In my last article I suggested revising the tax code to have a reverse graduated income tax. How would this work? I believe every person in America should contribute towards the system and pay for the services used. Each individual would be responsible for an amount regardless of age or income that roughly corresponds to what they get back. Right now, almost 50 % of people pay no income tax. This is unfair.
The first $10,000 should be levied at a rate of about 10 % for each individual. So a family of 4 would have to pay $4,000 or 40 % of the first $10,000. The next $90,000 should be levied at a rate of 5 % each. For a family of 4 making a total income of $100,000, their total taxes would be $8,500. Anything over $100,000 should be taxed at 1 %. There should be no government deductions or favoritism. Mortgage deductions, deductions for children, business losses, gambling losses, etc... Would be gone. Think of how ridiculous the deduction for children is. Children costs government more so why should families pay less for having them? Why are child-less couples and singles subsidizing families ? Why are renters subsidizing home-owners ? Why are intelligent people who are responsible subsidizing risk takers and gamblers ?
Furthermore, all government scams and ponzi schemes would be eliminated; no more social(ist) security, Medicaid, Medicare, medifraud, unemployment schemes, welfare, housing subsidies, etc... would be eliminated. This would save trillions and put an end to these massive fraudulent schemes. If you have a 9th grade math background, you do the math and you will see that you are paying at least twice as much as you will ever get back in any of these scams. In many cases, you will pay into these systems and never see a penny back. If Wall Street did this to people, liberals would be howling.
If people were unemployed, I would support a government system where they would work for the government, at a fair wage, but less than a market wage, doing important projects and getting rid of overpaid sanitation workers and teachers. In this way, we would have 100 % employment. And because these jobs would be below market wages, there would be an incentive for people to leave as soon as jobs became available.
This is a truly fair tax system, and in the bigger picture, everyone wins. The problem is that too many people are short sighted or are trying to pull a scam and get money from other people.