I’d be fine with a simple 10% flat income tax with no deductions, exemptions of credits, and leaving SS/M to be sorted out later.
But that would mean the family of four who today pay only %690/yr in Federal income tax would be paying $5,000/yr.
Since that isn’t going to fly because people want to give families a break and somehow think producers should pay higher tax rates than takers, how about this:
Three tax rates: 5%, 10%, 15%.
The 5% rate applies to the first portion of income, up to Number of filers * $15K + Number of Children * $5K. Children count twice if parents are filing jointly or if one parent is deceased.
The 10% rate applies to the next portion of income, up to Number of filers * $100K + Number of Children * $20K.
The 15% rate applies to all income above that.
No estate or gift taxes.
Corporate income tax is eliminated for earnings retained less than three years, and earnings retained longer than three years must be distributed to shareholders. Employer’s 7.65% Payroll tax is collected on all employee compensation, including the value of fringe benefits like pension contributions and health insurance. This payroll tax pays the benefits currently promised to retirees.
Employees’ 7.65% payroll tax only on wages up to $100K/yr goes into private accounts, invested in S&P 500 index funds with retirement benefits calculated at time of retirement based on annuity value and life expectancy. This is in addition to the benefit SS would have paid if they stopped working today.
Huh?