You are elected POTUS - What is Your Tax Plan?

[DC Al Fine]

Similar concept as this thread

You are the new POTUS with a strong mandate and excellent congressional support. What changes do you make to the tax system.

[The world will shine with light in our nightmare]

Taking ideas from this page:

• Return the estate tax to Clinton-era levels
• Return investment taxes to Clinton-era levels
• Allow expiration of Bush tax cuts for income above $250,000 a year
• Payroll tax: Subject some incomes above $106,000 to tax
• Millionaire's tax on income above $1 million
• Remove loopholes and reduce rates (Bowles-Simpson)
• Bank Tax (tax banks based on the size of their holdings and the perceived riskiness of those holdings)

[DC Al Fine]

Taking ideas from this page:

• Return the estate tax to Clinton-era levels
• Return investment taxes to Clinton-era levels
• Allow expiration of Bush tax cuts for income above $250,000 a year
• Payroll tax: Subject some incomes above $106,000 to tax
• Millionaire's tax on income above $1 million
• Remove loopholes and reduce rates (Bowles-Simpson)
• Bank Tax (tax banks based on the size of their holdings and the perceived riskiness of those holdings)
  

Could you give some details about the last one? (Rates, how to decide how risky something is etc.)

[opebo]

[LastVoter]

One time wealth tax.

[opebo]

One time wealth tax.

Yeah that's what I meant by my photo.  Well, that and an immediate post-taxation punishment for crimes.

[JerryArkansas]

• Make new Tax Brackets.  One at 25, 15, and 5.
• Cut most tax deductions.  Leave mortgage and Charity, but reform charity.
• Lower Corporate Tax rate to 25%.
• Payroll tax at 4% at all levels.
• Not Taxes, but Cut Social Security for People above an income of 1 million Dollars, also cut Medicare, medicaid.
• Allow Corporations to repatriate money at 10% tax rate for 2 years, and if money is taken back overseas before then, a 35% profit fine for 5 years going towards things.
• Remove IRS, and move all duties to the Treasury department.

[Del Tachi]

1.  Make the Bush tax rates for those making under $500,000 permanent
2.  Make the research and experimentation tax credit permanent
3.  Eliminate taxes on capital gains
4.  Limit the home mortgage interest deduction and deductions for charitable donations for filers with incomes above $500,000
5.  Raise and "lock-in" social security taxes so that they cover 90% of all wages, mandate participation for all future state and federal employees
6.  Institute a 7.4% "surtax" on incomes above $3 million a year
7.  Start taxing fringe benefits as regular income
8.  Repeal the national gasoline tax, replace with a VMT with higher rates being applied to commercial vehicles
9.  Institute a Washington, D.C. commuter tax
 

[Redalgo]

1. Raise income taxes on each bracket and include capital gains as income
2. Retain the payroll tax but plan to phase it out along with Social Security
3. Do away with all other sorts of federal tax, deductions, and exemptions (except for charity)
4. Explore the possibility of harmonizing all state (but not municipal) taxes
5. Offer terms for opting out of paying tax - the untaxed may purchase state goods and services
6. Index all tax brackets to inflation

[DC Al Fine]

1) Disallow deduction after very high threshold (say $500k)
2) Remove the mortgage interest rate deduction
3) Shift deductions associated with health insurance to individuals
4) Institute a small tariff on all imported goods (5-10%).
5) Make EITC automatic.

[Maxwell]

1. Cut deductions, exemptions, tax loopholes significantly
2. Cut Income Tax Rates to this:
5%   $0 – $10,000
10%   $10,000 - $50,000
20%   $50,000 - $100,000
25%   $100,000 - $400,000
30%   $400,000 ->
3. Significantly cut corporate taxes.
4. Phase out Social Security into a Privatized Accounts.

[tpfkaw]

Blanket pardon of all Americans and applicable foreign citizens for non-payment or evasion of all taxes, fees, excises, tariffs, duties, imposts, tithes, capitations, assessments, charges, tributes, and all other methods of raising revenue which carry the force of law.

[○∙◄☻¥tπ[╪AV┼cVê└]

Tax hikes for the rich, estate, and unearned income. Would also raise gas and cigarette taxes. Go after loopholes including offshoring loopholes like the one where Apple offshored their profits and then sent them back to the US. Would cut taxes on the poor.

[barfbag]

I'd simplify the brackets to 15%, 19.5%, 23.5%, and 28%. The corporate tax would be cut in half to bring back jobs from overseas. Taxes I'd move to abolish would be the death tax, marriage tax, and unconstitutional double taxation of capital gains taxes. Spending would be evenly cut by 20% to help balance our deficits.

[TNF]

Income tax
$0 - 28,282........00%
$28,283 - 57,164.......08%
$57,165 - 85,746.......10%
$85,747 - 114,328.......25%
$114,329 - 142,911......29%
$142,912 - 171,493......32.5%
$171,494 - 200,075......36%
$200,076 - 228,657......40%
$228,658 - 257,239......43%
$257,240 - 285,822......46%
$285,823 - 314,404......49%
$314,405 - 371,568......52%
$371,569 - 457,315......55%
$457,316 - 543,061......58%
$543,062 - 628,808......61%
$628,809 - 714,555......63%
$714,556 - 857,466......66%
$857,467 - 1,000,377.......69%
$1,000,378 - 1,143,288....72%
$1,143,289 - 1,286,199....75%
$1,286,200 - 1,429,110....83.5%
$1,429,111 - 2,143,665....89%
$2,143,666 - 2,858,220....92%
$2,858,221+..................95%

Capital Gains tax
Tax the same as regular income.

Corporate tax
Abolish in favor of a financial transactions tax.

Estate tax
Reform into a graduated tax upon inheritance.

Payroll tax
End the payroll tax cap, force high earners to pay into the system.

In addition, implement a universal basic income of $28,282 per individual per year.

[DC Al Fine]

That's oddly specific TNF.

[traininthedistance]

To (mostly, at least) repeat what I said in the other said:

• Return income tax, estate tax, and capital gains tax to pre-Clinton rates. Put a cap on deductions (somewhere between $30k and $50k).
• Expand the EITC into a guaranteed minimum income program that pushes every household out of poverty.
• Replace the corporate income tax with a carbon tax.
• Raise the payroll tax cap to $250k
• Increase the federal excise tax on gasoline tenfold (i.e. to $1.84 per gallon).
• Index all taxes and tax brackets to inflation

Pretty much this, with one exception.  I'm not sure I could support a cap on deductions that was quite that low, or at least I'd like to exempt charitable contributions from that cap.  My worry is that it would have a pretty strong adverse effect on arts and cultural organizations.  Everything else, though, looks about perfect.

[Maxwell]

Income tax
$0 - 28,282........00%
$28,283 - 57,164.......08%
$57,165 - 85,746.......10%
$85,747 - 114,328.......25%
$114,329 - 142,911......29%
$142,912 - 171,493......32.5%
$171,494 - 200,075......36%
$200,076 - 228,657......40%
$228,658 - 257,239......43%
$257,240 - 285,822......46%
$285,823 - 314,404......49%
$314,405 - 371,568......52%
$371,569 - 457,315......55%
$457,316 - 543,061......58%
$543,062 - 628,808......61%
$628,809 - 714,555......63%
$714,556 - 857,466......66%
$857,467 - 1,000,377.......69%
$1,000,378 - 1,143,288....72%
$1,143,289 - 1,286,199....75%
$1,286,200 - 1,429,110....83.5%
$1,429,111 - 2,143,665....89%
$2,143,666 - 2,858,220....92%
$2,858,221+..................95%

a 95% top bracket? I know you're the leading person on this forum on labor issues, but 95% top bracket is way over the top and would absolutely murder the economy.

[Mr.Phips]

Income tax
$0 - 28,282........00%
$28,283 - 57,164.......08%
$57,165 - 85,746.......10%
$85,747 - 114,328.......25%
$114,329 - 142,911......29%
$142,912 - 171,493......32.5%
$171,494 - 200,075......36%
$200,076 - 228,657......40%
$228,658 - 257,239......43%
$257,240 - 285,822......46%
$285,823 - 314,404......49%
$314,405 - 371,568......52%
$371,569 - 457,315......55%
$457,316 - 543,061......58%
$543,062 - 628,808......61%
$628,809 - 714,555......63%
$714,556 - 857,466......66%
$857,467 - 1,000,377.......69%
$1,000,378 - 1,143,288....72%
$1,143,289 - 1,286,199....75%
$1,286,200 - 1,429,110....83.5%
$1,429,111 - 2,143,665....89%
$2,143,666 - 2,858,220....92%
$2,858,221+..................95%

a 95% top bracket? I know you're the leading person on this forum on labor issues, but 95% top bracket is way over the top and would absolutely murder the economy.

It didnt murder the economy when it actually existed in the 1940's and 1950's. 

[Mr.Phips]

-Create a new 44% bracket for income above $1,000,000 a year for individuals($2,000,000 for couples).
-Remove the Social Security tax wage cap completely, but continue to calculate benefits based on the old $110,000 cap(indexed to inflation).
-Repeal medicaid, SCHIP, ect. and extend Medicare to every American paid for by a 1.5% tax on AGI. 
-Limit itemized deductions to $70,000 a year($140,000 for couples).  This would be indexed to inflation of course.
-Tax capital gains and dividends as ordinary income.
-Cut the corporate tax rate to a flat 13% with fewer deductions. 

[TNF]

Income tax
$0 - 28,282........00%
$28,283 - 57,164.......08%
$57,165 - 85,746.......10%
$85,747 - 114,328.......25%
$114,329 - 142,911......29%
$142,912 - 171,493......32.5%
$171,494 - 200,075......36%
$200,076 - 228,657......40%
$228,658 - 257,239......43%
$257,240 - 285,822......46%
$285,823 - 314,404......49%
$314,405 - 371,568......52%
$371,569 - 457,315......55%
$457,316 - 543,061......58%
$543,062 - 628,808......61%
$628,809 - 714,555......63%
$714,556 - 857,466......66%
$857,467 - 1,000,377.......69%
$1,000,378 - 1,143,288....72%
$1,143,289 - 1,286,199....75%
$1,286,200 - 1,429,110....83.5%
$1,429,111 - 2,143,665....89%
$2,143,666 - 2,858,220....92%
$2,858,221+..................95%

a 95% top bracket? I know you're the leading person on this forum on labor issues, but 95% top bracket is way over the top and would absolutely murder the economy.

It didnt murder the economy when it actually existed in the 1940's and 1950's. 

And actually, the economy performed rather well. My tax brackets are a slightly modified, inflation adjusted version of those enacted in 1942 by Congress.

[Mr.Phips]

Income tax
$0 - 28,282........00%
$28,283 - 57,164.......08%
$57,165 - 85,746.......10%
$85,747 - 114,328.......25%
$114,329 - 142,911......29%
$142,912 - 171,493......32.5%
$171,494 - 200,075......36%
$200,076 - 228,657......40%
$228,658 - 257,239......43%
$257,240 - 285,822......46%
$285,823 - 314,404......49%
$314,405 - 371,568......52%
$371,569 - 457,315......55%
$457,316 - 543,061......58%
$543,062 - 628,808......61%
$628,809 - 714,555......63%
$714,556 - 857,466......66%
$857,467 - 1,000,377.......69%
$1,000,378 - 1,143,288....72%
$1,143,289 - 1,286,199....75%
$1,286,200 - 1,429,110....83.5%
$1,429,111 - 2,143,665....89%
$2,143,666 - 2,858,220....92%
$2,858,221+..................95%

a 95% top bracket? I know you're the leading person on this forum on labor issues, but 95% top bracket is way over the top and would absolutely murder the economy.

It didnt murder the economy when it actually existed in the 1940's and 1950's. 

And actually, the economy performed rather well. My tax brackets are a slightly modified, inflation adjusted version of those enacted in 1942 by Congress.

Your top rates are definitely much higher than I would go, but you are right about the performance of the economy.  As much as I disagree with him on most other issues, I think that Art Laffer wasn't the far off with his curve, which is why I have the top tax rate equaling about 50% when taking payroll taxes into account.  As much as he won't admit it, he DID say the peak of his curve was 50% in his original diagram and that is why Reagan set the top rate at 50% after meeting with Laffer in 1981.

[Maxwell]

Income tax
$0 - 28,282........00%
$28,283 - 57,164.......08%
$57,165 - 85,746.......10%
$85,747 - 114,328.......25%
$114,329 - 142,911......29%
$142,912 - 171,493......32.5%
$171,494 - 200,075......36%
$200,076 - 228,657......40%
$228,658 - 257,239......43%
$257,240 - 285,822......46%
$285,823 - 314,404......49%
$314,405 - 371,568......52%
$371,569 - 457,315......55%
$457,316 - 543,061......58%
$543,062 - 628,808......61%
$628,809 - 714,555......63%
$714,556 - 857,466......66%
$857,467 - 1,000,377.......69%
$1,000,378 - 1,143,288....72%
$1,143,289 - 1,286,199....75%
$1,286,200 - 1,429,110....83.5%
$1,429,111 - 2,143,665....89%
$2,143,666 - 2,858,220....92%
$2,858,221+..................95%

a 95% top bracket? I know you're the leading person on this forum on labor issues, but 95% top bracket is way over the top and would absolutely murder the economy.

It didnt murder the economy when it actually existed in the 1940's and 1950's. 

In terms of income tax a 95% tax bracket brings in the same amount of revenue as the 40% tax bracket even at its highest point. I'm not quite sure how that's possible, but I think I see a lining there of why, more breaks in the tax code then than there are now, but maybe I'm wrong. Of course, this was before Business taxes and fees had any real effect on revenue, as well taxes involving social services.





Although you already said this, I would like to bring these graphs from Business Insider nevertheless.

[Mr.Phips]

Income tax
$0 - 28,282........00%
$28,283 - 57,164.......08%
$57,165 - 85,746.......10%
$85,747 - 114,328.......25%
$114,329 - 142,911......29%
$142,912 - 171,493......32.5%
$171,494 - 200,075......36%
$200,076 - 228,657......40%
$228,658 - 257,239......43%
$257,240 - 285,822......46%
$285,823 - 314,404......49%
$314,405 - 371,568......52%
$371,569 - 457,315......55%
$457,316 - 543,061......58%
$543,062 - 628,808......61%
$628,809 - 714,555......63%
$714,556 - 857,466......66%
$857,467 - 1,000,377.......69%
$1,000,378 - 1,143,288....72%
$1,143,289 - 1,286,199....75%
$1,286,200 - 1,429,110....83.5%
$1,429,111 - 2,143,665....89%
$2,143,666 - 2,858,220....92%
$2,858,221+..................95%

a 95% top bracket? I know you're the leading person on this forum on labor issues, but 95% top bracket is way over the top and would absolutely murder the economy.

It didnt murder the economy when it actually existed in the 1940's and 1950's. 

In terms of income tax a 95% tax bracket brings in the same amount of revenue as the 40% tax bracket even at its highest point. I'm not quite sure how that's possible, but I think I see a lining there of why, more breaks in the tax code then than there are now, but maybe I'm wrong. Of course, this was before Business taxes and fees had any real effect on revenue, as well taxes involving social services.





Although you already said this, I would like to bring these graphs from Business Insider nevertheless.

The economy during that period had some of the greatest wage and job growth for the middle class in US history.  Yes, there were a lot more deductions pre-1986, so very few people actually paid a 95% tax rate.

[Person Man]

Generally, this.

-Create a new 44% bracket for income above $1,000,000 a year for individuals($2,000,000 for couples).
-Remove the Social Security tax wage cap completely, but continue to calculate benefits based on the old $110,000 cap(indexed to inflation).
-Repeal medicaid, SCHIP, ect. and extend Medicare to every American paid for by a 1.5% tax on AGI. I want to see how ObamaCare plays out. Call me in 2019.
-Limit itemized deductions to $70,000 a year($140,000 for couples).  This would be indexed to inflation of course.
-Tax capital gains and dividends as ordinary income.
-Cut the corporate tax rate to a flat 13% with fewer deductions.