Posted 11/6/2017 MY TAX PLAN
Latest edit: 2/19/2021
The Core Principle of Taxation: tax rates should go up the following year, if there is a deficit, and go down, if there is a surplus. Maintain the ratio of national debt to GDP -- between 40% to 80%, except for a natural emergency or war—by:
Total itemized deductions cannot exceed:
90% of AGI $50K to $80K
85% of AGI $80K to $160K
80% of AGI $160K to $300K
75% of AGI $300K to $600K
70% of AGI $600K to $1M
65% of AGI $1M to $5M
60% of AGI $5M to $10M
55% of AGI $10M and over
Gambling losses deducted from gambling winnings only: 25% flat tax on winnings on $5,000 and over.
Dividends: taxed as ordinary income: less what corporation paid on your dividends in the form of tax on corporate income [or profit]—either in dollar amount or percentage.
Carried interest taxed as ordinary income
Capital Gains Tax:
10% $0 to $500
15% $500 $1,000
20% $1K $10K
25% $10K $100K
30% $100K $1M
35% $1M and over
* long-term capitals gains taxed the at same rate as short term with a 2% deduction, after one full year for inflation for up to 10 to 20 years.
* $200K capital gains exemption on sale of primary residency lived in for 4 years, once every 10 years [double for married couple].
CORPORATE INCOME TAX:
Tax rates and brackets
15% $0 to $100K
20% $100K to $1M
25% $1M and over
5% - 10% on offshore or foreign profit
* Design accounting rules; so, corporations can’t shift profits to tax havens and shift expenses to the US.
* Operating losses limited to 75% of taxable income or profits: carry over to future years income: no carry back.
PASS-THRU ENTITIES
* All legitimate business expanses deductible
* operating losses deductible the same as they are now
* except, business losses cannot exceed 50% of personal [or other non-business income].
ESTATE TAX
* exemption per person: $2M single -- double for married couple
Rates and brackets
5% $0 to $100K
10% $100K $300M
20% $300K $1M
25% $1M $5M
30% $5M $25M
35% $25M $100M
40% $100M $300M
45% $300M $600M
50% $600M $1B
55% $1B and over
* Family farms and businesses given five options to pay the estate tax:
1. pay up front, if capable…
2. given ten years to pay
3. pay when sold, 1-2% interest per year for deferment, paid annually
4. estate tax debt cancelled, if operated by family members over a period of 25 years or 4% per year.
5. request delay of payment of the estate tax debt due to operating losses, natural disasters, and other causes.
a. taxed the same as the gift tax
b. exemption $50K
Social Security and Medicare Tax—or FICA taxes remains the same: or tax rates can be increased, and/or benefits can be decreased, the age of retirement can be increased, and/or the wage cap can be increased, if there is a short fall.
* Social Security payments taxed as income, exemption $18,000.
* Payroll taxes deducted from gross income.
ESTATE OR INHERITANCE TAX OR BOTH:
i have explained that in other places: both would be better: I would reduce or cut in half the estate tax and tax inheritances received by individuals after a reasonable deduction: both fair. The $27.9 trillion U.S. federal debt on 2/19/21 means: estates and individuals were under taxed from 1980 to the present: death is good time to collect the money.
I also would eliminate tax strategies used by the wealthy to avoid the estate and inheritance taxes.
Tax revenues must equal or pay for government expenses annually to prevent the blooming of the national debt--except for national emergencies. That has not happened for the last 40 years.
New Taxes [for 2019]:
1. tax on sodas, sweets, and saturated fat [or junk foods]
2. tax financial transactions
3. 10% tax on corporate untaxed $2.6 trillion in offshore profits
Expat Tax
People who move to other countries to avoid U.S. [higher] income and wealth taxes -- impose an Expat Tax. It is fair for these reasons:
#1. Renouncing US Citizenship is equivalent to dying; therefore, imposing the Expat Tax, similar to the estate tax -- or "death tax".
#2. They have renounced America’s role —as the main protector of human rights in the world: the cost not funded by tax havens [countries]. That is defection.
#3. They owe it: their wealth was created—in the United States—from and by our laws, government services, labor force, and natural resources—but, they are leaving: owing back taxes: the US debt created in their life time.
That is the spike in U.S. annual federal deficits—that have accumulated into our present $22 trillion National Debt following the lowering the tax on individual income, capital gains and dividends and corporate profits by Ronald Reagan, G.W. Bush, and Trump.
They became extremely rich and the US government extremely in debt (i.e., from under taxation); now—they want to leave.
#4. Not so fast -- that is theft of all gains.
Impose the Expat Tax with progressive rates from 10% to 70% on wealth: exemption $50,000. Then, they can leave with the remainder.
I would also impose the Expat Tax on Corporations that move to a foreign country to avoid the U.S. federal profit tax.
I would also eliminated the use of foreign Tax Havens by corporations and individuals to avoid the U.S. income or profit tax.
Goal of tax plan: balance the budget or reduce expenses and/or increase taxes until they merge or equal. Once, the national debt is reduced: you save on interest costs and reduce the burden of paying off U.S. treasury bonds when they come due. Then, you can lower taxes and/or increase government spending on needed programs.
Bear in mind—other factors are also involved: economic, social, political, environmental, and global.
My main concern: voter ignorance and apathy,,,.
My tax plan is predicated on:
1. the fact: we are living beyond our means:
2. proof: in the last 38 years: we have had 34 years of large budget deficits: compared with 4 years of small surpluses.
3. that means: we have over spent and under taxed—based on our GDP; like Greece.
4. Estimated deficit for 2019: $995,000,000,000
5. Interest cost projected to triple in 10 years: from $315 billion in 2018 to $915 billion in 2028. Suffer the pain of reform now—or a greater pain in the future, if we remain on same path: borrowing to pay Government Expenses and allowing law-makers to rig the Tax Code to benefit the Rich.
THE ADDENDUM
TAX CODE FOR CHURCHES
Part I
1. churches, synagogues, and mosques must apply for tax exemption status
2. a code formulated defining what is a qualified tax exempt religious entity:
a. it can’t be based on Satanism or Science Fiction
3. churches not allowed to accept donations for the purpose of endorsing
political candidates
4. churches prohibited from donating church funds for political campaigns
5. tax-exempt religious entities prohibited from engaging in politicking
6. churches must make its bylaws public
7. tax exempt churches must file an annual tax return subject to IRS audit
8. churches must make annual financial statement of expenses, salaries, incomes,
and donations to others available to members
9. churches must answer question from the IRS and government investigations to
maintain their tax-free status
10. churches must pay tax on all income from enterprises—not related
to religious activities
11. church tax-exempt properties must meet qualifications and be granted by
by the government
12 cap the property tax exemption for minister’s residency
13. formulate code to define what is a church and ministerial qualified expense
14. limit parsonage allowance to active, full time, ordained clergy
15. cap the tax free parsonage allowance
16. these entities must pay payroll taxes for non-ministerial employees
17. ministers may opt out of paying payroll taxes and pay the SECA tax
a. that is between the church and ministers
18. donations to churches not tax deductible, if they do not have tax exempt status
19. the main purpose of the tax exempt churches: to teach religious principles [or truths]
—not to engage in partisan politics
a. churches have a minor right to express opinions on moral issues:
social, economic, etc.
20. religious entities cannot have tax exempt status seeking state political power
for their church, priesthood, or religion
PART II
1. The U.S. Congress has the right to repeal the Johnson Amendment: that
would allows churches to engage in partisan politics, but would violate the
separation of state and church principle.
a. that would also violate the present law: churches could use tax-exempt
donations for engaging in partisan politics; presently, political donations
are not tax deductible.
b. the Trump-GOP controlled Congress should not take such action
without consulting with top religious leaders: such action, might
result in dire consequences…..
c. Trump’s proposal is unwise from many different angles…not well
thought out: he is; basically, a moron…
2. Although—the 1st Amendment clause is good in some respects: it is also
bad
3. There is a need for church laws: churches operating in a no-law environment
has led to widespread abuses.
LAST WORD
I would pass a law making the U.S. Congress balance the budget on an annual basis or give a justifiable reason for not doing so -- approved by the majority of people or voters.
Latest edit: 2/19/2021
The Core Principle of Taxation: tax rates should go up the following year, if there is a deficit, and go down, if there is a surplus. Maintain the ratio of national debt to GDP -- between 40% to 80%, except for a natural emergency or war—by:
- changes in the income tax rates
- expanding or contracting brackets
- adding or eliminating taxes
- adding or deleting tax credits
- adding or removed deductions
- and/or cutting expenses [or benefits]
- $12,000 standard deduction per person: double for married couple
- $3,000 for each child or dependent
- $18,000 exemption for head of household
- standard deductions or itemized
Income subject to the Income Tax: wages, bonuses, commissions, interest, profits from pass thru entities, fees, royalties, lottery winnings, government pensions, alimony payments, tips, fringe benefits, unemployment compensation, rent, etc.
single married head of
Tax Rates filing jointly household Brackets_______
10% 5% 5% $0 to $10,000
12% 6% 6% $10,000 $20,000
14% 7% 10% $20,000 $34,000
16% 8% 12% $34,000 $50,000
18% 9% 16% $50,000 $80,000
21% 12% 19% $80,000 $120,000
25% 16% 23% $120,000 $200,000
30% 25% 29% $200,000 $400,000
35% 32% 34% $400,000 $800,000
40% 38% 39.5% $800,000 $1,600,000
45% 44% 44.5% $1,600,000 $2,600,000
50% 49% 49.75% $2,600,000 $4,000,000
55% 54.25% 55% $4,000,000 $6,000,000
60% 59.5% 60% $6,000,000 $10,000,000
70% 70% 70% $10,000,000 and over
- home mortgage interest
- healthcare insurance premiums
- 25% charities
- state income tax paid
- medical expenses in excess of 8% of adjusted gross income [not insured]
- alimony payments
- 401K deductions [temporally suspended]
- $3,000 for capital losses per year on earned income and 3% over $200K.
- $1,000 per candidate per election: limit $10,000 per year
- losses from natural disasters not reimbursed or reimbursable including fires, fraud, vandalism, theft losses of personal property over $100 and must exceeds 10% of AGI
- child support payments
- student interest loan
- childcare for working parent
- child support payments [$7,500 per child, per year]
- welfare benefits
- insurance benefits from accidents and disaster losses
- disability benefits
- municipal bond interest
- income from small claims lawsuits
- awards to cover medical expenses, property losses, disability expenses, etc
Total itemized deductions cannot exceed:
90% of AGI $50K to $80K
85% of AGI $80K to $160K
80% of AGI $160K to $300K
75% of AGI $300K to $600K
70% of AGI $600K to $1M
65% of AGI $1M to $5M
60% of AGI $5M to $10M
55% of AGI $10M and over
Gambling losses deducted from gambling winnings only: 25% flat tax on winnings on $5,000 and over.
Dividends: taxed as ordinary income: less what corporation paid on your dividends in the form of tax on corporate income [or profit]—either in dollar amount or percentage.
Carried interest taxed as ordinary income
Capital Gains Tax:
10% $0 to $500
15% $500 $1,000
20% $1K $10K
25% $10K $100K
30% $100K $1M
35% $1M and over
* long-term capitals gains taxed the at same rate as short term with a 2% deduction, after one full year for inflation for up to 10 to 20 years.
* $200K capital gains exemption on sale of primary residency lived in for 4 years, once every 10 years [double for married couple].
CORPORATE INCOME TAX:
Tax rates and brackets
15% $0 to $100K
20% $100K to $1M
25% $1M and over
5% - 10% on offshore or foreign profit
* Design accounting rules; so, corporations can’t shift profits to tax havens and shift expenses to the US.
* Operating losses limited to 75% of taxable income or profits: carry over to future years income: no carry back.
PASS-THRU ENTITIES
* All legitimate business expanses deductible
* operating losses deductible the same as they are now
* except, business losses cannot exceed 50% of personal [or other non-business income].
ESTATE TAX
* exemption per person: $2M single -- double for married couple
Rates and brackets
5% $0 to $100K
10% $100K $300M
20% $300K $1M
25% $1M $5M
30% $5M $25M
35% $25M $100M
40% $100M $300M
45% $300M $600M
50% $600M $1B
55% $1B and over
* Family farms and businesses given five options to pay the estate tax:
1. pay up front, if capable…
2. given ten years to pay
3. pay when sold, 1-2% interest per year for deferment, paid annually
4. estate tax debt cancelled, if operated by family members over a period of 25 years or 4% per year.
5. request delay of payment of the estate tax debt due to operating losses, natural disasters, and other causes.
- remove the stepped up in basis on inherited assets
- deduction for state inheritance or estate tax paid
Gift [or transfer of wealth] tax:
Paid annually by recipient:
Exemption: $10K per year
* Xmas, birthday, and wedding gifts excluded. Some limits may be added, if used to avoid the gift tax and the estate tax.
Tax Rates and Brackets:
10% $0 to $20,000
15% $20,000 $50,000
20% $50,000 $100K
25% $100K $1M
30% $1M and over
a. taxed the same as the gift tax
b. exemption $50K
Social Security and Medicare Tax—or FICA taxes remains the same: or tax rates can be increased, and/or benefits can be decreased, the age of retirement can be increased, and/or the wage cap can be increased, if there is a short fall.
* Social Security payments taxed as income, exemption $18,000.
* Payroll taxes deducted from gross income.
ESTATE OR INHERITANCE TAX OR BOTH:
i have explained that in other places: both would be better: I would reduce or cut in half the estate tax and tax inheritances received by individuals after a reasonable deduction: both fair. The $27.9 trillion U.S. federal debt on 2/19/21 means: estates and individuals were under taxed from 1980 to the present: death is good time to collect the money.
I also would eliminate tax strategies used by the wealthy to avoid the estate and inheritance taxes.
Tax revenues must equal or pay for government expenses annually to prevent the blooming of the national debt--except for national emergencies. That has not happened for the last 40 years.
New Taxes [for 2019]:
1. tax on sodas, sweets, and saturated fat [or junk foods]
2. tax financial transactions
3. 10% tax on corporate untaxed $2.6 trillion in offshore profits
Expat Tax
People who move to other countries to avoid U.S. [higher] income and wealth taxes -- impose an Expat Tax. It is fair for these reasons:
#1. Renouncing US Citizenship is equivalent to dying; therefore, imposing the Expat Tax, similar to the estate tax -- or "death tax".
#2. They have renounced America’s role —as the main protector of human rights in the world: the cost not funded by tax havens [countries]. That is defection.
#3. They owe it: their wealth was created—in the United States—from and by our laws, government services, labor force, and natural resources—but, they are leaving: owing back taxes: the US debt created in their life time.
That is the spike in U.S. annual federal deficits—that have accumulated into our present $22 trillion National Debt following the lowering the tax on individual income, capital gains and dividends and corporate profits by Ronald Reagan, G.W. Bush, and Trump.
They became extremely rich and the US government extremely in debt (i.e., from under taxation); now—they want to leave.
#4. Not so fast -- that is theft of all gains.
Impose the Expat Tax with progressive rates from 10% to 70% on wealth: exemption $50,000. Then, they can leave with the remainder.
I would also impose the Expat Tax on Corporations that move to a foreign country to avoid the U.S. federal profit tax.
I would also eliminated the use of foreign Tax Havens by corporations and individuals to avoid the U.S. income or profit tax.
Goal of tax plan: balance the budget or reduce expenses and/or increase taxes until they merge or equal. Once, the national debt is reduced: you save on interest costs and reduce the burden of paying off U.S. treasury bonds when they come due. Then, you can lower taxes and/or increase government spending on needed programs.
Bear in mind—other factors are also involved: economic, social, political, environmental, and global.
My main concern: voter ignorance and apathy,,,.
My tax plan is predicated on:
1. the fact: we are living beyond our means:
2. proof: in the last 38 years: we have had 34 years of large budget deficits: compared with 4 years of small surpluses.
3. that means: we have over spent and under taxed—based on our GDP; like Greece.
4. Estimated deficit for 2019: $995,000,000,000
5. Interest cost projected to triple in 10 years: from $315 billion in 2018 to $915 billion in 2028. Suffer the pain of reform now—or a greater pain in the future, if we remain on same path: borrowing to pay Government Expenses and allowing law-makers to rig the Tax Code to benefit the Rich.
THE ADDENDUM
TAX CODE FOR CHURCHES
Part I
1. churches, synagogues, and mosques must apply for tax exemption status
2. a code formulated defining what is a qualified tax exempt religious entity:
a. it can’t be based on Satanism or Science Fiction
3. churches not allowed to accept donations for the purpose of endorsing
political candidates
4. churches prohibited from donating church funds for political campaigns
5. tax-exempt religious entities prohibited from engaging in politicking
6. churches must make its bylaws public
7. tax exempt churches must file an annual tax return subject to IRS audit
8. churches must make annual financial statement of expenses, salaries, incomes,
and donations to others available to members
9. churches must answer question from the IRS and government investigations to
maintain their tax-free status
10. churches must pay tax on all income from enterprises—not related
to religious activities
11. church tax-exempt properties must meet qualifications and be granted by
by the government
12 cap the property tax exemption for minister’s residency
13. formulate code to define what is a church and ministerial qualified expense
14. limit parsonage allowance to active, full time, ordained clergy
15. cap the tax free parsonage allowance
16. these entities must pay payroll taxes for non-ministerial employees
17. ministers may opt out of paying payroll taxes and pay the SECA tax
a. that is between the church and ministers
18. donations to churches not tax deductible, if they do not have tax exempt status
19. the main purpose of the tax exempt churches: to teach religious principles [or truths]
—not to engage in partisan politics
a. churches have a minor right to express opinions on moral issues:
social, economic, etc.
20. religious entities cannot have tax exempt status seeking state political power
for their church, priesthood, or religion
PART II
1. The U.S. Congress has the right to repeal the Johnson Amendment: that
would allows churches to engage in partisan politics, but would violate the
separation of state and church principle.
a. that would also violate the present law: churches could use tax-exempt
donations for engaging in partisan politics; presently, political donations
are not tax deductible.
b. the Trump-GOP controlled Congress should not take such action
without consulting with top religious leaders: such action, might
result in dire consequences…..
c. Trump’s proposal is unwise from many different angles…not well
thought out: he is; basically, a moron…
2. Although—the 1st Amendment clause is good in some respects: it is also
bad
3. There is a need for church laws: churches operating in a no-law environment
has led to widespread abuses.
LAST WORD
I would pass a law making the U.S. Congress balance the budget on an annual basis or give a justifiable reason for not doing so -- approved by the majority of people or voters.