It is impossible to "cut out all the fat" from any large organization, so any policy Dependant on doing so is guaranteed to fail.
But I'm willing to cut the Cato some slack as I believe they advocate a full 50% cut in the defense budget.
9-9-9
- Thread starter chaosclarity
- Start date
It is impossible to "cut out all the fat" from any large organization, so any policy Dependant on doing so is guaranteed to fail.
But I'm willing to cut the Cato some slack as I believe they advocate a full 50% cut in the defense budget.
I got a better idea.. a progressive tax with flat rates.
Best to do it based on normalization so it keeps up with inflation but idea is basically
If you make less then 20k, pay no taxes
20k-50k, 20% on amount over 20k
50k-70k, 27% on amount over 50k
70k-120k, 33% on amount over 70k
120-200k, 36% on amount over 120k
200k-300k, 44% on amount over 200k
300k-500k, 46% on amount over 300k
500k+, 48% on amount over 500k
(numbers may need adjusted)
The problem is as Don said businesses must figure in profits which means deductions. so are you going to take away deductions from people? That doesn't sound fair. Why not allow people to count deductions just like businesses? I recommend reducing tax code to 1 page using a flat tiered rate as above and a standardized deductions. Any deduction a business gets a person gets.
1 page tax code.
Best to do it based on normalization so it keeps up with inflation but idea is basically
If you make less then 20k, pay no taxes
20k-50k, 20% on amount over 20k
50k-70k, 27% on amount over 50k
70k-120k, 33% on amount over 70k
120-200k, 36% on amount over 120k
200k-300k, 44% on amount over 200k
300k-500k, 46% on amount over 300k
500k+, 48% on amount over 500k
(numbers may need adjusted)
The problem is as Don said businesses must figure in profits which means deductions. so are you going to take away deductions from people? That doesn't sound fair. Why not allow people to count deductions just like businesses? I recommend reducing tax code to 1 page using a flat tiered rate as above and a standardized deductions. Any deduction a business gets a person gets.
1 page tax code.
Why not? Lower rate on gross versus higher rate on net - it should equal out.
Computers are doing all the calculating anyway, so why not get rid of all exemptions and completely eliminate that as a leverage for lobbying?
Sorry, you can't take gross because taxing gross is just like taxing consumption. Look at this way, if I can make even $50 net on a trade then I may choose to take it but if you tax my gross then I don't know if I'm up or down.
It's like a guy making widgets if he can make $1 net profit then he will make the widget even if it cost him $100. Another widget maker might make $80 for his widget that cost $100.
Taxing gross is a terrible idea and would cause profitable businesses to close down over uncertainty.
A flat tax "9-9-9" is also terrible because it puts all the taxes on the poorest people because they must consume most of their income whereas rich can save/invest most and make a greater return.
Everyone has about the same living expenses, i.e to live middle class. But the people who make tons of money can invest and grow more.
I propose to reduce tax code to 1 or 2 pages. Simplify it dramatically but don't make it regressive. If you are going to do a 9-9-9 then you would have to raise the capital gains tax too.
It's like a guy making widgets if he can make $1 net profit then he will make the widget even if it cost him $100. Another widget maker might make $80 for his widget that cost $100.
Taxing gross is a terrible idea and would cause profitable businesses to close down over uncertainty.
A flat tax "9-9-9" is also terrible because it puts all the taxes on the poorest people because they must consume most of their income whereas rich can save/invest most and make a greater return.
Everyone has about the same living expenses, i.e to live middle class. But the people who make tons of money can invest and grow more.
I propose to reduce tax code to 1 or 2 pages. Simplify it dramatically but don't make it regressive. If you are going to do a 9-9-9 then you would have to raise the capital gains tax too.
Here you go.
This is from hermancain.com:
9-9-9 Plan: Summary
â¢Removes all payroll taxes and unites all tax payers
â¢Provides the least incentive to evade taxes and the fewest opportunities to do so
â¢Lifts a $430 billion dead-weight burden on the economy due to compliance, enforcement, collection, etcâ¦
â¢Is fair, simple, efficient, neutral, and transparent
â¢Ends nearly all deductions and special interest favors
â¢Features zero tax on capital gains and repatriated profits
â¢Exports leave our shores without the Business Tax or the Sales Tax embedded in their cost, making them world class competitive. Imports are subject to the same taxation as domestically produced goods, leveling the playing field.
â¢Lowest marginal rates on production
â¢Kills the Death Tax
â¢Allows immediate expensing of business investments
â¢Eliminates double taxation of dividends
â¢Increases capital formation which aids capital availability for small businesses
â¢Increased capital per worker drives productivity and wage growth
â¢Features a platform to launch properly structured Empowerment Zones to renew our inner cities
â¢The pro-growth, pro-job, pro-export economic policies of the 9-9-9 PLAN equals a strong dollar policy
This is from hermancain.com:
9-9-9 Plan: Summary
â¢Removes all payroll taxes and unites all tax payers
â¢Provides the least incentive to evade taxes and the fewest opportunities to do so
â¢Lifts a $430 billion dead-weight burden on the economy due to compliance, enforcement, collection, etcâ¦
â¢Is fair, simple, efficient, neutral, and transparent
â¢Ends nearly all deductions and special interest favors
â¢Features zero tax on capital gains and repatriated profits
â¢Exports leave our shores without the Business Tax or the Sales Tax embedded in their cost, making them world class competitive. Imports are subject to the same taxation as domestically produced goods, leveling the playing field.
â¢Lowest marginal rates on production
â¢Kills the Death Tax
â¢Allows immediate expensing of business investments
â¢Eliminates double taxation of dividends
â¢Increases capital formation which aids capital availability for small businesses
â¢Increased capital per worker drives productivity and wage growth
â¢Features a platform to launch properly structured Empowerment Zones to renew our inner cities
â¢The pro-growth, pro-job, pro-export economic policies of the 9-9-9 PLAN equals a strong dollar policy
BSAM thanks. I have to look at it more closely.
But, here is another idea, tax anxiety is caused not just because the complexity of the tax code but also because of the fears of unjust enforcement. I recommend making all federal enforcement a civil matter subject to regular civil courts. This would help reduce the anxiety as much as anything.
By both reducing tax code complexity and enforcement anxiety then tax code compliance will be made much easier and less stressful.
But, here is another idea, tax anxiety is caused not just because the complexity of the tax code but also because of the fears of unjust enforcement. I recommend making all federal enforcement a civil matter subject to regular civil courts. This would help reduce the anxiety as much as anything.
By both reducing tax code complexity and enforcement anxiety then tax code compliance will be made much easier and less stressful.
I disagree. There is no uncertainty whatsoever - you know exactly what your cost inputs are going to be, including taxation. If you don't think you can make your money back - don't build it!
If you don't think a stock is going to go up by at least the tax amount - don't buy it! It's taxing net that brings uncertainty into the equation, and opens the lobby-fest we call exemptions, both on the inputs side and on the calculation of "net" side.
Keep it simple - micro-tax everything.
If you're worried about exports having an embedded cost of taxation, simply raise tariffs sufficiently to offset.
How?
How?
A number of problem scenarios have already been brought up on this very thread - so the question remains - how?
Define "nearly all".
Ah, so there's the first explicit exemption.
Given how much of the "$430 billion dead-weight" is attributable to capital gains issues, this already invalidates point #3.Ah, here we go with more, now the exemption and lobbying door is blown wide open...
Sorry, I don't see this proposal as solving anything at all. It's not going to reduce taxation and it's not going to reduce the cost of compliance.