OK about the dozenth time I've revised my tax plan. It is weird, I don't think I have ever even done my own taxes and I am waking up at 5am doing this. Zephlin I think you'll like these two little carrots. Decided against sales tax on services. Too much temptation for people to cheat. On capital gains decided to go 0% on ipo's and anytime a company releases shares to raise capital. All other times it will be 20%. Interesting comparison to 999 plan. Mine is more pro growth, and progressive. About the top 7% of the population make over $100,000 a year, almost half the national income, and under my plan they have a higher burden for government revenue compared to the 999 plan where the 93% who make less than $100,000 and have the other half of the national income are given the greater burden for revenue. Both plans are designed to greatly simplify tax code and be extreme pro growth and job creation.
Scrap current tax code. New net income tax: No deductions, no corporate tax, no payroll taxes, no SSI tax, no estate tax, no joint filings.
0% on income below $20,000, 10% on any additional income between $20,000-$100,000, 30% on any additional income between $100,000-$1,000,000, and 40% on any additional income above $1,000,000. So someone making 1.2 million would pay in federal taxes ($20,000 X 0)+(80,000x.10)+ (900,000 X .30) + (200,000 X .40)=$358,000.
What the rates will look like on net income:
$20,000 income...0%
30,000................3.3%
40,000................5%
50,000................6%
60,000................6.7%
70,000................7.1%
80,000................7.5%
90,000................7.8%
100,000...............8%
200,000...............19%
500,000...............26%
1,000,000.............28%
1,500,000.............32%
2,000,000.............34%
1,000,000,000.........39.9%
Capital gains rate of 0% on ipo's and whenever a company issues more shares on the equity market to raise capital. All other times the capital gains rate will be 20%.
10% federal retail sales tax on goods with exemptions on medical, whole foods in grocery stores, and rent.