The independent platform part 4: taxation

 

I think I want to keep this simple. I have written proposals before and as time goes on it becomes more apparent to me that we do not much hubris in the tax code, we just need something everyone can understand.

If you think we should have a flat tax I disagree and have spelled out the specifics in an earlier post, however the headline is flat tax rate is significantly primarily detrimental to the working and middle class.

Yet if you want something simple like a flat tax and want to stick with the concept of a graduated income tax, here goes. The numerical examples are totally for illustration. They can be adjusted to what works best, however this illustration should give you an idea of a simple graduated income tax code. They are going to be a couple of differences that will be spelled out below the example. Otherwise this should be the code. Just keep it real simple for all.

Income                                              tax rate

$0-25,000.00                                    0%

$25,000.01-150,000.00                  5%

$150,000.01-500,000.00                10%

$500,000.00-2,500,000.00            15%

$2,500,000.01-5,000,000.00         25%

$5,000,000.01 and greater           35%

 

This tax schedule applies to individuals, small businesses, corporations etc. and encompasses all types of income such as earned, passive, short term capital gains, dividends for example.

A couple of caveats:

No social security income is taxed.

Long term capital gains would be moved to 24 months and for people up to $150,000 in income there would be no taxes. For people with income $150,000 to 2,500,000, it would be 10% and then 20% for income over the 2.5 million.

Hedge funds, investment banks etc would be taxed 90% on short term trading, algorithm trading and probably need to go a bit deeper in how this is addressed or define some specific parameters, but basically it has to hurt to manipulate the market for immediate gain.

I am open to some slight changes in the actual numbers once they are plugged into they system, but the general principle would apply.

And if you want a flat tax rate and do not like this instead then you are just a very wealthy individual who doesn’t care about the vast majority of this country.

More platform ideas to come.

Cheers