Attention, politicians: I have a proposal for you. I call it the Fair Playing Field Tax Reform Plan. Its multi-faceted. This will be a long post so pay attention. And put your beer down. 1. Scrap the current corporate tax structure. Enact legislation that imposes a 2% (yes, TWO) tax on annual revenue. REVENUE - not profit. If a small business takes in $100,000 then they will pay $2,000 in revenue tax. If a large corporation takes in $100 million in revenue, they will pay 2 million in revenue tax. Or a company that takes in a billion dollars in revenue. They will pay $20 million in revenue tax. No exemptions. No deductions. No loopholes. Simplify, simplify, simplify. Businesses benefit from the same infrastructure and social services as individuals do. They should participate in the upkeep of it. 2. Cut the PERSONAL income tax rate to 2 percent, on everyone, with no income cap. If you make $30,000 per year you will pay $600 in income tax. Over 12 months, this would cost you $50 per month. $12.50 per weekly paycheck. If you make $100,000 per year you will pay $2,000 in personal income tax. This will come directly out of your paycheck, and will automatically be calculated. Self employed would have to actually file taxes; most employers would deduct and make payments monthly. No need to file anymore - no refunds, and never have to pay because you owe. 3. Institute a 3% National Sales Tax. Exemptions would be: ANY food purchases; The first $20,000 of an auto purchase; The first $100,000 of a home purchase. The income stipulations above are to help protect lower income workers and families, since the Earned Income Credit - getting a bigger refund than youve paid in - would end. Nevertheless - millions of Americans will have a far greater amount of disposable income as a result of more American businesses paying their share. In this way, a company like GE cannot make billions in revenue, but yet pay ZERO in taxes because of loopholes, etc. Taxes on capital gains? Eliminate them. This will spur a huge amount of investment in America, especially from offshore investors. Why not? The money to be made will buy second homes. Boats. Expensive cars. Dom Perignon. You know, stuff that will be subject to the national sales tax. The more you spend, the more taxes you will pay. The NST will also catch those under the table individuals who spend money - but do not pay taxes. So - what say you? This plan will spur economic growth, give more money back to American workers, and eliminate loopholes that have allowed multi-million/billion dollar companies to get away with paying NO taxes for far too long. I defy any politician or CEO to explain how TWO PERCENT of revenue is unfair. It is constant, and can therefore be taken into account in business planning.
Posted on: Tue, 20 Jan 2015 03:44:25 +0000