Subject: New Tax System
Comment: The US Federal Tax system should be two separate tax systems, 1) A Flat Revenue Tax, and 2) A Energy Shipping Tax on products shipped.
The primary objectives of any US tax system should be to have 1) a simple tax system, 2) a system that does not benefit a few, 3) a system that promotes US business, yet 4) a tax system that promotes a strong America job and employment potential and 5) a system that assist in the preservation of the world environment.
Each of two tax systems should each have no more than 2 pages that define the tax. Any more then that and the system adds complexity to the system, and gives the politicians the opportunity to add in their support to special groups.
No Special Benefits:
All citizens and companies must be treated the same, and there will be no special treatment except for the % of tax (dependent of the amount) that is paid on their income.
American Business in America and American Jobs
Since the US politicians want this country to be part of the WTO, the tax system should provide a benefit to those companies that want to and will product in the US for the US market, and penalize those that want to product offshore and ship to the US. The tax system can promote the creation of manufacturing jobs in America and create a stronger US.
The US and the world’s energy needs are expanding beyond the worlds capability of providing it. A great portion of the wasted energy utilization is for the movement of unnecessary goods around the world. If a product can be produced in the community where it is needed, little energy is required to get the product to the customer. This localization of business will promote good paying jobs (reducing transportation to and from your job) and a reduction of energy utilization to transport the product.
Each person will pay x% on all their revenue (salary, tips, sale of goods/property, barter, etc) with no deductions for anyone for any reason. The percentage can be indexed if required, so that, Lets say, anyone with revenue of under $25K would pay 0% and everyone else would pay 5%.
An individual should be able to report their taxes on a 3x5 card.
Each company will pay y% on all their revenue (sale of goods, barter, sale of property, etc) with no deductions for any reason, even the cost of goods. This can also be indexed, but I would not recommend this, for companies can game indexing by corporate organization.
Energy Shipping Tax:
An tax of $x (lets say $.10) for each 100 lbs shipped 100 miles will be paid. This will be for the shipment of products within a corporation, from corporation to corporation, from corporation to customer, and from individual to individual. If a company makes a product in China and ship’s to Mexico and then to the US, the initiation point in China would be the point from where the product was shipped and where the tax would start.
Anything under 100 miles would not be taxed.