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Wednesday, June 19, 2013

Abolish IRS...Flat Tax vs National Consumer Tax


We are hearing a lot of diatribes by the Talking Heads/Analyst on MSM as well as Congress and Senate members about abolishing the IRS and replacing it with a simple Flat Tax or National Consumer Tax.
First and foremost if the IRS is abolished a tax receiving entity would have to be established within the U.S.Department of Treasury...It would definetly be smaller and less complex than the IRS is with it's over bloating of agents,attorneys and nationwide support personnel...it could be housed within the Department of  the Treasury in Washington, DC eliminating nationwide buildings/personnel at a  tremendous cost savings.

Let us now address a Flat Tax vs a National Consumer Tax:

Flat Tax..to be fair and equitable one percentage rate is not fair for all....A tax rate must reflect the ability of the payer to pay without going without essential daily necessities .Therefore a suggestion would be as follows, with a not to exceed rate inclusion:

0% on those earning $20000.00 and less ...in todays market this is basically the poverty rate.
.
.05% for those earning $200001.00-40000.00

.10% for those earning $40001.00-80000.00

.15% for those earning $80001.00-100000.00

.20% for those earning $100001.00-250000.00

.25% for those earning $250001.00-1,000,000.00

.30% for those earning  $1,000,001.00-500,000,000.00 ...corporations included

.35% for those earning $500,000,001.00 and over... corporations included !

National Consumer Tax: This is a complicated issue as we already have national sales as well as federal excise tax along with local and state sales and other hidden taxes,sin taxes etc...to incorporate this type of tax without doing away with all other sales and excise taxes would bring the tax rate for all way above a 60% rate...this is unacceptable for all!

This would also have to be  broken down into tax rates to be fair and equitable for all, suggestion as follows:

0% on all daily lifeline and necessary products such as food,shelter(1 home),utilities,fuel,basic transportation (no more than 2 vehicles) and medical supplies,drugs and treatment.

.07% on all other daily use products such as more than 2 cars,clothing,household items,entertainment,toys,luxury items under $2500.00

.20% on luxury items such as more than 1 home,and utilities for such,more than 2 cars,luxury items in excess of $2500.00-50,000.00 such as boats,aircraft etc.

.30% on all luxury items $50,001.00 and over!

This is just a suggestion and in my opinion  is as good as any other on the table to date...and it is a little flexible...as long as kept simple and fair! If you noticed I kept it simple and without ranting over 20,000 pages to confuse the reader! Life is short and should be kept simple and fair to all.

cue the song: 'The Taxman'
http://www.youtube.com/watch?v=y8OgkjcW0g4














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