Flat Tax Plan of 2010 proposed by Fremont V. Brown III
Individuals: 5% tax on every individual of their taxable earned income.
Taxable earned income would be considered income earned and earned income would be considered wages, salaries, or professional fees received from sources within the United States for personal services actually rendered.
Business, Corporate or Trades: 5% on every person engaged in a business activity located in the United States on business taxable income of such person on the taxpayer’s share of the net profits of such business, corporation or trade, received from sources within the United States shall be considered as earned income. Net profit is income from sales or services minus standard business expensive.
The present U.S. Income Tax act would be completely repealed.
Also, the following taxes and programs in placed now would be completely repealed: Estate Tax, Capital Gains Tax, Dividend Taxes, Payroll Taxes, Taxes on Social Security payments to retirees, Unemployment Taxes, all Welfare and Foreign Aid programs.
Social Security would be phased out. Starting in a year to be chosen, those that have not started paying in to the plan would not be in the plan. People would become responsible for their own retirement programs.
Also, all tax-exempt organizations and non-profits would no longer be exempt from income taxes. They would pay the same 5% as everyone else.
Included in the above Act is the following, Congress would add an amendment to the U.S. Constitution, that Senate and Representatives could not spend more than 80% of the income taxes received from the previous year. Also, included would be a law that the 20% balance of the taxes collected the year before MUST be used to pay down the debt till it is paid off. Once the debt is paid in full, the 20% then could be used as the above 80%. NO NEW DEBT EVER, programs can only be funded from year to year.
The 16th Amendment which states: The Congress shall have the power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census and enumeration. A new amendment replacing the 16th will need to read: The Congress shall have the power to lay and collect taxes on incomes earned from within the borders of the USA, without apportionment among the several States, and without regard to any census and enumeration. At a rate no higher than 5% for individuals, corporations and trades.
Reasons and benefits to the Flat Tax Plan of 2010 proposed by Fremont V. Brown III
By repealing the Estate Tax, which steals the American Dream of someone building a foundation for their family to grow and prosper. And by repealing the Capital Gains Tax and Dividend Tax will cause more investment in companies and they will build and invest and in the process create jobs.
The Flat Tax would draw businesses that left the US back as the Corporate Tax would be about 34% less than it is now. Also, it should bring new businesses to the US as our Corporate Tax would be much lower than many other countries.
Once Unemployment Taxes are repealed and the income to the Government increases due to the lower-income tax rate, retraining programs could be started. But, if the education system was changed at the local level to say something like: First through sixth grade the teachers must teach the students the BASICS like math, speaking, spelling, reading and writing. Teach math without calculators. Teach the student what type questions to ask themselves to reason out the answers for themselves. Teach US history with solid knowledge of the Constitution and Bill of Rights, plus world history and geography are a must. Then starting in 7th grade the courses change to three hours a day for courses to prepare the student for college. One hour a day for a course called LIFE. This course would teach the student EVERYTHING they need to know once they begin life after 12th grade. Like cooking, washing the clothes, balance the checkbook, understanding the interest rates on loans, how to do a budget and stick to it, etc. Then four hours of vocation/trade skills. These courses would teach skills to be a plumber, carpenter, chef, landscapers, auto mechanic, dental tech, nursing, etc. The courses would also include management, purchasing, accounting and all of the skills needed to run a business. At the end of the courses the instructors would or would not issue a certificate that guarantees the employer that the student can do the job without supervision and correctly. The student could in many cases finish school with three to six skills. I am pretty sure the drop out rate would be much lower than it is now. And the students would be more prepared to start life on their own. And if, they lose a job, they will not need any retraining.
The Flat Tax would take less time and money to prepare at the end of the year. For Individuals, the tax return would be the size of a 3″ x 5″ index card. For Business, Corporations or the Trades the tax return would be the size of a 8.5″ x 11″ sheet of paper. It would, also greatly reduce the size of the IRS. As the tax returns would be much smaller and less complex, there would be much less for them to do.
Flat Tax would be a job creator as with more money left in the taxpayer and businesses pockets, they will have more money to spend and save. To spend on hobbies, vacations, fixing things around the house, buying a second home, etc.
Flat Tax would also, create lower prices as less taxes means less cost added into the products and services which equals lower wholesale, distributor and retail prices. The cost of living goes down. Even more money left in the taxpayers pockets.
Something to think about: Everyone should support their country, as their country should treat all of its citizens equally. As all men are created equal, everyone should pay the same percentage.
It is a proven fact that lower tax rates increase revenue to the taxing agency, because people have more money in their pocket to spend on investments, goods, and savings, etc. This creates more jobs and growth.
Higher taxes give people reasons to not report or under report income or to earn less income. Higher taxes are one of the reasons for lower productivity and lower living standards of the people. Along with too much government regulation. It is also the cause of less money for research and development expenditures. It removes money from the private sector. The private sector is where wealth is created. The Government sector does not create wealth. The larger the government the more it takes from the people and produces nothing, but overhead (expenses) in return.
PS: I have been told “Your plan would create a negative score because we wouldn’t get the dynamic score of additional growth to offset.” I answered “Mistake is thinking it would not “include additional growth to offset” as it would BRING back all the funds overseas that then would be invested here plus ALL the studies show that when taxes are lower that funds to the taxing agency INCREASES as people and companies have MUCH more money to spend. Americans for the most part LOVE to spend, just look at the credit card debt.” I should have added that the provision of EVERYONE being taxed widens and expands for the growth to offset.