My Tax Policy Proposal
Since the election is upon us and some of my faithful readers have asked for my opinion on some issues. And because I believe everyone is entitled to my opinion here is my proposal for Federal income taxes.
First-Revenue policy and social welfare policy should be decoupled. This would be done by basically eliminating all deductions on personal Federal Income taxes.
I would eliminate Corporate income tax all together. I would tax corporate profits the way farmer cooperatives are taxed. That is, shareholders are taxed on profits whether or not there is a dividend declared. But in order to pay the taxes a certain level of dividend would be required to be paid out each year to help the shareholder pay the taxes.
There will only be two options for filing status, Head of Household(HH) and Not Head of Household(NHH). To be HH you would need to be responsible for paying more than half the cost of your primary residence. This would eliminate all debate regarding marriage, same sex marriage etc as it pertains to Federal taxes.
The rules for who may be claimed as a dependent would remain basically the same. There would be one refundable credit based on filing status and your dependent status. There would be a refundable credit for each dependent.
I would keep tax rates progressive but this system would probably result in initially lower tax rates. The lowest rates would probably be less than 5 percent. Credits and tax rate brackets would be indexed to inflation.
There would no dividing income into groups. Money is money no matter how it is earned.
I would take a look at what is allowed for deductions when computing net business income.
There are a few other things to consider but I won’t bore you with them. If you want more detail ask. 
BTW-I don’t want to be president of the United States. I am more interested in being King.
I will give my position on other issues later.
January 28th, 2008 at 7:54 pm
So I tried to come up with some sort of intelligent response to this post. Sadly, I still ask my daddy to do my income taxes. Pathetic at my age, I know. One of the district retirement planners took a look at my “portfolio” last week and disliked one of them so much (one I switched to this summer, at the behest of another planner) she thinks I should quit contributing to it all together. Now, that really doesn’t have anything to do with taxes. But it demonstrates that for someone with a master’s degree I don’t really know a whole lot.
But hey, it would be great to be King. 8]
January 28th, 2008 at 8:33 pm
Remember that all planners have different ideas about things. You should go check the tsp.gov web site. It is the web site for the Federal Government’s 401(k) type plan. Look at what they call the L funds. Then see if you have something like that in your system.
I know a planner I listened to didn’t particularly like them but I think they make a lot of sense for many people.
September 23rd, 2008 at 11:43 am
[...] For those of you who would like to read my personal tax proposal you can go here. [...]