Thursday, October 27, 2011

Reforming the Tax Code : Overview

Here is my "plan" for fixing the US tax code by putting in a new tax code that is progressive (Should please Democrats), respects the privacy of tax payers (Should please Libertarians and Constitutionalists), and very pro American business (should please Republicans), and eliminates tons and tons of paperwork (should please Environmental types).


At the Federal Level
Eliminate all Payroll Related taxes (reasons), the Capital Gains tax (reasons), the Corporate tax (reasons) and basically anything else other than a Direct Tax on the States (details), an Import tax (details), and a new Investment Exchange tax (details).

At the State Level
Eliminate all Payroll related taxes (reasons), all Sales Tax (reasons), any Corporate tax (reasons), and ALL Tolls (reasons) and basically anything else other than a Direct tax on the Counties (details).

At the County (or City) Level
Eliminate any sort of vehicle and pet fees, cell phone usage fees, local Sales Tax and basically anything else other than the Property Tax (details).

To Sum up
So, to restate that in reverse, the current Property Tax system that is currently the bread and butter of basically all local governments in America today would become the only tax that most Americans ever think about.  It would have to go up significantly, BUT all other taxes you are paying would go away so it shouldn't be any more burdensome..

The States would end up collecting their money from the county governments which means a large portion of your property tax would end up going to the state).

And the nation would use the Import tax and the Investment Exchange tax to "engineer" the economy, and a direct tax on the states to fill the budget gap if those two taxes aren't sufficient.   Which means that, in the end your property tax pays for basically everything.

If you missed the link above, here is a link to my post about why the Property Tax is the "least bad".

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