Subject: Tax Code Makeover Comment: Estimated 17% FLAT TAX ON ALL INCOME for EVERYONE who is earning above Alaska's poverty line (approx $12,000 for 1 person - according to this chart: http://aspe.hhs.gov/poverty/05poverty.shtml). If someone is within 17% of the poverty line, they will not be taxed so that they fall below it. NO DEDUCTIONS, CREDITS OR LOOPHOLES except for home ownership, charitable donations and starting up NEW businesses. Business write offs will be as follows: 0% the first year, 3% the second year, 7% the third year, 11% the fourth, 15% the fifth and then 17% from then on. NO LOOPHOLES! Kids can also be a tax credit, but only up to 3 kids max. Anything more than that see this chart: http://aspe.hhs.gov/poverty/05poverty.shtml. This plan is simple and fair to all. 17% is an estimate only. It could be more, it is likely less. I'm no economist and I don't have access to any statistics, but EVERYONE should pay the same taxes. No breaks for the rich, middle or low-income classes. Only the poorest of the poor get a break (as they should). Compliance would almost be a non-issue because it would be automatically deducted from every paycheck. At the end of the year people would submit their mortgage interest, donations and # of kids. A few weeks later they would get their refund check (not taxed). If they don't have any write offs, they don's send anything in. Imagine a tax season where only refund checks are distributed. The only ones who will have to pay are the cheaters. The IRS would simply be a watchdog for corporations hiding $ offshore and for people who work in cash only occupations. |