General Discussion
In reply to the discussion: A Reverse Income Tax: A Bold Replacement for Social Security, Welfare, Food Stamps, and others [View all]quakerboy
(13,920 posts)No. I don't like creating different classes of people. People will use anything to look down on others. higher income persons would feel that much more justified in demanding greater power under your system.
Instead I would propose a different system. A Flat Tax, Flat payment system.
To make up specific numbers, an across the board 75% tax on all income of all types, no matter what the source.
Then to make up more numbers, 7.5% to go to national defense. And 7.5% to provide national health care. 7.5% to education, 7.5% for other government functions.
And the remaining 45% to be divided equally among all US citizens meeting any of the following criterion: Currently working. Having worked a total of 30 or more years in the US. Being over the age of 65. Being injured or ill in such a way that work is impossible or prohibitively difficult. Any situation that would currently qualify one for Unemployment, SS, SSI, SSDI, etc.
Everyone pays in a flat percent of their income, thus retaining a flat percent of their income, preserving the good that comes from the profit motive, allowing creativity and innovation to flourish. And everyone receives a flat equal portion back, whether you are a millionaire or a burger flipper.
There are issues to be dealt with. What about kids? What about people who are doing volunteer work to benefit the community. What about churches. What about local taxes and issues, and Im sure there are any number of quibbles with the apportionment to particular divisions of the government. But I think the general idea is sound.