Not taxing the first $25,000 of capital gains annually would benefit new and small investors. Eliminate all tax loopholes and increase the maximum rate to 25% for those earning more than $500,000 in capital gains.
Currently super rich benefit from lower capital gains taxes, often paying lower rates in total income than middle class wage earners pay in income tax. Warren Buffet brags that he pays only around 17% in taxes each year, since his income is primarily from capital gains and is not salaried. We should take him up on his challenge to increase his taxes.
Tuesday, August 16, 2011
Tuesday, August 9, 2011
Tax Reform Compromise - Simplified
1. Eliminate taxes on first $25,000 of annual income and first $25,000 of capital gains,
2. Cut loopholes, exemptions, and deductions,
3. Reduce all tax rates with 25% being highest rate,
4. Add National Sales Tax on all products, except food, medical, and housing,
5. Raise Social Security Tax rate to 10% over the next 5-10 years and eliminate contribution ceiling cap.
2. Cut loopholes, exemptions, and deductions,
3. Reduce all tax rates with 25% being highest rate,
4. Add National Sales Tax on all products, except food, medical, and housing,
5. Raise Social Security Tax rate to 10% over the next 5-10 years and eliminate contribution ceiling cap.
Saturday, August 6, 2011
Tax Increase or Tax Cuts?
I'm disturbed that our government and many others believe that paying only the interest on our national DEBT is sufficient and that we only need to keep raising our debt ceiling as we keep creating more spending programs. This past week we learned that our GDP now equals our national DEBT. This means that we need an explosion of economic growth along with a new look at spending and taxation.
If politicians would stop yammering at each other and really work on our national problems, they might start figuring out solutions. Since real solutions would probably cause them to be vilified in the media and every place else, they will probably end in deadlock.
The first thing to do is to take Social Security and Medicare off the table for the time being by increasing SS tax to 10% over the next five to ten years and remove the contribution ceiling. Use SS surpluses to offset Medicare increases temporarily until our national debt is on the mend. This doesn't mean that SS and Medicare are fixed. It just means that no one party can use them to bludgeon another. I can only dream.
The second big thing to do is to create a national sales tax, the entire proceeds of which will go towards paying off the DEBT. This VAT tax would not be added to food, medicines, or services rendered. There are people in our country who legally or illegally have large incomes, but pay little or no taxes. This sales tax would generate income from this group and also from visitors to our country.
The third step is to cut all existing government programs (remember SS and Medicare are not on the table) by 10%. I would like to say that the cut would be averaged, but no one wants their pet program cut, so cut them all by 10%.
Fourth step, everyone, even Press Secretary Jay Carney, realizes that small business not government creates jobs. So tax rates for businesses must be cut. This could be offset by eliminating loopholes and subsidies, but this needs to be done across the board and not favoring one industry or group over another.
Fifth step, I would like to see no income tax levied against the first $25,000 of income or capital gains. This would benefit lower income earners and seniors on fixed income.
If politicians would stop yammering at each other and really work on our national problems, they might start figuring out solutions. Since real solutions would probably cause them to be vilified in the media and every place else, they will probably end in deadlock.
The first thing to do is to take Social Security and Medicare off the table for the time being by increasing SS tax to 10% over the next five to ten years and remove the contribution ceiling. Use SS surpluses to offset Medicare increases temporarily until our national debt is on the mend. This doesn't mean that SS and Medicare are fixed. It just means that no one party can use them to bludgeon another. I can only dream.
The second big thing to do is to create a national sales tax, the entire proceeds of which will go towards paying off the DEBT. This VAT tax would not be added to food, medicines, or services rendered. There are people in our country who legally or illegally have large incomes, but pay little or no taxes. This sales tax would generate income from this group and also from visitors to our country.
The third step is to cut all existing government programs (remember SS and Medicare are not on the table) by 10%. I would like to say that the cut would be averaged, but no one wants their pet program cut, so cut them all by 10%.
Fourth step, everyone, even Press Secretary Jay Carney, realizes that small business not government creates jobs. So tax rates for businesses must be cut. This could be offset by eliminating loopholes and subsidies, but this needs to be done across the board and not favoring one industry or group over another.
Fifth step, I would like to see no income tax levied against the first $25,000 of income or capital gains. This would benefit lower income earners and seniors on fixed income.
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