Dare I say a BETTER way of taxing us?
I propose a three tier taxing system.
The first tier would be very simple and very easy and everyone would pay, albeit at a much lower rate than at present.
The second tier would be difficult to escape, but it would be possible to limit how much you pay. It would be easier for poorer people to limit how much they pay.
The third tier would almost be voluntary! While it would not be possible to escape it completely, you would be able to decide not to pay it. And if you did not pay it you would be healthier and not only you, but everyone else would be better off!
So here goes;-
Tier one, a flat tax that increases as your income increases. I suggest 5%, 10%, 15%, 20% and 25% rates, based on income. The tiers would need to be set. Up to a certain amount a person would pay 5%, then on the amount OVER that first level the rate would be 10%, and so on. The higher levels would only be on the amount OVER the previous level, not on the entire income earned. This is the same as it is now. But the rate would be MUCH lower. There would also be NO deductions, allowances, loopholes etc. You report your income and you pay on that income.
Tier two, a sales tax. To pick a number I suggest 5% for the States and 5% for Federal. With no tax on food, medical and services. This would reduce the bite on essentials and help people with lower incomes more than the richer. I see you being able to reduce the amount of tax you pay in this level, although it would be difficult to impossible to escape it completely. But you can see that someone with a very low income who could only afford the essentials like food and medicine would pay little tax, while someone with a large disposable income would be paying more tax as they would buy more. It would also be difficult to avoid this tax as it would be added at the source, or even before the item is priced! (One possibility here might be a couple of levels of tax, for example 5% on most items but a higher rate on luxury goods like expensive jewelry, cars, boats, planes etc.)
The third tier, a "Health and Safety" tax. Many people would be able to choose to avoid this tax completely! Anyone who did pay it would not only be hurting themselves financially but also their health, and/or the health of us all and of the Planet. Quite simply there would be a substantial tax on such things as Cigarettes, Alcohol, Fat, Sugar, etc. We would be able to CUT DOWN ON THE BAD STUFF, stuff that hurts us, and save money! we would get stronger and healthier and wealthier! Who could argue with that?
We would also tax Carbon, Gasoline, Cars (The bigger they are the bigger the tax), Pollution - or Polluters, etc. Again we could reduce our use of scarce stuff, CUT DOWN ON POLLUTION AND HAVE CLEANER AIR AND WATER. And save money doing it! And breathe cleaner air and drink cleaner water and have healthier kids and us! Who could argue with that?
We would also tax Guns, Ammunition, Speeding, Murder, Rape, Theft, Drunkenness (in public), Assault, Violence, etc. WE WOULD ALL BE SAFER. And save money doing it. Who could argue with that?
With my idea the total tax paid would be the same. (Actually it is obvious that we need to increase our tax level as we are not collecting anywhere near enough taxes to pay for even basic services. But that is another thing.) So the tax paid would be the same. It would just not come from income alone. Instead the lions share would come from the bad stuff that we do to ourselves, our world and our fellow man. This would give us a reason, and an excuse, if we need one, to stop doing bad stuff.
Don't take so much of our hard earned money, tax us for doing things that are bad for us and everyone else. This should also cut down on our Health Insurance premiums as we would all be healthier! And cut down on money spent on insurances - by cutting down on speeding etc. Less of our money would go to prisons, people might think twice for example if they were going to lose money if they are violent. Money for all those crimes would be confiscated and used to pay for the prisons.
Want to keep more of your money? Do good stuff. Be good to yourself. Be good to the Planet.