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It takes money for a great nation to do great things. However, our tax system is evil! Our income tax system is not fair. People can avoid taxes by:
Not reporting income
Through loopoles which are there because they befefited someone.
When liberals increase taxes, some people shelter income until conservatives lower the taxes. Then that sheltered income can be realized at a lower tax.
A fair tax system would avoid all of these things. People wouldn't have to buy tax software or hire accountants just for personal income tax reporting. They wouldn't have to be burdened with spending the time doing taxes or keeping records for doing them. People wouldn't have to learn how to do taxes or be worried whether they did them right.
They had reason for a graduated tax bracket system because those with low income can't afford the taxes. They can actually get earned income credits which gives them a refund even if they don't pay taxes. This is a form of redistribution of wealth. It puts more burden on the higher income earners. I envision a much simplified system that is much more efficient and fair. With a simplified and fair system, I can support some progressive ideas that could make for a greater nation. I can't support those progressive things if they are paid for with our evil income tax system. I envision a combination of changes that could work together to be a more efficient and more fair way of paying for things done by a great nation. Some ideas, some dependent on working in concert with others, are:
Flat payroll income tax
Flat payroll income tax
If there were a flat income tax with payroll deduction, regardless of income, there should be no need to file a personal tax return. However, the graduated tax provided a method of redistribution of wealth, which is needed. I would only support this if it is in combination with other things to make things work fairly, providing a fair redistribution of wealth.
Check for everyone
Check for everyone
Under the current system, lower wage earners don't pay tax and yet get a sizeable tax refund. That wouldn't happen with a flat income tax. Instead, the same effect can be accomplished through a government check for everyone. Rather than determining eligibility, I would suggest everyone who qualifies, regardless of income, gets the check. For one with little income, the check would be significant to them. For those with high income or wealth, the check wouldn't be needed, but they are the ones who would be paying most of the tax to pay for the checks anyway. It is simpler and more fair to include everyone rather than deciding who qualifies according to income. This should be a more fair and efficient way to redistribute wealth compared to the current income tax.
National sales or consumption tax
National sales or consumption tax
To supplement the flat payroll tax, there could be a national sales tax. I would almost support the sales tax rather than any income tax, but people have made decisions based on having an income tax. Retirement account deposits were made pre-tax. Other tax decisions were made. If income tax were to be completely done away with, it probably should be done gradually. Likewise, a sales tax could be phased in.
Fees for certain transactions
Fees for certain transactions
It may be good to have fees for securities transactions. My reasoning for why this makes:
If money is held in a bank account at low interest, there may be a net loss after inflation.
To participate in a likelyhood of a higher gain, money can be invested in the stock market.
At one time people bought stock in a company because they wanted a piece of the company. It was normally a longer term investment. Computers made trading easier and mutual funds popular. People now make stock market trades similar to the way they trade cripto currencies.
People can minipulate the market with large trades and with comments in the news or social media. Trading is too responsive to changes in the market. A larger transaction fee would make people hesitate and give more thought to their trading.
Stocks would still have their value and grow value for those who invest longer term. They wouldn't have the transaction fee until deciding to sell some day. Trading fees could be set at an amount that would slow trading but not hurt the market. It could actually help the market because it shouldn't be as volatile. The extra fees collected there would reduce the need for other taxes.
These fees can also be on cripto currency trades.
These fees might replace capital gains tax.
The above is offered as a starting point for discussion. My bottom line is: I could support progressive ideas if supported by fair and simplified forms of revenue.
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