Revamped new Tax system.

[ProfLefty]

In a nutshell my proposal would go something like this:
A National income tax beginning at the rate of Ten Percent and starting in application to incomes of 30k annually for single persons and 60k for marital partnerships (including all gay marriage unions)and rising in Five Percent increments for every 15k/30k of income earned annually up to a maximum ceiling of Sixty Percent on 180k/360k of annual income. No deductions whatsoever. A high quality uniform standardized system of universal pre-school through high school education for everyone everywhere in the country and a universal high quality national health insurance system similar to medicare but extended to each and every citizen. In addition to the income taxes roughly approximated above I would also urge the implementation of the following additional national taxes:
1) A national sales tax on all food and nonessential items in
the amount of 2.5 Percent on each dollar spent;
2) An additional luxury tax on certain specifically identified
items costing in excess of 5k in the amount of Five Percent
for each dollar spent;
3) A national tax on gifts recieved, inheritances recieved or
any combination thereof which at any point in the recipient's
lifetime exceed 500k in the amount of Fifty Percent of each
dollar over the 500k threshold; and finally
4) A national tax on any windfall profits or other proceeds such
as gambling or lottery winnings and property sales which
exceed 250k in any given year in the amount of an additional
Twenty Percent of each dollar earned over the 250k threshold.

[olddem43]

1. It all sounds good to me. I would add:

A cap on income from publicly held corporations. Specifically, no employee or officer of such a corporation may have an annual income from any source in excess of ten times the amount that the lowest paid employee has.

[Fovea]

2. suggestions

Firstly-- 12th grade is far too soon for the complexity of 21st century citizenship. 16th grade public free (compulsary) education-- no dropping out, simply moving laterally into vocational concentrations.

Secondly, absolutely correct about medicine. The current high cost model is a shell game of cost shifting and reductions. Try being disabled and without health insurance. On second thought, don't... it sucks.

1. sounds needlessly regressive to me. Why are you lumping food and non-essentials into an omnibus catagory? Take botox off the national health schedule of services and tax the bejabbers out of it.

2. I guess it depends on the items identified. What if I buy a 5K bicycle?

3. Too punitive to fly...competes too hard against the human drive to nepotism. Why not just subect it to income rates as added income? With a progressive tax system, income tax would be do very good work toward redirecting what a high status employee considers compensation. These type of personality are compulsively competitive, youngest employee to have a library named after them wins.

4. Works for me.

[whistle]

3. Based on the current GDP of $11 trillion how would that pan out....

...revenue wise for the federal government in say the first year it was implemented and what would working families have left from such a system to live on? The national sales tax on food and non-essential items (??, what might those be??) is clearly regressive. On the surface the graduated income tax appears that it might be inflationary starting at 10% for $30k/$60k to with a 60% tax on all income between $180k/$360k. What happens to income earned over $180k/$360k? Higher taxes, no taxes, 10% taxes? Put it in an econometric model and let it roll, see what comes out for all tax payers across the board. If average working Americans can come out ahead, go for it. If the new programs and existing debt keeps driving up the federal deficits while the rich get richer, then we know this is just another neo-conservative con-job.

<edit by Whistle:> Send your idea in to these people at the University of Michigan. They have one of the best econometric model for the U.S. economy in the country. Dubya and his crowd of free market supply-side Voodoo economics pay no attention to these folks and what has resulted is market chaos, tax breaks for the very rich and welfare for favored big corporations. The rest of us have to take it up the ass. Anyway, if UM likes your idea, I'll buy into it. <link>

http://www.umich.edu/news/Releases/2003/Mar03/r031703.html

[patdem]

4. Would love to see a Sim City model on taxes only...how they affect

the community...it would be very interesting and to see the factors behind the assumptions!!! I think FOOD should NOT be taxed with a sales tax...that is the MOST BASIC necessity.

[lapfog_1]

5. This makes no allowances for regional cost of living

if anyone here thinks that $30K is a "living wage" in Northern
California...

30K - $3K = $27K after tax which is about $2K/month to live
on... cheapest place to rent here is over $1200 and that's not
exactly "nice". So $800 or $900 for car, insurance, food,
clothing (and you want to add 2.5 % to those items).

It's just not realistic.

Even $60K a year here is not much better.

[whistle]

6. Excellent point lapfog_1, the regional differences in the U.S. have....

...become extreme, but $30k for a single person either entering the job market or peaking in the market, is not easy to live on and maintain even normal living standards in any SMSA of the country. Besides, it becomes relative to where one lives, high cost of living, higher overall wages. Then for a married couple, void of consideration for kids, the $60k number is acceptable, but factor in two infants and that becomes a stretch.

It is becoming much clearer what BushCo and the neo-cons want. There are 500 very wealthy people who want control of it all, in this country and throughout the world. These people in turn, want the very best minds totally obedient and loyal to them to make them even wealthier and more powerful. They have 60% of the world's total wealth a this very moment. So they employ at outrageous salaries and bonuses the most ruthless elements of society to carry out their bidding competing against one another and keeping their own followers in line. This translates into roughly 2.5 million top paid people who remain that way if and only if they do what is expected of them. These organized networks (500) in turn employee at the least cost possible (lowest wages, least benefits that they will work, obey and not complain) between 50 and 100 individual workers per top paid enforcer/thinker to maintain output as efficiently as possible and at a better rate than any of the other systems can do it. The door is open for anyone who wishes to pass through and turn their lives over. Just pick the one you like best. There you have Bush's 19th century vision for 21st century America.

[sadiesworld]

7. What a load.

Those who make less than $50,000 per year (with families)should pay virtually nothing in federal income taxes. The burden of state income taxes, property taxes, payroll taxes and sales taxes ALREADY disproportionately affect these people.



FOOD and NONESSENTIAL items (2.5%)"--do you read what you type????

So the income tax is 50% for those making 60K per year?????

Inheritance taxes after $500K????-Our (real) dem representatives tried to limit inheritance taxes to estates in excess of $8M but got nowhere.

A luxury tax on purchases over $5K???? Screw the folks who try to scrape to gether the cash for a used car, right?!

What happened to capital gains tax, increases in taxes for income in excess of $1M, corporate taxes, etc.?

How much is your soul worth?

[ProfLefty]

10. Thank you sadiesworld.

I made a mistake in my typing, I meant nonfood and nonessential items. Sorry for the confusion. As far as the capital gains tax it is in my outline...described as a windfall profits tax...pretty much the same thing. I wouldn't necessarily classify a car or other means of necessary transportation as a luxury...my thinking along those lines runs more to yachts, mink coats, etc. In any event there is plenty of room for fine tuning...I appreciate your input and thanks for pointing out my typo.

[Massacure]

8. I don't like that.

How about:

$0 - $20,000 = nothing
$20,001 - $50,000 = 5% everything above 20,000.
$50,001 - $100,000 = $1,500 + 10% everything above $50,000
$100,001 - $250,000 = $6,500 + 20% everything above $100,000
$250,001 - $500,000 = $36,500 + 30% everything above $250,000
$500,001 - $1,000,000 = $111,500 + 40% everything above $500,000
$1,000,001 or more = $311,500 + 50% everything above $1,000,000

Offer low interest loans for fuel efficienct cars, and energy star homes. Giving tax breaks is too complex.

[ProfLefty]

11. I could get with that Massacure.

Essentially what I would like to see is us be able to balance our budget once again thereby correcting the current administration's irresponsible and outrageous spending but also, I would like to see enough revenue generated to provide each and every one of us with a first rate system of national universal health care and also to have a uniform high quality standardized pre-school through high school education system put into effect. If your plan can do that...I am all for it. Thanks for your input. I appreciate it.

[ProfLefty]

9. This is a rough outline.

Aimed at paying down our currently skyrocketing deficit while accomplishing two major objectives:
1) Shifting the tax burden onto those more capable of shouldering it and those who have benefitted from our nation's current profligate spending spree; and
2) Funding the educational and health care programs which although very expensive are in my humble opinion the two most crucial and pressing needs that we as a people and a nation currently have.
Please all bear in mind that this is not a finished plan just an idea that I am throwing out for your valuable feedback. Thanks.