Lay out your ideal tax code

[Recursion]

Here's mine:

* A personal exemption up to the median income (the bottom half of all taxpayers would pay no income taxes)

* 25% on all wage income above the median income (This is to be tweaked from every few years or so to meet revenue needs -- 25% may be too high, actually)

* A surcharge equal to the US poverty rate on all income above three times the median income (so if the US poverty rate were 14%, the top marginal tax rate would be 39%)

* A surcharge of twice the poverty level on all unearned income (if rentiers can get the poverty level to 0 I'm happy to let them keep everything)

* No further deductions, exemptions, etc. except an EITC for the bottom quartile to generate what's essentially a guaranteed income for all adults

* Application of FICA and Medicare levies against all personal income of any source

* Move corporate taxes to an ad valorem model: tax non-inventory assets of companies rather than the money they make (this discourages sitting on assets): I would prefer most of the taxation happen when the money moves to an individual (I'm still iffy on this; my other idea is to treat corporate income exactly like personal income -- the revenue differences are pretty staggering and this would result in a much lower rate).

This gives two macro incentives to individuals (and, in my alternate corporate tax model, corporations):
1. Reduce the poverty rate
2. Raise the median income

[justiceischeap]

1. A flat rate for everyone that earns an income

No tax loopholes, no special deductions, just a flat fee.

[Recursion]

2. Do you mean a flat tax or a head tax?

Like, everybody pays 30% (flat) or everybody pays $3,000 (head)?

[Glassunion]

7. A flat rate would harm the lower income groups.

[Broderick]

3. So if I happen to have income 20 bucks over

I get nailed for 25%, but someone who made 20 bucks less has no tax?








25% on all wage income above the median income (This is to be tweaked from every few years or so to meet revenue needs -- 25% may be too high, actually)

* A surcharge equal to the US poverty rate on all income above three times the median income (so if the US poverty rate were 14%, the top marginal tax rate would be 39%)

[Recursion]

4. You get nailed for 25% of the $20, or $5.

Your income up to the median national income is exempt from income tax.

[Broderick]

5. Now that makes sense to me

thanks for the clarification.

[eridani]

12. You get nailed for 25% of $20--or $5

Apologize for not seeing that someone beat me to this.

[aquart]

6. Really foolish to depend on a rate that will be set by government.

Being generous, I want 80% of gross yearly income above $7 million.

I want 80% of any estate that leaves more than $7 million to ANY heir INCLUDING FOUNDATIONS above that $7 million figure. I want it to be almost impossible to inherit billions. Dangerous as the Koch brothers are, their wills will fund centuries of misery for Americans.

Depending on official poverty level rates guarantees someone will screw with those figures ensuring that people who need help will never get it.

[LanternWaste]

8. The 1947 IRS Federal tax laws.

The 1947 IRS Federal tax laws.

[originalpckelly]

9. From the moment the law is passed, all people would have a business and personal account...

at a central bank of the united states.

If you make money, it goes to the business account. You can re-invest it to your heart's content. Buy business apparel, supplies for a business, etc. Anything business expense would be completely un-taxed to promote growth.

If you want to use it for personal purposes, then you have to pay a tax when it is transferred to the personal account.

The lowest groups, below a real poverty line would not have to pay any taxes at all. Above that line, it would be a progressive tax. The tax would exponentially increase based upon a formula taking into account one's percentile rank of income and wealth.

All other taxes at the Federal level would be totally eliminated, and on a dollar for dollar basis would be replaced with this new income tax model.

But that's not all, this model, which I call the OneTax model, would also include income taxes for all other levels of government. To accomplish this we would have to switch to a system of electronic currency, and then create electronic bills (basically serial numbers, rather than a vanilla value in an account) and this would allow everyone to know where money was made.

We could then allow local governments to set a tax rate on all the income made in their areas, based hopefully upon the Federal formula, and this would allow them, once again, on a dollar for dollar basis eliminate all other forms of tax and center taxes on income.

All income that is passed to the personal side would be taxable in the same way, rather than having traditional income taxes v. capital gains taxes or corporate taxes. Everyone would pay up, if they are above that new real poverty level.

This central bank would act as the depository institution for all people in the country, but private banks would act as service providers for it, with the impoverished of our nation using post offices as their service provider. At one time the post office was indeed the provider of a savings system, and returning to such a thing, might allow the USPS to stay open and give us a new use for the property.

[Shrek]

10. Federal outlays / Population = Tax Liability n/t

[Taverner]

11. Graduated tax brackets that give money back to the poor

...and taxes those making over $1million per annum at 75%

Pot is legal, taxed. Alcohol is legal, taxed. Tobacco is legal, taxed. Gasoline is legal, taxed.

Credits for electric vehicles

Credits for solar panels

Tax penalties for H1-B visas

Tax penalties for labor pimps

Churches, unless they are involved in genuine charity (aka not forcing jeebus down our throats), lose their tax-free status

Increase Capital gains tax

Increase estate tax

Idiots in Bakersfield or Fresno named RimJob pay 90% in taxes