Our kids are all adults but two are still dependents. Now is when they get expensive, school, car insurance etc. When they were young, food was the only real cost.

The older two moved out on their own, yet when they tried to get student loans, it was still predicated almost solely on our income, not theirs, even though at that point, about the only think I paid for was their cell bill. If they want to play that game, tax credits should play along.

[central_va]

5% general tariff

Not high enough. 20%.

[SgtHooper]

And one important thing—that 12% is on every living and eligible taxpayer, no matter the source of income, e.g., entitlements. E-v-e-r-y-o-n-e has “skin in the game”! Nobody can make “dime one” off government handouts.

[Freee-dame]

Sounds good except for exempting charitable donations. When the Clinton Foundation is an example of a charity, it’s time to end tax exempt status across the board.

[qwerty1234]

EMP preparedness deduction...but nothing for the coming zombie apocalypse?

[Ouderkirk]

A simple flat tax...everyone pays, no exemptions, no deductions.

10% is good enough for God, it can be good enough for the government.

Frankly, I find an income tax repulsive and is theft but we need to get away from a progressive tax system.

[PubliusMM]

The Flat Tax...get completely away from income taxation. Tax consumption.

[ridesthemiles]

#10===

I already paid taxes on the deductions they took for Soc Sec.

[LouAvul]

Flame? Ok. This is not news and doesn’t belong here. This is a vanity and as such, goes in chat.

[freedumb2003]

>>And one important thing—that 12% is on every living and eligible taxpayer, no matter the source of income, e.g., entitlements. E-v-e-r-y-o-n-e has “skin in the game”! Nobody can make “dime one” off government handouts.<<

We reach, man! Good to see you are not a Herbert!

[DIRTYSECRET]

Corporate tax should be ZERO. 20% is throwing a bone to the left because as you know corporations pay no taxes. Compromise: Corporate taxes fund the military only. They have the most to lose in a conflict. The tax goes up and voters wonder why. Flat tax or Fair Tax for everyone else. Get rid of the lefts divisive word games.

[JimRed]

No deductions, exemptions or anything else other than DIRECT costs for companies.

No mortgage interest deductions? How about as a business expense for the owners of rental property? Would it even make sense to own a home, rather than rent? Would it make sense to own rental property? Watch out for unforeseen consequences!

[freedumb2003]

>>No mortgage interest deductions? <<

No.

>>How about as a business expense for the owners of rental property? <<

I specifically called out allowing direct expenses.

>>Would it even make sense to own a home, rather than rent?<<

Anyone who thinks it is better to own instead of rent b/c of the mortgage interest exemption is too stupid to understand real estate and should be forced to rent

>>Would it make sense to own rental property? <<

If you want to make money, yes. You see, you purchase a property for X and then rent it to people until the total of all the rents over time exceed X (this is called “profit” and this is a very simplified example). Some people make money this way. Some do not. The ones who make money will be taxed on the amount they make after subtracting direct expenses.

>>Watch out for unforeseen consequences!<<

I see: the current system is much better.

[nosf40]

No income taxation! We are not government’s slaves.

Fairtax.org

[Taxman]

No offense intended, and no flames, TSR, but you are one of many folks who have some clever ideas about how to rearrange the deck chairs on the IRS Titanic!

Here is my suggestion: FAIRtax!

FAIRtax, H.R.25 and S.18 will replace the Marxist inspired “progressive” income tax with a fair, flat national retail sales tax and abolish the IRS.

Just think, you will NEVER file an income tax return again! How much money you make and how you make it will be nobody’s business!

ALL of you income will come to you tax FRee and YOU will choose how much taxes you pay by deciding what to buy!

It is a FReedom issue! You will be FRee to work, earn, save, invest and spend without the heavy hand of government interfering!

April 15th will become a nice spring day!

Check the FAIRtax out at https://www.fairtax.org!

[Taxman]

Deserve repeating:

FAIRtax!

httpsL//www.fairtax.org

[DoodleDawg]

...and EMP preparedness spending...

Say what?