So who is with me on this ? No more income tax brackets, Just net worth brackets. 10% for the lowest worth (up to $100K) Downward to 5% for the highest worth ($10 billion and up) Well something like that, normal household exclusions would apply. This way there is more balance. A Fair Tax.
So you're going to pay taxes on the same dollars over and over, year after year? No thanks, I'll pay once.
I kinda' like the idea of PAY AT THE REGISTER DEAL... "IF" you buy a little...you get a little tax...if you buy a lot...you get a lot of tax... "NET WORTH TAX" WOULD BE FINE...IF YOU MAXED ALL YOUR CARDS BEFORE TAX DAY...SO YOU HAD $0.00 NET WORTH
A FLAT TAX WOULD BE NICE TOO... SINCE THE UPPER 1% PAY SOMETHING LIKE 50% OF THE TAXES... MAKE $10,000 PAY 20%...$2,000 MAKE $100,000 PAY 20%...$20,000 MAKE $100,000,000 PAY 20%...$20,000,000 20% IS A GUESS... NO DEDUCTIONS OF ANY KIND...THE FORM WOULD BE ON A 3X5 CARD...
Yes, Let's say I make $100k a year in my job. normal tax is around 30%, so now I lost 30K Now I make $100 K a year, I have a 100k gross, minus normal allowed expenses, say $10 k , now I have 90K instead of 70k. Hey the details would have to be worked out of course, (why do you have so much debt?, more auditing will be done) the current income tax system (maximum revenue generation for the IRS) , is not working. You should pay taxes on what you have, now what you make. (once a year)
I could see a sales tax or a flat tax. Even a tax on investments WHEN YOU BUY THEM. Of course, you pay a tax on the dividends every year. But that would assume no income tax, or you'd be taxed twice. I don't think you get my point about a net worth tax. Say the tax is 5%. I have $10,000, so I pay $500. Next year my net worth is $20,000, and I pay $1,000. BUT--I ALREADY PAID TAX ON $9,500 OF THAT LAST YEAR!! (That's the $10,000 less $500 tax from last year). Also, in a situation like we had with the crash in 2000, the net worth of bigger investors goes down, as does the tax. So, they raise the percentage to take in the same amount of money. In comparison, you only have your savings account and CDs. Your net worth has probably gone up. Now you're paying a larger proportion in tax, and the economy is declining. So your taxes get raised, and the economy declines. And your taxes go up even more. Also, consider what will happen on the day that your net worth is valued. It would have to be a point in time. So everyone sells their stock for a fraction of what it's worth, decreasing their net worth. Tomorrow, the price will still be down and they buy it back. Then the market has to work its way back up. I still say it's a bad idea. Tax my money once and let me have it!!
Ok, I leave that topic for now.... we 'll keep the income taxes, but replace the AMT tax with a Net Worth Tax. This way high net worth individuals pay something every year. ( more and more rich everyday, means more and more poor everyday )
Given the number of millionaires in Congress, and the number of millionaires who have BOUGHT Congress, I think your proposal has less chance than a snowball in hell.
So if, over the course of 10 years, you make $1M and blow it all on wine, women and song, you don't have to pay a cent of tax, but if I make $1M and save 20% of it, I not only get to live less well than you do in the meantime, but I get to pay for your services on top of it? Fat chance.
