Social Security and a Fair
Tax
(plus paying off the
national $18 Trillion debt)
Over 20 years ago I submitted a proposal to my then congressman, Arthur Ravenel. He forwarded it to the then head of the ways and means committee, Dan Rostenkowski. He sent me a letter saying it was a great plan but couldn't be done. for over twenty years the American people have been clamoring for a new tax system. I will get it done.There are many ways the government, and society in general, exploit the poor and the elderly in America. None more obvious than the tax system we have and the lack of concern about Social Security. Well, unlike the rich elite and the career politicians, my mom relies on her social security to survive. Many of the poor working class will also want to lean on it for their retirement. Social Security is a promise from the government that we need to make good on, and we need to make it better for all concerned.
My flat tax plan lumps both
SS and income tax into one very simple plan that will fully restore,
grow, and strengthen Social Security, remove ALL the tax burden from
the poor, reduce taxes for everyone to a level that all will support,
and it will pay off the national debt in a matter of 10 years. Sounds
like the typical hollow promises of politicians doesn't it? Well,
let's look;
We will start with a
straight 20% tax on everyone. 15% income and 5% Social Security.
Let's start with some very real facts;
The current economy and unemployment levels will not sustain a cut in taxes that is substantive. However, eventually, it is estimated that the government will need about 7%-10% to operate. This leaves us with half again that much to pay off the debt. Here is the real strength in the plan.
In order to get to the place where we can sustain this tax plan at, and even below, the levels suggested, we have to implement a reduction in the corporate tax rate in America to compete with the global jobs market. Right now, our corporate rate is in excess of 30% (which is enough to spark a tea party) while our competition is charging 12% (and a couple countries even less than that) So, my tax plan starts with a reduction to 13.5%. With that, we add the income tax plan;
Let's start with some very real facts;
The current economy and unemployment levels will not sustain a cut in taxes that is substantive. However, eventually, it is estimated that the government will need about 7%-10% to operate. This leaves us with half again that much to pay off the debt. Here is the real strength in the plan.
In order to get to the place where we can sustain this tax plan at, and even below, the levels suggested, we have to implement a reduction in the corporate tax rate in America to compete with the global jobs market. Right now, our corporate rate is in excess of 30% (which is enough to spark a tea party) while our competition is charging 12% (and a couple countries even less than that) So, my tax plan starts with a reduction to 13.5%. With that, we add the income tax plan;
Every person in America
will receive a refund on their first $25,000. Everyone. If you make
$25,000 or less, you will pay no taxes. You will get a full refund.
This means, if you make $50,000 you will only actually pay 10% in
taxes.
In the beginning, all of the 15% will be needed for the operation of the government. We might even need to change the percentage for SS to 3%. Please understand that 3% is on billions currently not taxed for Social Security. It is more than enough.
As the economy grows, we can eventually move more and more money to pay off the debt. Yes, I know that government can't be trusted to actually do that. But, you and I must make sure they do hold to the plan.
In the beginning, all of the 15% will be needed for the operation of the government. We might even need to change the percentage for SS to 3%. Please understand that 3% is on billions currently not taxed for Social Security. It is more than enough.
As the economy grows, we can eventually move more and more money to pay off the debt. Yes, I know that government can't be trusted to actually do that. But, you and I must make sure they do hold to the plan.
However, every dime will
still count towards your Social Security retirement and/or disability.
So, even if you only make $15,000 a year, and pay nothing into Social
Security, you will still receive it based on your income level, the
same way it is figured now.
Social Security
Every American who earns a paycheck today is taxed at a higher rate than 20% (when you count SS and income tax) This will not be a new or harsher burden. At the end of the year, we will say thank you for letting us use your money and return it to you.
Currently, Social Security
is taxed only on the first $118,000. This will no longer be. So,
within one year Social Security will see a trillion dollars pumped
back into the system. After that, we can reduce the tax rate to 2%.
I believe this nation is
built on the backs of the low income worker. But, America has a
tendency to use them up and then kick them to the curb. We do this
with our veterans and our seniors. No group suffers more than those
who cleaned our toilets and scrubbed our floors. Yet, we owe them as
much as we owe those who build our bridges and highways. Our senior
deserve to be treated with honor and respect and we can do all of
this in a simple and economical way.
I am confident that the
wealthy of America would readily support a small percentage of their
income going to those who helped them make it. It is a reasonable
rate of tax and it will fund and grow SS until the end of days. As a
Christian man, I believe this is in line with what JESUS would have
us do. As an American, I believe it is right to pay the debt we owe
our seniors who held this country together for 50+years.
Income Tax
I know there are many who want a consumption tax. There are three very good reasons for this;
To tax criminals and to entice the rich to put their off shore money back into the US banks, as well as getting rid of the IRS (which is big)
However, I resist this type of tax because of the insane burden it puts on the poor. Every penny in tax paid by the poor and middle class hurts them. Period. Giving more buying power to the poor and middle class does more for the economy and quality of life. So, unless someone can show me a way to exempt the poor and middle class from use taxes, without creating another bureaucracy, I will pass on that.
As far as the IRS, we just need to reign them way in. We need to muzzle that dog and put it in a pen. But, we will still need them to process self employment taxes.
Self employment will work the same way as it always has with the exception of no longer having to file separately for SS. After the cost of business is deducted, 20% is paid in. full refund sent back for the first $25,000.
IN my plan, the goal is to run the government on 10% flat tax and use 5% to pay off the debt. In the end, we should get the 5% gone as the debt is paid off. We should also be able to reduce the SS tax to 2-3%. so the tax rate will fall to 13% after paying off $20 Trillion.
Again, this doesn't get done over night. It will require growing the jobs and business foundation. But, it is very doable. It also relies on honorable men and women in congress who curb spending and stay true to the plans. No one can promise that will happen. But, we have to put plans together as if they will be implemented fully. We can't save this country if we are constantly on guard against the government doing the right thing.
Income Tax
I know there are many who want a consumption tax. There are three very good reasons for this;
To tax criminals and to entice the rich to put their off shore money back into the US banks, as well as getting rid of the IRS (which is big)
However, I resist this type of tax because of the insane burden it puts on the poor. Every penny in tax paid by the poor and middle class hurts them. Period. Giving more buying power to the poor and middle class does more for the economy and quality of life. So, unless someone can show me a way to exempt the poor and middle class from use taxes, without creating another bureaucracy, I will pass on that.
As far as the IRS, we just need to reign them way in. We need to muzzle that dog and put it in a pen. But, we will still need them to process self employment taxes.
Self employment will work the same way as it always has with the exception of no longer having to file separately for SS. After the cost of business is deducted, 20% is paid in. full refund sent back for the first $25,000.
IN my plan, the goal is to run the government on 10% flat tax and use 5% to pay off the debt. In the end, we should get the 5% gone as the debt is paid off. We should also be able to reduce the SS tax to 2-3%. so the tax rate will fall to 13% after paying off $20 Trillion.
Again, this doesn't get done over night. It will require growing the jobs and business foundation. But, it is very doable. It also relies on honorable men and women in congress who curb spending and stay true to the plans. No one can promise that will happen. But, we have to put plans together as if they will be implemented fully. We can't save this country if we are constantly on guard against the government doing the right thing.
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