There are certain sources of income that should not be taxed. See them listed in this Tax Plan:
1. Remove and shred the current tax code at the federal level.
2. Establish seven incremental tax brackets in which everyone pays a percentage of their income, from any and all sources except Social Security, Retirement Savings, and Estates. No taxes shall be levied upon Capital gains, including interest and dividends, until and unless they are converted to cash. All tax returns are to be filed and paid separately and individually by all persons of age 18 years or older. Those persons under the age of 18 will have their returns filed by a responsible person or legal entity.
G. $750,000 and up—20%
Taxes shall be imposed in increments defined in A-G: If income is $100,000.00, the tax paid is $6049.96 (Not $11,000.00). Thus: $1-$14,999.99 @ 2% = 299.98; $15,000-$49,999.99 @ 5% = $1,749.95; $50,000-$99,000 @ 8% = $3,999.92, plus $1.00 @ 11% = $0.11. The sum of these increments is $6049.96, an aggregate of 6.05%. If income is $1,000,000.00, the tax paid is $150,049.43, an aggregate of 15.0%. An income of $10,000.00 would generate a $200.00 tax obligation. Income may be taxed only once. A Tax Return must be filed for every individual who is registered in the tax rolls by way of a Social Security Number, or a Registration Number received by non-citizens who reside and/or work in the USA. Individuals under the age of 18 may have their returns filed by a responsible person or agent.
3. Establish a 1% tax on all sales transactions, whether wholesale or retail, with 0.5% paid by the buyer, and 0.5% paid by the seller. The total of 1% will be paid to the treasury by the seller, with the buyer being charged half the tax at the point of sale. No sales transactions shall be exempt from this tax, including real estate transactions, payment of legal or accounting fees, medical expenses, nor any type of purchase and sale. A $0.25 purchase would generate $0.0025 in total revenue. A $575,000.00 home purchase would generate $5,750.00 in revenue. Both tax amounts would be split 50%-50% between buyer and seller. This tax may be adjusted upward or downward for a designated tax year, according to National Necessity, subject to public debate and approval by Congress. In any event, this tax shall be capped at 2%, with the 1% level being the default tax rate.
4. No tax shall be paid on Social Security income or on withdrawals from retirement savings accounts.
5. There shall be no Estate Tax, nor taxes on life insurance payments, unemployment or disability payments, nor upon withdrawals from savings accounts.
6. Establish a Corporate/Business tax rate of 7% on every $1.00 of income to the corporation/business. No business or organization shall be exempt from this tax, including churches, non-profits, and charitable organizations.
7. No tax deductions, credits or incentives of any kind for the various taxes proposed herein, whether for personal or corporate/business matters.
8. No caps of any kind on income for specific expenses, i.e., taxes must be paid on every dollar, as specified.
9. Congress, working with the Executive Branch and all financial departments, is to establish the percentage of tax revenues to be allocated to each and every expense category, including social and works programs such as Social Security, Medicare and Medicaid. No further adjustment in age should be made for eligibility to receive Social Security and Medicare/Medicaid. Percentages of tax money allocations must be reviewed and established on an annual basis, or as deemed necessary by agreement between the Executive Branch and the Congress. The Federal Budget shall be reviewed and balanced on an annual basis, with monthly monitoring.
10. The first 10% of all revenue collected shall be deposited into a Federal Savings Account, or General Fund. The remaining revenues are to be allocated per article 9, as described. General Fund monies may be used in emergent situations by authority (vote) of the Congress. Service on the national debt shall not exceed 28% of revenue received from taxes. Additional revenue may be generated by the sale of bonds to individuals, and by establishing a national savings bank that would pay a minimum of 3% interest per annum, compounded monthly, to each depositor. A minimum balance of $1,000.00 must be maintained in order to receive interest. These revenue-enhancing programs would be available only to individual taxpayers, not to businesses or corporations.
11. The Legislative and Executive branches are to annually develop and maintain a balanced budget. Debt service payments must fall within the budget limitations. See Article 9.
12. The Legislative and Executive branches are to determine method(s) of collecting the various taxes, including payroll taxes (deductions from wages paid to income taxes only at the above-described incremental rates) and individual filing on a periodic basis. Employers will not be required to match employee withholdings. This tax system shall serve in perpetuity.