How would you fix America's economic problems if you had the authority to do it?

Adoucette’s pie chart below, from another thread, made me realize there is a huge advantage to my simplified tax code, I had not previously understood.

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If corporations were not taxed but did distribute their earning with a max delay of 10 years to tax payers, not only as I have long said would they be more competitive internationally (helping with trade balance, job creations, etc.) But also the Government would collect more revenue. This is because (I am almost certain*) the average marginal tax rate of the taxpayers receiving these dividend distributions would be higher than the current average corporate tax rate. – Perhaps a revenue increase large enoungh to pay off US debts without destroying the value of the dollar, which is the current plan?

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"Almost certain" because under my tax code all income it treated the same - no capital gains rate, etc. only one progressive rate schedule. Also with greater exports, more people working, more taxes are paid and less "welfare assistance" is required.

If you want to see details and several page of discussion about my suggested tax code see: http://www.sciforums.com/showpost.php?p=1792841&postcount=1

Note it has no taxes on corporations (but they must distribute profits within 10 years to people who are taxed or send the profit made 10 years ago to the IRS) and is so simple the tax law fits on a 3.5 index card, not 30,000 volumes of special interest, lobbyist written laws. (The 10 year delay gives working capital, funds for expansion and financing goods until sold, etc. without borrowing, etc.) One possible 10 year duration "Phase in Plan" could be all use current tax law but pay only 90% of its computed tax in year 1, 80% in year two, etc. With only 10% the simple plan's computed tax being paid in year 1, 20% in year two, etc. or something like that.

My tax plan is so simple most any tax payer can do it in less than 5 minutes, if they have their data collected. A slight increase in effort initially but a great reduction in effort by and after year 10 of the phase in. Once the income has been taxed, you can give it to someone else and it is not taxed again (no gift tax or inheritance tax)

The rate progressive rate table is annually adjusted to make "pay as you go" government, except in declared war time. Thus, every new benefit for the current generation the government gives out to win votes increases their, not their children's, tax burden. "Pay as you go" prevents the instability of democracies discussed here: http://www.sciforums.com/showpost.php?p=2573119&postcount=1

Which was first discussed in Democracy in America by Alexis de Tocqueville in 1835: "... mutually corrupt citizens and the democratic state. Citizens vote for those politicians who promise to use the state to give them whatever they want. ..." But with the invention of fiat money has become much worse, much more unstable, than de Tocqueville could ever have imagined. - As world's worst ever depression, soon to come, will show.

 

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