dealing with taxes, revised

OK, I've had a few months thinking about this. and I've made a few minor changes to my idea about constitutional tax reform.. below are the updates.

5-16-14 a few more tweaks

Constitutional Tax Code Rewrite

30%- tax rate on adjusted incomes over $1million

20%- tax rate on adjusted incomes of $250,001 to $1 million, corporate tax rate on US based revenue, and tax rate on dividends (currently known as the Capital Gains tax)

10%- tax rate for adjusted incomes under $250,000

2% - sales tax on goods until deficit erased, then disappears only to be seen again the year after a deficit returns
0% - tax on savings account interest (the only place money should make money and NOT get taxed)

For the purpose of determining income, the sale of stock is considered income (to be determined by the price the stock is sold at being subtracted by the price it was purchased at, if purchased) Update 5-16-14: I've had a while to think on this.. and perhaps there should be benefits to holding onto stocks for long periods of time, while also treating day trading like the crapshoot it is. The new idea is a tiered approach to capital gains taxes.. I'd prefer to have it be a 10% reduction every year (down to 0 after 10 years of ownership), but you could probably talk me into doing 20% a year (so its 0% in 5 years). but the caveat that the stock has to have been purchased has to remain


Exemption/deductions
Corporate - $20k per documented full time American worker, $10k for documented part time American worker
Personal - $10k per household member ($5k if a family member is over 18, lives in the home, and filing their own return), $2.5k per standard calendar quarter (Jan-Mar, Apr-Jun, Jul-Sep, Oct-Dec) for foster children (example: foster child lives in home from March to August. Deduction for this child would be 7.5k).
Everyone (both personal and Corporate - 25% of total charitable contributions, to be deducted AFTER tax calculated

This would be

·         Fair

·         Transparent

·         Expand the tax base enough while not overburdening the working poor/middle classes

·         Gives multi-national corporations a reason to re-invest in America on top of the rate cut(which would lower the unemployment rate, and create taxpayers at the same time)

·         Create a return every individual tax payer can use without the need for accountants/tax professional/etc.

·         Streamline the IRS, saving even more money

·         Effectively kills every loophole possible (I’m sure there are still a few in a plan like this, but nowhere near the shelters that exist today)

For the purposes of adjustment, the amendment would allow every 10 years for adjustments on the upper limits of each of the individual income brackets, and every 20 for the personal/corporate deductions and charitable deduction tax credit