The economy blows, now what?
So the economy is in the tank, the usual suspects to blame, the question is what do we do? If you ask me, and you did by coming here, you start with the entire concept of the Treasury department. While many branches in government work fine or relatively efficient, the Treasury department certainly does not. In combination with the IRS this has to be a crew of mis-guided individuals. Now, in their defense, they are governed by Congress.
The US has formed this concept of taxation at the point of net. The time at which you bring funds in, whether you be a business or person, you are taxed when you get the money not when you utilize it (aside from payroll tax). My opinion is change this entire concept. Remove income tax, payroll tax and corporate tax. Instead, create...oh gosh..a flat taxation system.
My opinion is assess a 20% national tax. Families or those with dependents would be allowed to add an additional reduction in net values based on how many dependents they had. You take what you made, subtract what you spend and that remaining figure (aka net revenue from all your work) is taxed a flat 20%. There are not deductions or modifications based on dividends, shares, etc..
The danger side to this that I see, states. Your lovely state. When it realizes you now are saving 60-70% of what you were taxed formally by the federal government, they may rush to grasp those extra funds. It is up to each of us to vote down such legislation.
Now, why will the government not do this? It is simple. If you allow consumers to regulate their taxable spending you remove the capacity for the federal government to control debt. If they can't estimate their gross earnings in taxes based on incomes, they can't estimate how much to over spend. Instead of being able to say "we'll take in 1.2T dollars in income tax this year" they'd be saying "the range could be from 500B-1T dollars". This makes it very hard to maintain debt.
I'm not blowing smoke, this works: Article from Heritage.org
The US has formed this concept of taxation at the point of net. The time at which you bring funds in, whether you be a business or person, you are taxed when you get the money not when you utilize it (aside from payroll tax). My opinion is change this entire concept. Remove income tax, payroll tax and corporate tax. Instead, create...oh gosh..a flat taxation system.
My opinion is assess a 20% national tax. Families or those with dependents would be allowed to add an additional reduction in net values based on how many dependents they had. You take what you made, subtract what you spend and that remaining figure (aka net revenue from all your work) is taxed a flat 20%. There are not deductions or modifications based on dividends, shares, etc..
The danger side to this that I see, states. Your lovely state. When it realizes you now are saving 60-70% of what you were taxed formally by the federal government, they may rush to grasp those extra funds. It is up to each of us to vote down such legislation.
Now, why will the government not do this? It is simple. If you allow consumers to regulate their taxable spending you remove the capacity for the federal government to control debt. If they can't estimate their gross earnings in taxes based on incomes, they can't estimate how much to over spend. Instead of being able to say "we'll take in 1.2T dollars in income tax this year" they'd be saying "the range could be from 500B-1T dollars". This makes it very hard to maintain debt.
I'm not blowing smoke, this works: Article from Heritage.org
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