WIth all the talk of taxes

[lehighguy]

With all the talk about taxes, I thought

My ideal tax structure.

No taxes on first $20,000
10% on Income up to $1,000,000
15% Above $1,000,000
Deductions can only be used for medical expenses.

No FICA taxes
State and property taxes still used for local expenses like schools and police. That will be left up to states.

I don't mind the slight progressive nature as long as the tax rate and spending is low.

Indexed to wages with a constitutional amendment making it impossible to restructure or add new taxes without 2/3 majority.

Also, government wouldn't be allowed to run a budget deficiet above 3% of GDP unless war is declared by congress. Also, anytime the US GDP grows by 3% or more in the previous year you can't run a budget deficiet at all (there are issues here, but I still think its the best alternative). You can run whatever government programs you want with that money.

Edit: No taxes on poker winnings, cause that's just mean.

[J-Lo]

maybe u should post the a link to the current tax structure.

[lehighguy]

The current tax structure is hard to read because of deductions and FICA and many other factors. That is why it's 1100 pages. But here are the marginal tax rate brackets if your interested.

http://www.irs.gov/formspubs/article/0,,id=109877,00.html

[Non_Comformist]

Don't you think there could be other happenings which could justify a budget deficit?

Would you disband the entire social security system? How would you pay the existing benefit?

I think you could lower the brackets to $500,000 and still be incedibly fair while generating more revenues.

Why the exemption for medical expenses?

[lehighguy]

There are two main reasons for a large budget deficiet, awr and economic downturn. In the event of war the 3% cieling is erased. The only reason I left 3% is because it gives room for fiscal stimulus during slow economy. During normal economic expansion budget deficiet should be zero, and during boom times it should be negative.

I would try to phase out SS (and FICA taxes). People retiring today would recieve full benefits. But the younger you get the less benefits you will recieve. So people 55-65 would recieve lower benefits, people 40-55 would recieve lower then that, and under 40 would be on thier own. That's a rough estimation.

What I'm giving is my ideal tax structure. Two impediments, SS and outstanding federal deficiet are things that must be eliminated before the plan can be implemented. I'm stating what I would do if I had a clean slate that hadn't already been messed up.

I don't want to tax doctors, lawyers, small business owners, or any other professionals more then someone in the middle class. The million dollar cap ensures that doesn't happen even in a good year. Those people pay the highest portion of thier income currently, but deserve thier money the most.

Medical expenses can be unforseen and large. They are also inelastic, you can't decide not to pay them. That being said I would only allow for non-preventable medical expenses. If you get plastic surgery it doesn't count. If you are 300 pounds and have a heart attack at 40 it doesn't count. If your a diabetic and you need insulin that counts. If you get hit by a car and end up in the hospital that counts.

[renodoc]

[ QUOTE ]
Medical expenses can be unforseen and large. They are also inelastic, you can't decide not to pay them. That being said I would only allow for non-preventable medical expenses. If you get plastic surgery it doesn't count. If you are 300 pounds and have a heart attack at 40 it doesn't count. If your a diabetic and you need insulin that counts. If you get hit by a car and end up in the hospital that counts.

[/ QUOTE ]

What if your diabetes is caused by your 40 lbs of extra weight? What if you weren't wearing your seatbelt when you crashed? What if you were drunk?

Your proposal for healthcare is an end-around of government control. Once they get involved in the $$$$, they will dictate who gets what when and how often.

[lehighguy]

Okay valid arguement.

I'm not a health insurance guru. If it really is impossible to come up with a system I'm willing to drop the medical expense deduction.