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Ed Dodson responding...
Norman Kurland wrote:
The fairest, most democratic and simplest tax (besides user fees where
appropriate) is a single direct personal income tax on all forms of consumption
incomes in amounts above the poverty level (including rent from lands under a
binary economy). Tax returns would be prepared on a single page, and the
binary system would eliminate the current deductions, tax credits, exemptions
(except for the Capital Homestead exemptions on personally accumulated capital
assets below $1 million per citizen) and other features that complicate the
current tax systems of America (creating expensive makework jobs for tax
lawyers, accountants, tax preparers and IRS staff.) Under a binary economy
the tax rate would be set at a percentage of taxable incomes from all sources
that will automatically balance the budget at any level of government (and
possibly to pay down government debt over time as no-interest Capital
Homesteading credit is supplied by the central bank through local banks to meet
infrastructural and other productive assets now being supplied unnecessarily by
the public sector at all levels.) And politicians would be forced to be
more accountable and transparent (and most lobbyists would be forced to seek
real work).
Ed Dodson here:
We ought to remember that the Federal income tax
was initially introduced with the idea that the taxation of the highest incomes
would largely capture unearned incomes and not place any real pressure on those
who actually produce goods and services for others for a living. I would put
forward for consideration a structure that is both simple and progressive: a
graduated flat tax. As you propose, let's eliminate all exemptions and
deductions, except that we exempt all incomes up to, say, the national median.
Very vew individuals at this income level are receiving much, if any, income
that is unearned (e.g., imputed rent from land holdings being the primary form
thereof). Say the national median is $40,000. All incomes up to that amount
would pay no tax. Incomes greater than $40,000 up to $80,000 would be taxed at
5%; incomes greater than $80,000 up to $160,000, at 10%; incomes greater than
$160,000 up to $320,000, at 15%; incomes greater than $320,000 up to $640,000,
at 20%; and incomes greater than $640,000 at 25%. These ranges and rates are
arbitrary on my part, but convey the idea.
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