Fresh off the craziness of getting your taxes done. It makes you think maybe next year it will be easier, well ok, maybe the new President will bring along some of the options you have been hearing about.
For years they have been talking about changing our tax structure. Removing this, adding that, altering something else, it’s a complicated mess, even for the professionals. Six tax brackets from 10% to 35% to suit us all. There’s thoughts on dropping it to three percentages, 12, 22 and 28%.
6.1 billion hours preparing tax forms
1, 175 forms
72,000 pages of the current code
$7 billion per year for our tax preparers
Which even though it has more details than just a percentage of your income, it is in essence, simple.
Rick Perry says, “Unleashes Economic Growth”. and he suggests a 20% flat tax.
Part of Herman Cain’s 9-9-9 plan, with a 9% flat Tax
Michael Burgess a U.S. Representative likes 19% for the first year, 17 percent after that.
The Flat tax should really be an outright Flat tax with no exceptions, exemptions, etc. one percentage for all. This will truly be the simplest.
You make $50,000 per year, so at 10% you owe $5,000 per year PERIOD.
You make $5,000,000 mil per year you owe $500,000.
I used 10% as an easy way to highlight how simple it can be, but I doubt it, not enough income for our hungry government.
Its like a roulette wheel at this point maybe it will land on 9, 16, 17, 19, 20%. But it should be easy for those math phd, economists. For blogging out loud))we spend $3.5 Trillion and only receive $2.8 Trillion. It’s time to straighten things out.
Most flat tax proposals eliminate most or all of the deductions and credits, such as the mortgage interest deduction, the deduction for charitable giving, etc.
I’ll give it a shot, how about,
First Year: 21% (that 1% is to kill ISIS)
Second Year: 20% (helps us cut deficit)
Third Year: 19% (getting better, but still have the deficit)
Sixth: 16% and finally after balancing the budget we settle at 15%.
With this exception, War, at which time the government can impose a higher rate to accommodate extra expenses.
23% Nationwide sales tax only for new goods and services. Making it easier for that used car. With a whole bunch of confusion that raises it up to almost 30% There would have to be policing for the huge grey market that will happen to avoid the tax.
Europes version the VAT (Value added tax) varies UK 20%, Greece 23%, Italy 22%.
One thing that makes sense, you are doing ok, so you buy stuff, your really doing ok, your buying more stuff, you’re a freakin millionaire, you are always buying stuff. The good thing is, if your on a tight budget, your cutting back on buying stuff. Which is good because there is no tax on stuff you don’t buy, and their is no income tax.
So similar structure to the flat tax. We think it can start at 26% going down to 20% after 6 years.
On top of the FAIR tax if you earn above $200,000 you pay an additional 1% more and after every $100k another 1%
$400k would be 23%
$500k would be 24%
$1mil would be 25%
So, you think thats to little for the rich? Well in my world the rich employ us. We need strong business. Lets all grow up and realize, you may be rowing a boat, but at least the guy who owns it, is giving you a job.
Rearange our current tax law, but this will just be a different recipe and probably not taste good either.
Our guess, here is what will happen with our Tax system…NOTHING! Even though everyone is sick of the IRS, it may be too disruptive. Until Obama is out nothing will change. Don’t forget he is big government.
Approximately 95,000 people worked for the IRS in 2014 with Internal Revenue Agents making between $56k – $74k. Tax preparation is big business, they rake in about $6-7 billion a year. What will we do with all these unemployed people?
Presidential hopefuls should ride this))