I'm not an economist. I'm not even a college graduate, but after hearing weeks and months of blather from Republican Presidential candidates about our country's tax situation, I figured I'd take a crack at it. Here are the things I know about taxes:
A) Taxes, for the individual, aren't about dollars, they're about pain. Each dollar that somebody working a full-time, minimum wage job hurts immensely. For me, the dollars I pay don't hurt, but my annual return is absolutely needed. For somebody back-stroking in their Scrooge McDuck vault it takes zeroes and commas to really suck.
B) Taxes can be used to incent desired behaviors.
That's about it. Sure, I know other details about taxes, but these are the two concepts that I think should drive the tax code. So here goes:
1) A graduated income tax. My numbers won't be exact here, but you'll get the idea. Below $15,000, no taxes. Up to $30,000, 15%. Up to $120,000, 25%. Above $120,000, 35%. I'm substituting numbers for a concept here. A very real evaluation of the poverty line needs to be taken and at that level (for a single person), no taxes. The next three tiers will be set and 25%, 50%, and 75% of incomes.
2) No real deductions. Mortgage interest. Home efficiency upgrades. Marriage deduction (civil unions will be recognized). Up to two dependents. Child care for those two dependents. Charitable donations (unlimited). I think that's it. This would be a section that may expand as I've put all of 2 hours of serious thought into this, but a serious focus would be put into limiting the number of deductions. Deductions would have to serve grand, long term purposes.
3) Eliminate capital gains taxes. Not so fast with your boners, rich people. Investment income will be treated as regular, every day income.
4) Inheritances will be treated as normal income.
5) Corporate taxes will be effectively the same thing, with the appropriate adjustments. The deductions would require more thought than I've given this. I do know that there would be a deduction for employing a certain percentage of total workforce within the United States. There would also be tax breaks for companies developing new technologies to allow them to compete with the existing economies of scale. They would be appropriately limited in duration.
I think that's the core of it. I know that there are things I'm probably missing, but the endless minute things that people tout as being of the utmost importance will likely fit into these categories. We, as people, and politicians, as self-serving fear-mongers, tend to overblow a lot of things. People try to entangle completely irrelevant things. Acknowledging civil unions under the tax code doesn't endorse anything other than two people committing to share resources. I'd have no problem granting the same tax break to two roommates who simply committed to living together indefinitely (read also permanently). Further, deductions would be based on long-term goals such as resource reduction. The ultimate goal being the advancement and longevity of the country. Shoot holes in it and I'll shoot back as best as I can. After all, any good solution will come about through collaboration and cooperation.
