1. No negative taxes. You might end up with zero in taxes due, but you can’t get free money from the government, so if you use tax credits and are poor and get your liability to zero, good for you.
2. Every person / corporation in the country and every citizen outside of the country above the poverty level must pay a minimum of 1% of income for taxes (they can get credits if applicable to bring their tax bill down to 1%, but no less). I would recommend that the poverty level for one person be set at $15,000 and then adjusted every year up or down based on economic conditions.
3. Income is income, it makes no difference if you shovel gravel to build a road, own the company that is building the road, inherit the company that is building the road, or earn residual income on the selling of the stock in the company that builds the roads. It also makes no difference if you are married or if you are a new citizen. You make money, you use services, it costs money for those services and if you want them around when you need them, then you have to contribute like everyone else. I would also recommend that the federal minimum wage be set at $8.50 per hour.
4. All politicians must agree to work towards a balanced budget, spending no more than what they take, except in cases of national / state emergencies.
5. Social security / retirement will be taxed at 6% and the employer must also pay 6%. The age of retirement shall be deemed by taking the average life expectancy over a certain period of time and then taking 85% of that age. Set the age until 2015 at 67 and then adjust in 2015. Anyone who reaches that age will then be eligible to collect, all years rounded up. Employers and employees will be reimbursed at the end of the tax year for any part of the tax paid up to the 6% that is placed into private retirement accounts; any monies withdrawn from those accounts for any reason prior to retirement age shall be taxed and penalized with the monies going into the social security accounts. All politicians shall be enrolled in the state or federal retirement programs the same as all other workers. One policy for all federal workers, one policy for all state workers.
6. Suggested Federal Tax brackets would be as follows: 0 – 25,000 = 10% ; 25,000 – 50,000 = 16% ; 50,000 – 250,000 = 22% ; 250,000 – 500,000 = 28% ; 500,000 – 750,000 = 34 % ; 750,000 or above = 40%
7. Suggested State Tax brackets would be as follows: 0 – 25,000 = 2% ; 25,000 – 250,000 = 4% ; 250,000 – 500,000 = 6% ; 500,000 – 1,000,000 = 8% ; 1,000,000 or above = 10%
8. Suggested sales tax on all non-food goods: State sales tax 4%; Federal sales tax 1% , based on the location of the point of sale.
9. Medicare / Medicaid / Health insurance : shall be a private, state, or national account, where each individual will be paying themselves, or the employer will purchase from the private, state, or federal program, this will be taken directly from income as a deduction. Everyone needs healthcare and everyone should contribute. Therefore all employed people will be required as a withholding to pay 1% in Federal Medical Care Tax (which will be split 50 / 50 with the state). Anyone over the age of 65 and at the poverty level or anyone under 65 below the poverty level will be available for a new program where they will be provided medical services for free. The new program will combine Medicare and Medicaid and shall be split 50 / 50 between the state and federal government, and will be included as part of both the federal and state health care plan. If tax credits can be provided to offset the costs to individuals then great, the state or federal taxation departments can work that and the other details out. All federal workers including politicians shall be enrolled in the federal health care plan or purchase their own, however they shall not have a separate plan provided by the government. All state workers including politicians shall be enrolled in the state plan or purchase their own.
10. And since these suggestions would be both tax decreases and increases – all politicians must immediately agree to confirm that the “no tax increase” pledge is counter-productive, and that sometimes you need to change the law and the tax codes. As well all politicians should agree that if they are not provided special retirement packages and or special healthcare, they will be much more likely to be able to discuss, debate, and solve the real problems that people face regarding health care and retirement. The people they represent, which is the majority of people in their political districts.
I believe the above suggestions will simplify the tax code, and will eliminate redundancy in current plans and administrative costs across many state and federal government agencies.
If you agree – share this with your local politician.
Change begins when you begin to change things.