The following bill is part of a comprehensive economic plan detailed in the book “Resuscitating America – An Independent Voter’s Guide to Restoring the American Dream.” The plan and all quotes below are taken from that book with the author’s permission.
The purpose of this bill is to revive the economy and reduce the greedy behavior that hampers economic growth and endangers the proper functioning of investment markets while not increasing bureaucracy or expanding the size of government.
This tax bill would:
1. Eliminate the income tax on the first $100,000 of taxable income earned by a single filer ($150,000 for a couple filing jointly).
2. Establish two income tax rates. The first marginal rate would be applicable to taxable income from $100,000 to $900,000 (for single filers) and would be a rate of 40 percent. The second rate, of 85 percent, would apply to all taxable income over $900,000 for single filers ($975,000 for married filing jointly).
3. Capital gains should be taxed as normal income. The only exception to this would be increases gained through the disposition of businesses where the seller was part of the initial investment group. These “IPO” gains would be taxed at 15 percent (unless the seller pays a lower rate on his/her normal income, in which case the gains would be taxed as normal income).
4. Eliminate all exemptions — for filers, spouses, children and other dependents (Line 42 on Form 1040)
“Step number 1 completely eliminates the senseless burden of income taxes for roughly 95 percent of tax filers. Steps 1 and 2 provide a huge tax cut for the largest portion of wager earners in America (particularly in the middle-class). In fact, compared with the 2010 income tax system, almost everyone earning $500,000 a year or less would get some level of income tax relief (single filers with an income of $500,000 would see a slight increase). This should provide an enormous stimulus for the economy, not only by putting more money into the hands of people who will spend it, but by providing middle-class wage earners the seed money to start that small business of which some of them have always dreamed. … the very high threshold at which the second marginal rate kicks in allows present small business owners to earn a healthy, reasonable return on the time and investment they’ve dedicated to their venture.”
To insure that all Americans are contributing to the federal government (which is only fair), this bill would have to be combined with the Energy Independence/Sustainability Act. Combined with that act and the American Fair Trade Act, it should provide economic stimulus and a more robust and sustainable economy – all without increasing the size of government.
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