A "FLAT" TAX PLAN
The mantra of many on the Right is the implementation of a flat tax plan, claiming it is the fairest way to tax, it would simplify the code and would minimize the influence of lobbyists who constantly argue for preferential treatment for their side in the collection of revenues by the government. Listed below is a "flat tax plan" that is fair, equitable and simple.
Proposal: All deductions and exclusions from taxes would be eliminated. Everyone earning revenues from any source in the Unites States of America would be allowed to earn $100,000 tax free. All revenues earned in excess of that would be taxed based on existing tax code less their first $100,000. Therefore, an individual earning $135,000 would be taxed on $35,000 at whatever the present code taxes the $35,000. If they earn $1,000,000 they are taxed at the current rate on $900,000. This tax would be applicable to revenue for all sources. That would include dividend income, Social Security payments, money earned from stock sales, real estate sales, or any other form of Capital Gains. Those eight individuals who testified in front of Congress and earned over one billion dollars each by hedge fund operations would be taxed at the current maximum rate of 35%, not 15% less whatever deductions they may be presently applying to their scandalous salaries.
Exemptions: (You know there had to be some.) The only deductions permitted are for Charities. i.e. Charities registered with the Federal Government, National MS Society as an example. Church donations. Money donated to legitimate registered churches would not be taxed. Churches however would be taxed. These mega churches with seven figure weekly revenues would be faced with reality. You pay taxes. And Children. Any money earned from inheritance, would be taxed at 50% of the rate for that income. Example: A family inherits $750,00 divided between three children. Each gets $250,000 and they year $50,000 from their regular jobs. Their income that year swells to $300,000. They take $100,000 off the top and pay - of the regular tax on the amount over the $100,000 for just that year.
Corporate tax: Eliminate it. All profits realized by any company would not be taxed. As soon as the revenues pass into private hands by stock sales, dividends, or in any way passes into a private bank account, it gets taxed. Any benefit realized by corporate executives that ordinary employees cannot receive would be taxed, i.e. trips to exotic places, luxury hotel stays, etc. These benefits must be available to ordinary employees such as the whole sales force if they must travel, not just reserved for the top three or four operating officers.
This plan is not perfect, but I think it's a lot better than Paul Ryan's plan. I think it does more than proposals made by Senator Stabenow. I don't have the benefit of running it through the CBO, but my guess is it would significantly increase revenue. David Axelrod and the Obama re-election team should consider it as an alternative to the flat tax proposed by the other side.