First it's zero income tax for the "poor". Then it's zero sales tax for "necessities" like food, baby formula, diapers, etc. Then it's zero corp taxes for businesses that set up in "empowerment zones".
Of course, the lowering of revenues due to these exemptions will mean raising the tax rate to 15 or 20%. At which point we're right back where we are now.
Either the plan firmly comes with no exceptions, or forget it.
I think it would be best to have a tax code that taxes on the first dollar, even for the poor. That way, when somebody proposes raising the tax rates, it will be felt by EVERYBODY. We got into our current mess precisely because 50% of the population feels no direct effect from taxes.
RE: I think it would be best to have a tax code that taxes on the first dollar, even for the poor. That way, when somebody proposes raising the tax rates, it will be felt by EVERYBODY. We got into our current mess precisely because 50% of the population feels no direct effect from taxes.
_________________
Well, what to say? a 9-9-9 plan with NO tweaking to 9-0-9 for poverty level wage earners would have done just that — NO EXCEPTIONS.
But then the 9-9-9 plan that is not tweaked gets criticized by both left and right for INCREASING taxes on the poverty level wage earner by over a thousand dollars which will make them even WORSE OFF than they were before.
You can’t win either way.
Either you make one or two simple exceptions or you stay with the current tax code.