A Proposal To Streamline Income Taxes

I’m going to lay out a proposal for a streamlined tax system. After the proposal, I will lay out the facts I used to determine the proposal.

It’s true that I’m not a math wizard, which is precisely why I’m throwing this out here. If I can come up with something reasonable and rational — why haven’t the experts raised the bar?

Americans citizens making less than $80,000/year income tax at 10%.

American citizens making $81,000-$125,000/year income tax at 20%.

American citizens making $126,000- $250,000/ year income tax 25%.

American citizens making $251,000-$400,000/year income tax 35%

American citizens making $401,000-$550,000/year income tax 38%

American citizens making $551,000-$750,000/year income tax 40%

American citizens making $751,000-$999,000/year income tax 45%

American citizens making $1,000,000- $5,000,000/year income tax 48%

American citizens making $5,000,001- $20,000,000/year income tax 50%

American citizens making $20,000,001+ income tax 55%

Only hourly wages should be taxable income. Tips should not be taxed.

Eliminate inheritance tax. The federal government should be profiting from anyone’s death.

Any inherited assets, including real estate will be taxed as regular income or property on the recipient’s tax return that fiscal year.

Capital gains flat tax 20%.

Dividends are taxed regularly as income on recipient’s tax return for that fiscal year.

There should be zero deductions for property taxes.

No parent may claim an adult child as a dependent unless they are disabled or otherwise actually dependent on the parent for support. Parents need to be prohibited from using their adult children as tax shelters.

No tax credit or special rights/deductions should be given on the basis of marriage.

Minor children should be able to be claimed as dependents of both parents whether married or divorced if both parents retain parental rights and have joint custody of the dependent child.

Caretakers should be permitted to claim elderly parents as dependents.

Standard deduction rate for all dependents $5000.

Maximum credit for charitable contributions: $200,000.

All tuition, books, and class materials (Not beer, guys.)for higher education should be deductible.

Foreign citizens working in the US legally making less than $80,000/year income tax at 15%.

Foreign citizens working in the US legally making $81,000-$125,000/year income tax at 25%.

Foreign citizens working in the US legally making $126,000- $250,000/ year income tax 30%.

Foreign citizens working in the US legally making $251,000-$400,000/year income tax 40%

Foreign citizens working in the US legally making $401,000-$550,000/year income tax 45%

Foreign citizens working in the US legally making $551,000-$750,000/year income tax 52%

Foreign citizens working in the US legally making $751,000-$999,000/year income tax 58%

Foreign citizens working in the US legally making $1,000,000- $5,000,000/year income tax 65%

Foreign citizens working in the US legally making $5,000,001- $20,000,000/year income tax 70%

Foreign citizens working in the US legally making $20,000,001+ income tax 72%

All religious organizations should be taxed 30% of their gross revenue and should pay property taxes.

Donations to religious organizations should remain deductible with the $200,000 limit.

Native Americans living on reservations should continue to be exempt from paying income taxes.

Descendants of American slaves should have the option of filing a form that verifies their origins and not pay more than 10% income tax.

Corporate taxes-

US companies should be penalized for evading taxes through offshore accounts and outsourcing. Any US corporation outsourcing over 25% of their employees should be taxed at 35%.

Any cruise or shipping companies based in the US who flag their ships in other countries should be taxed at 45%.

Corporate taxes basically need to be simplified to the point that criminals aren’t enabled to crime.

I am making this proposal based on the ever popular notion of “the good old days of prosperity” during the 1950s. I adjusted tax rates based on Internal Revenue Tax Code of 1954. It was one of the highest tax rates in our history. I also referenced current income tax rates for 2020. I adjusted accordingly.

Without the revenue generated by the 1954 tax code, we wouldn’t have our interstate system.

Wages have not increased at a rate that supports a reasonable living. The Republican death grip on Congress for the majority of the last 30 years has drastically impeded our country’s ability to make progress.

Wages, income, and equality will be addressed in a separate article.

Currently, the IRS costs roughly 11 BILLION dollars a year to operate. With a simplified, more direct tax system it would not require such a massive budget. Simplification would also make it more difficult for people to commit crimes. There are entirely too many schedules, forms, and worksheets. Republicans made US revenue an industry. That’s not what the Founders had in mind.

Taxes are how roads and bridges get repaired, libraries maintained, the postal service funded, air traffic controlled. If we innovate, streamline, and put emphasis on fairness and equality, our whole country benefits, not just the fortunate few.