[Magdalen] Quick return.

[Roger Stokes]

Jim,

I think there are some people currently taking a break from their 
responsibilities in DC who would not like such an approach.

Roger

On 14/02/2015 21:34, Jim Guthrie wrote:
> One of the problems with the tax system is that many people think they 
> need to hire an accountant, both because their arithmetic is bad (or 
> as Barbie would whine "Math is Too Hard") and fear of the IRS, added 
> to the complication of the form.
>
> But the American version of the Welfare State is done through the tax 
> system, so there are a lot of vested interests looking to keep their 
> piece of the pie, not to mention the Accountants' lobby.
>
> As I've said before, I think a graduated consumption tax makes much 
> more sense:
>
> 1. How much cash did you receive during the year from all sources 
> including work, savings and investments?
> 2. How much did you save in banks and stocks or pay in salaries?
> 3. Difference = Gross Income.
> 4. Subtract the the Annualized Minimum Wage (AMW)
> 6. Taxable Income
>
> What you owe:
> If your income is less than 2x AMW, 5% of Taxable Income ,
> a. 5% up to 2x AMW
> b. 10% 3x-4x AMW
> c. 25% 4x-6x AMW
> d. 50% 6x -8x Minimum Wage
> 3. 60% >8x Minimum Wage
>
> So if the Minimum wage is $10, the annual minimum wage is 
> 40x52x10=$20,800 which is thus everyone's "Standard Deduction."
>
> And if someone makes a million dollars a year, but invests $997,200 
> there's no tax. If they choose to spend it all, the tax would be 60% 
> of $997,200, or just short of $598,800.
>
> No deductions for kids or marital status, no mortgage interest or 
> local tax deduction -- nada. Nothing. No filing jointly, either. One 
> page of instructions and return on a card or virtual card.
>
> Oh -- and the only way to get a tax cut is to raise the minimum wage. 
> In essence, a graduated flat tax <g>.
>
> Cheers,
> Jim
>
>