Proposal for fair taxation

[jax-native68]

1. All income taxes for individual persons/married couples and corporations will be levied on gross income over the amount equal to the poverty level income for a single-person household.  No deductions or exemptions will be allowed, but the government can grant vouchers that can be used to pay taxes providing you spend money on something the government wants you to spend money on- health insurance or a retirement account for example.

2. Each taxpayer will pay an amount in taxes that is equal to the percentage of the gross national income that accrued to the taxpayer for the previous calendar year.  If your income for last year equaled x% of the total gross income for all taxpayers last year, then you pay x% of this year's income in taxes.

3. Current tax-exempt corporations and organizations will retain their exemption.

[buckethead]

As long as I get to be one of those tax exempt entities mentioned in line 3, I'm on board.

Some are, after all, more equal than others.

[Dog Walker]

Number 3 would also make the number of "non-profit" organizations and funny "churches" explode.

[jax-native68]

Number 3 would also make the number of "non-profit" organizations and funny "churches" explode.

We have this kind of thing already.  But what I propose would put a stop to some of it.  Basing taxation on gross income and not allowing deductions would put a stop to a lot of "businesses" that people set up to support their hobbies so they can get tax write-offs.

[Ocklawaha]

Tax the non profits, churches included and you'll double the effect of the next natural disaster in this country. As one who has worked in several 'national disasters' with the Red Cross I can tell you the efforts of the government alone is like pissing in the ocean.

OCKLAWAHA

[Ajax]

but the government can grant vouchers that can be used to pay taxes providing you spend money on something the government wants you to spend money on

No thank you. 

[Ajax]

Did you know that in Denmark, the poorest 30 percent pay 14.1 percent of all taxes and the richest pay 48.7 percent, while in the United States, the poorest 30 percent pay just 6.1 percent of all taxes and the richest 30 percent pay a whopping 65.3 percent? The surprising thing is not that the richest pay most of the taxes but that the U.S. has nearly the most progressive tax system in the world, while the Scandinavian countries have about the least progressive tax systems, contrary to commonly held belief.

http://www.washingtontimes.com/news/2011/aug/30/growing-the-economy-for-dummies/

[jax-native68]

Basing taxes on gross income would shrink the money supply to a lot of what I consider to be illegitimate charities.  The poor and middle class donate to churches and organizations like the Red Cross out of the goodness of their hearts and because they sincerely believe in what these non-profit organization do.  Under the present tax code rich people donate to things like art museums because they want a tax shelter.

[jax-native68]

but the government can grant vouchers that can be used to pay taxes providing you spend money on something the government wants you to spend money on

No thank you. 

Consider it a way to privatize Social Security.  Let employers pay money into a retirement account for each employee and then count that money as taxes paid for FICA. 

[jax-native68]

Did you know that in Denmark, the poorest 30 percent pay 14.1 percent of all taxes and the richest pay 48.7 percent, while in the United States, the poorest 30 percent pay just 6.1 percent of all taxes and the richest 30 percent pay a whopping 65.3 percent? The surprising thing is not that the richest pay most of the taxes but that the U.S. has nearly the most progressive tax system in the world, while the Scandinavian countries have about the least progressive tax systems, contrary to commonly held belief.

http://www.washingtontimes.com/news/2011/aug/30/growing-the-economy-for-dummies/

Part of the reason why I am proposing this.  Something like 45% of U.S. households pay zero in federal income taxes.  So what incentive do the people living in these households have to support federal budget cuts?  Equalize the tax burden and fewer people will be willing to demand government handouts.

[KuroiKetsunoHana]

pretty sure the poorest 30% in the US are a lot poorer than the poorest 30% in denmark.

[Garden guy]

1. All income taxes for individual persons/married couples and corporations will be levied on gross income over the amount equal to the poverty level income for a single-person household.  No deductions or exemptions will be allowed, but the government can grant vouchers that can be used to pay taxes providing you spend money on something the government wants you to spend money on- health insurance or a retirement account for example.

2. Each taxpayer will pay an amount in taxes that is equal to the percentage of the gross national income that accrued to the taxpayer for the previous calendar year.  If your income for last year equaled x% of the total gross income for all taxpayers last year, then you pay x% of this year's income in taxes.

3. Current tax-exempt corporations and organizations will retain their exemption.

Number 3 should end now. Churches and nonprofit religious organizations are a perfect place to hide money and it's happening everywhere. Closed books?...privacy?....no wonder there's one on every corner...Watch donations drop like a brick when they are'nt tax exempt...wonder how these churches get sooo big and control thier areas?...makes ya go hmmm??? I wonder..

[JeffreyS]

1. All income taxes for individual persons/married couples and corporations will be levied on gross income over the amount equal to the poverty level income for a single-person household.  No deductions or exemptions will be allowed, but the government can grant vouchers that can be used to pay taxes providing you spend money on something the government wants you to spend money on- health insurance or a retirement account for example.

2. Each taxpayer will pay an amount in taxes that is equal to the percentage of the gross national income that accrued to the taxpayer for the previous calendar year.  If your income for last year equaled x% of the total gross income for all taxpayers last year, then you pay x% of this year's income in taxes.

3. Current tax-exempt corporations and organizations will retain their exemption.

Number 3 should end now. Churches and nonprofit religious organizations are a perfect place to hide money and it's happening everywhere. Closed books?...privacy?....no wonder there's one on every corner...Watch donations drop like a brick when they are'nt tax exempt...wonder how these churches get sooo big and control thier areas?...makes ya go hmmm??? I wonder..

So foolish, I am sure there are shenanigans going on.  You know what else is going on 99% of what Americans give in money and time to charity and efforts to make our country and world a better place go on in the non-profits and Churches.  Lots of times that money and time is given to gain some tax advantage but society still nets way ahead on this so who cares.

[Dog Walker]

pretty sure the poorest 30% in the US are a lot poorer than the poorest 30% in denmark.

And the rich aren't so filthy rich.  He should compare the tax RATES not the taxes collected.  Denmark doesn't have the income gap that we do.

[JeffreyS]

pretty sure the poorest 30% in the US are a lot poorer than the poorest 30% in denmark.

And the rich aren't so filthy rich.  He should compare the tax RATES not the taxes collected.  Denmark doesn't have the income gap that we do.

The Rich in this country are pretty filthy rich.


List of countries by distribution of wealth
From Wikipedia, the free encyclopedia

List of countries by distribution of wealth[1] including Gini coefficients. The higher a Gini coefficient the more unequal is the distribution of wealth. The worldwide Gini coefficient of 89.2 e. g. means that one of 10 persons owns 99%, while the others share the remaining percent.[2] If the world's wealth was $1000, then one person would own $990 and the other nine owning $1.11 each on average.
Rank↓    Country↓    Gini-Index [%]↓    Adult population [million]↓    Adult pop. [%]↓    Wealth per adult [$]↓    Wealth [%]↓
-    World    89.2    3,697.518    100    33,893    100
1     Japan    54.7    100.933    2.7    227,600    18.3
2     China    55.0    842.063    22.8    3,885    2.6
3     Spain    57.0    32.165    0.9    86,958    2.2
4     South Korea    57.9    33.242    0.9    41,777    1.1
5     Italy    60.9 (61)[3]    46.416    1.3    122,250    4.5
6     Finland    62.1 (68)[3]    3.328    0.09    37,171    0.15
7     Australia    62.2    13.690    0.4    94,712    1.0
8     Netherlands    65.0    12.046    0.3    144,406    1.4
9     Taiwan    65.5    15.476    0.4    105,613    1.3
10     Bangladesh    66.0    66.483    1.8    2,424    0.1
11     Germany    66.7 (78)[3]    64.810    1.8    109,735    5.7
12     India    66.9    570.595    15.4    1,989    0.9
13     Vietnam    68.2    44.025    1.2    1,986    0.1
14     Canada    68.8 (75)[3]    22.764    0.6    95,606    1.7
15     United Kingdom    69.7 (66)[3]    43.871    1.2    169,617    5.9
16     Pakistan    69.8    67.968    1.8    2,633    0.1
17     Russia    69.9    107.493    2.9    4,140    0.4
18     Thailand    71.0    40.160    1.1    6,717    0.2
19     Turkey    71.8    40.391    1.1    16,218    0.5
20     France    73.0    44.358    1.2    114,650    4.1
21     Niger    73.6    51.431    1.4    862    0.0
22     Argentina    74.0    23.307    0.6    40,225    0.7
23     Mexico    74.9    56.132    1.5    23,305    1.0
24     Indonesia    76.4    124.445    3.4    2,421    0.2
25     Sweden    77.6 (89)[3]    5.546    0.15    83,918    0.6
26     Brazil    78.4    104.213    2.8    15,958    1.3
27     United States    80.1 (84)[3]    202.865    5.5    201,319    32.6
28     Switzerland    80.3    5.497    0.1    222,641    1.0

pretty sure the poorest 30% in the US are a lot poorer than the poorest 30% in denmark.