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Discussion in 'Politics, Religion, Social Issues' started by IntelliUser, Nov 18, 2011.
I had some fun playing around with this. But instead of a post-tax credit, I'd prefer to see an option for an income expemption amount. Like the tax only starts accruing after your income crosses a certain amount. If you make less than that amount, you pay nothing, but get nothing. With just a credit, you not only don't pay anything, but may get extra back.
How about this?
Extinguish ALL local, county/parish, state, and federal taxes (this includes, but is not limited to, income, personal property, real estate, sales). Replace them with a single national income tax of 20% of all income over $20K. Taxes would be reported as individuals and there would be NO deductions or exemptions, except:
Savings interest and dividend/bond payments would be tax free.
Capital gains would have a stepped tax rate:
Asset (home, stock, etc.) held for more than 7 years: 0% tax rate
Asset held for 4 to 7 years: 40% rate
Asset held for 2 to 4 years: 60% rate
Asset held for less than 2 years: 80% rate.
The federal government would retain 12% of the collected taxes. The state would receive 5%. If an individual lives in an unincorporated area then the county/parish/independent city would receive the remaining 3%. If an individual lives in an incorporated area then the county/parish would receive 2% and the town/non-independent city would receive the remaining 1%.
All businesses would be taxed at 10% and there would be one standard tax form that would be almost exactly like the current Schedule C in format. This would keep businesses from gaming their taxes through convoluted tax filings.
100% on everything.
The Federal government does not have the authority to abolish local and state taxes.