I did slightly better than Tim Haab, coming in with about $2080 bn saved! It surprises me to a great degree, because the Options offered came nowhere close to what I would advise. I would first propose expandable Income Tax rates–same percentages, but with higher Income divisions. I would call for a Transactions Tax on Market transactions equal to 1% of the total amount of trade. I would advise a higher Step-Off level of taxation, but insist that the Estate Tax be 35% above that level with no Exemptions. I would split the Wealth, and state that any bequest over $100 million will be taxed 100%; Will-writers will be advised to spread out their dispersions. Capital Gains would be taxed as ordinary Income with ordinary Income rates, beyond a $10,000 per year deduction for each Taxpayer–twice this amount for Joint filings of married couples. The mortgage tax credit would be a set amount of $5000 per household, with proof of payment required. Churches, Charities, and Foundations will be taxed at residual rates, by the amount by percentage of Income which did not go to charitable or academic research; if only 30% of Income went to fund these operations, then the tax rate will be 70%; if 70% of such funds were used for the purposes proclaimed, then the tax rate would be 30%. I state the above knowing full well the separation of Church and State, but no one said a damned word about Taxes.
I will insist in the future on my desire to take 21% of all Income, while waiting until after the filing of Tax Return for any deductions, exemptions, tax credits, or reductions of any type. This I believe to be essential, even if none of the Above will be adopted. The rationale behind this is to place federal spending on the same level playing field as private consumption. The Private sector must make a unilateral choice with every purchase, where Income spent on one item cannot be spent on any other item. The Government, though, simply thinks to continue Spending; leaving it to the Treasury to come up with the added Cash. The practice places extreme pressure on Prices, driving them artificially upward. The set Tax Assessment reintroduces the concept of natural Demand dispersal into the economy, with the Government taking the financial resources out of the economy which they spend; all without undue pressure on Product pricing.
Most economists will likely possess high reservations about my analysis, but I cannot perceive any measure which can cancel the adverse effects of Government spending, especially deficit spending, outside of a targeted, uniform Tax Assessment. I have never joined the Keynesians in the belief that there need be a continual deficit programs for maximum economic performance. My belief has been that it must be long-term adverse to the economy, cutting capitalization funding in the Short-Run, and pressuring economic profits in the Long-Run. I may be Right, I may be Wrong, but I do know that Government is not doing any Good anymore! lgl