Wednesday, August 20, 2008

Repost - Solutions for A Growing America - Part 5

The current tax system is a detriment to economic growth for a majority of Americans. The foundation of this Country was built in part upon an idea of no taxation without representation. Today the same problem seems to exist. The People do not have representation, if they did the majority would be benefiting from the tax structure, not a small majority of those who have consolidated power and were able to buy representation in the seat of Government. There should be a simple tax structure without pages of exemptions and different ways to shelter income from taxation.

In order to insure that each individual is able to attain the goals of life, liberty and the pursuit of happiness, the basic needs of food,shelter,clothing, and medical care must be met. People who are struggling to survive are not able to attain the lofty goals of the founding documents of this Nation. The income that is needed to secure the basic necessities of life should not be taxed by the Government. The starting point of a revised tax system will start with the premise that there is an amount of income that is needed to attain these basic necessities, realistically in 2008 that would be in the $50,000 per person range. The tax code should start with a $50,000 personal exemption for each individual. Any income from $50,000 to $1,000.000 should be taxed at 10%, income exceeding $1,000,000 should be taxed at a higher rate and so on as seen fit by the People. All C Corporations should be taxed at a flat 20% of their income after their expenses without any deductions bought and paid for by their lobby. The levels of all would have to be inflation adjusted to keep them equitable.

Many call for a VAT tax as a flat tax, but A Value Added Tax is regressive because it will tax all of the basic necessities of the working and middle class. A progressive Income tax such as suggested above is fair to a majority of the People, not the few that benefit now. If the first $50,000 of personal income was tax exempt there would be a major stimulus that would constantly be feeding the economy. A Progressive Tax is fair to the individual, fair to the economy and fair to the Government. If the People truly had representation in the Congress this idea would be old news. America is saddled with a Congress that is entrenched because they feed the needs of a selected few who can buy their influence while the People suffer. In the Spirit of 1776 the People should demand Representation that is representing their interests.

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