dealing with taxes

I was going to post this in a yahoo forum, but makes more sense to put it here, then link to it in the post. but it also dovetails nicely into my opening post and how tax reform is very high on my list of things that have to get done


Scrap the tax code (both business and personal, as well as the traditional dividend, capital gains) altogether. replace it with something simpler.  3 personal tax rates (10% for adjusted incomes under 100k, 20% to 1/2 million, 30% over that), 1 business rate (between 20-25%), and a dividend rate of 15%. The capital gains tax is gone. because in my eyes, playing the stock market for gain is as much income as earning a salary, gambling, or other forms of income. the formula for figuring out that income is as simple as other basic math, subtract the price you paid for stock from the amount made from selling it. if you didn't pay for it (as it was awarded as executive compensation or stock splits for example) well them's the breaks isn't it.

Have a total of 2 deductions available on both ends. The deduction I envision both the personal and the business tax rates would share would be a 25% POST tax calculation deduction for non-tithing based (i.e, your church requires a 10% donation of your income to be considered a member of the church in good standing) charitable contributions. Anything made over 10%  however is.

as to my pre-tax deductions. On the personal end, I would have a 10k per family member (with 2 allowable changes to that. One is a 1/2 deduction allowable for a child over 18 still living at home, but filing their own return. The second would be for foster parents, who can see a lot of turnover in children coming into and out of their home , they would see a deduction of $2500 per 3 months up to the full 10k per foster child). The business version would be the same 10k deduction for every documented American worker (With between 20-40% of workers salaries being tax deductible, lets see how quickly you see more 'made in america' labels on goods)

The one other thing I would have in it is that you don't get more than was taken from your check in terms of refunds. if you had $1200 in federal taxes deducted from your check, that's the most you get back. We cannot expect the federal government to live within its means if we cannot.

One thing I think my changes would do is make it so that just about anyone can do their own taxes. and can be done on a 1-3 page form tops

I also envision it as a constitutional amendment, to protect it from the changing winds in Washington.

Would it increase the tax base? Quite possibly. But it also closes pretty much every loophole in the current tax system (making it much harder for large corporations to report billions in profits, then get an eight figure refund from the IRS), and looks to be reasonably fair to everyone. I would like to have someone with a better grasp on the concepts run the numbers on a bigger scale to see if this is as beneficial as I think it could be