A Flat Tax Proposal
23 October 2008Lots of people pooh-pooh flat taxes, but let’s consider this idea.
- Let’s let everyone keep 100% of the first $30,000 they make. Since the federal poverty level for a family of four is $20k, that seems fair.
- 50% of all valid charitable contributions are taken off your income. Give $100, take $50 off your income.
- After that, 15% of your income goes to the feds. Period. Done.
That’s it. So if you make $30,000 a year or less, you pay no taxes. If you maks $30,001 in a year, you pay $0.15. If you make $100,000, you pay 15% on the $70,000 ($10,500).
If you make a salary of $100,000 and then make $30,000 profit in the stock market — regardless of whether you bought the stocks the day before or ten years before — your income is $130,000 and you pay 15% on the $100,000: $15,000.
No child tax credits, no capital gains, no marriage-penalty or gain. If you give $100 to a charity, that’s $50 off your income. No deductions for anything except the first $30,000 of income is free. If money changes hands, it’s income. If your dad dies and leaves you $100,000, that’s income.
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