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My ideas for tax reform
My bad self | October 23, 2017 | Me

Posted on 10/23/2017 12:56:24 PM PDT by 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!


TOPICS: Business/Economy; Constitution/Conservatism; FReeper Editorial; Government; News/Current Events; Politics/Elections
KEYWORDS: deductions; exemptions; rates; simplification; taxreform; yourmoney
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To: Taxman

As long as it is 10 percent instead of 30 percent (9 percent instead of 23 percent, inclusive), count me in!


21 posted on 10/23/2017 7:03:34 PM PDT by Tolerance Sucks Rocks (Environ-MENTAL-ism is MENTAL)
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To: central_va

20% would be a good number to compensate against somebody dumping subsidized crap on our shores. I tend to believe, however, that high tariffs as a rule do more harm than good, and that free trade (actual free trade, not managed trade) with friendly and neutral countries is beneficial to us.

As an example, the Smoot-Hawley tariffs (around 60%) and the resulting punitive tariffs on our goods by other countries, caused such a slowdown in international trade that it contributed to the Great Depression, due to a lack of foreign goods in addition to our domestic goods.


22 posted on 10/23/2017 7:08:21 PM PDT by Tolerance Sucks Rocks (Environ-MENTAL-ism is MENTAL)
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To: qwerty1234

The markets for guns and knives are already flourishing. In the meantime, nobody seems to be building redundant transformers and other things we would need to resume operations quickly in case of an EMP or a Class X solar storm.


23 posted on 10/23/2017 7:10:38 PM PDT by Tolerance Sucks Rocks (Environ-MENTAL-ism is MENTAL)
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To: ridesthemiles

The tax would hopefully become 0 percent once Congress suffers an attack of fiscal sanity and enacts meaningful budget cuts.


24 posted on 10/23/2017 7:11:46 PM PDT by Tolerance Sucks Rocks (Environ-MENTAL-ism is MENTAL)
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To: Tolerance Sucks Rocks

That Smoot Hawley significantly contribution to the Great Dispersion is neocon lie. Look at the raw data. Trade vs GDP? 4%. 4% which went to 2% of the economy post Smoot is not going to tank it in any significant way.


25 posted on 10/23/2017 7:12:16 PM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: central_va

Thanks for the info.


26 posted on 10/23/2017 7:14:07 PM PDT by Tolerance Sucks Rocks (Environ-MENTAL-ism is MENTAL)
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To: Tolerance Sucks Rocks

Dispersion = Depression


27 posted on 10/23/2017 7:15:45 PM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: Tolerance Sucks Rocks

Numbers don’t work, initially, at 10%.

The game is played at “revenue neutral;” so we need the rate to be 23% initially.

It will go down, over time.

10%? I don’t think that is possible, given the FRee spending Congress. But, 15% is certainly feasible in a few years.

Just think how much better off you will be at 23% - do you own math.

FAIRtax is a no-brainer, unless you are a big-government control FReak!


28 posted on 10/23/2017 7:37:57 PM PDT by Taxman (Replace the income tax with the FAIRtax and abolish the IRS!)
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To: Tolerance Sucks Rocks

Any income tax is an abomination because income tax equals indentured servitude (= bondage). This country was founded on the belief that the fruits of a man’s labors were his and his alone.

Income tax also is as regressive a form of taxation as is possible because the only way to reduce tax indebtedness to better weather lean times is to earn less. And the government has never shown any discipline in the levying of income taxes and likely never will. This year the average American worked exclusively for the benefit of the government until 23 April (Tax Freedom Day). In 1950, Tax Freedom Day was 31 March. In 1900 it was 22 January.

The only way to keep Congress’ hands out of the cookie jar is not to put any cookies in it.


29 posted on 10/23/2017 8:59:45 PM PDT by Paal Gulli
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To: Paal Gulli

Well played, Paal.


30 posted on 10/24/2017 9:11:11 AM PDT by Taxman (Replace the income tax with the FAIRtax and abolish the IRS!)
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To: Paal Gulli

Income taxes are fundamentally flawed, no matter the rate, no matter how progressive or regressive. Flatten a cow pie and it remains a cow pie. And it still stinks.


31 posted on 10/25/2017 8:37:11 AM PDT by EternalVigilance
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To: Tolerance Sucks Rocks; Mariner; SkyPilot

An amendment: No tax in interest income!


32 posted on 11/02/2017 1:00:54 PM PDT by Tolerance Sucks Rocks (Environ-MENTAL-ism is MENTAL)
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