Saturday, January 29, 2011

My View of Tax Justice

Greg Mankiw presents a very good video on Taxes, which is fair and balanced; rendering a good expression of current sentiments on Taxes. He labeled his Post ‘Tax Justice’, and therefore it behooves me to render my own version of such a Concept. I would like to assert foremost that Tax simplification is the biggest item on my agenda. This first calls for all Income to be labeled as Income, with no differentiation or freedom granted by such from tax assignment. The ‘Flat Tax’ of Steve Forbes leaves me somewhat cold, as this leaves the Wealthy free of a normal assessment of Taxation based upon ability to earn more than their Neighbors. The common Progressive Income Tax also leaves me cold, due to the steady erosion of impact due to Tax concessions remanded into law. This entire system of Tax remissions leads me to condemn the entire tax system as prejudiced and discriminatory.

I believe that there should be a ‘Flat Tax’ assessed on all Income without remissions. I believe that the Tax level should be universally 12% of Income. I will further state that all individual Tax contributions must first be directed to the Social Security General Fund until the maximum payment level is met, or until the Tax requirement is paid. Past this Point in fiscal minimum, some 3% of total Revenues shall be paid to the States in substitution for a Sales Tax, and 2% of said revenue shall be directed to Local Government in lieu of Property taxation. There is a reason Why I set the base rate so low at 12%. The next paragraph will bear on this discussion.

An additional Tax increase of 1% of total Income will be added for every $10,000 over $30,000. This means that any Income over $30,000 will pay 13% of all Income, over $40,000 some 14%, and through the $10ks until a rate of 35% will serve as a maximum where Income of any source equals $350,000 per year. There is to be absolutely no Tax remissions of any type–even including Personal Exemptions. Inheritance Taxation will be at 35% starting at an initial excused $3 million dollars per heir. There will be no Investment Credits or Tax reductions of any kind, and little need for detailed Income Tax returns. The States and Local Government will still be free to impose any Property taxes they need, as well and licensing fees etc., but no further Sales taxes. Business, Corporation, Partnership, Sole Proprietorship, and Charities will face the same Tax rates and lack of Tax remissions. Churches will only be taxed on Collections that they advance to higher regional networks greater than a parish or congregation level. It is my View of Tax Justice. lgl

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