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Superfreak
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For Desh... AGAIN...
Start with a standard deduction of $30k (adjusted for inflation annually) for each adult and then tax every dollar over that $30k at 20%. This is simple, easy to understand, fair and progressive. It protects the low-income individuals and couples from paying federal income taxes. It provides the middle-income families a lower effective tax rate than the wealthy. This plan would encompass ALL income, including earned income, capital gains and dividend income.
A person making $30k pays an effective rate of 0%.
A person making $50k pays an effective rate of 8%.
A person making $100k pays an effective rate of 14%.
A person making $200k pays en effective rate of 17%.
A person making $1mm pays an effective rate of 19.4%
Everyone has the same deduction and takes it. Which causes the effective tax rate to increase the more you make.
To reduce the national debt I would propose we add an additional temporary bracket to the flat tax. Every dollar over $1 million (again adjusted for inflation annually) would be taxed at 30% rather than 20%. The additional 10% would be mandated to pay down the debt.
There is no corporate tax. Eliminate it. We can tax the money earned via capital gains taxation and distributions to shareholders. The only other way the money can come out of the firm is via salary/benefits... which would also be taxed. Done.
We would eliminate 70k+ pages of loopholes/deductions/subsidies...
Quote from Cypress:
"Scientists don't use "averages". Maybe armchair supertools on message boards ascribe some meaning to "averages" between two random data points. And maybe clueless amatuers "draw a straight line" through two random end data points to define a "trend". Experts don't.
They use mean annual and five year means in trend analysis. Don't tell me I have to explain the difference to you. "
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super just called this a flat tax.