Principles-Based Income Taxes

 Summary: The nation’s financial situation requires control of spending and improved tax systems. Many income tax systems, e.g., flat taxes and others, have been proposed. The present progressive income tax would be hard to replace, but it needs to be re-engineered starting from a set of principles. A re-engineered income tax system can expedite solutions to today’s fiscal problems, reduce future problems, and help unite a divided citizenry by being a simple, fair, and long-tern focused.

The Case For A Wealth Tax

Summary: A progressive wealth tax applied to the top one percent wealthiest citizens is proposed that is superior to the “Fiscal Cliff” rate increase for high earners. A wealth tax decreases the rich-poor gap, is less burdensome on job creating small businesses, is a fair and simple way to raise deficit reduction revenues, and is in the nation’s long-term best interest.

New Business Taxes = U.S. Jobs and Economic Growth

Summary: Two new taxes are proposed to replace present business taxes. A small flat tax assures businesses pay for general benefits they receive from publically financed functions. A value added tax (VAT) that is zero or small for value added within the U.S. and higher for value added offshore will drive investments and jobs to the U.S. and keep U.S. businesses globally competitive.

Taxes Based On Principles Not Politics

Summary: Five basic tax principles that would enhance the nation’s long-term health are presented. Present taxes were established based on short-term political expediency. An understandable principles-based paradigm shift is needed to facilitate solutions to today’s jobs, spending, deficits, and debt problems. Principles-based taxation will expedite solutions to today’s problems, reduce future problems, and help unite a divided citizenry.

Political rhetoric about creating jobs, reducing deficits and debt, and fair taxes has focus on fixing problems by tweaking existing tax rates and deductions. These Band-Aid fixes on failing systems do not address root causes or long-term solutions to our problems. Effective solutions require spending, job, and economic growth policies that include taxes based on long-term principles. 

Government Verses Business Profits, Growth, and Jobs

Excessive taxes and regulations, and poor governmental policies are major business costs that reduced resources available for business creation and expansion. For example, U.S. corporate taxes are the highest in the world, and high U.S. progressive income taxes — that President Obama proposes to increase — drive many jobs offshore, and stifle growth. A fundamental question is: “What are the impacts of government driven business costs on the whole nation?”

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October 2019
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