Issue Position: Tax Reform

Issue Position

"Where there is an income tax, the just man will pay more and the unjust less on the same amount of income." -- Plato

"The hardest thing in the world to understand is the income tax." -- Albert Einstein, physicist

The United States has the most complicated tax system in the world. The Internal Revenue Code (IRC) is equivalent to about 5 bibles. It is estimated that in the last 2 decades, the tax code has changed more than 15,000 times. That is an average of more than 2 changes a day. The tax code is not fair because it penalizes a tax payer for being single. It penalizes a married couple if both work and have an above average income. It basically penalizes individuals for renting because they are not entitled to mortgage interest deductions. We can go on and on with the unfairness of the code. The best solution to this is to eliminate all deductions except charitable donations and make the rate as low as possible. Deductions and loopholes are ways for the wealthy to avoid paying taxes, not truly a way to help the lower and middle income earners. I'm not against those that have getting more. I'm all for it. In a fair world one rate would apply to every individual. I just want justice because all these thousands of laws don't help the average American worker. When the personal income tax was first instituted temporarly in 1862 to help finance the civil war, the rate started at 3%. I believe that is a good place to start. There is absolutely no reason to have thousands of tax laws. Who does that benefit? Oh, thats right, the wealthy, lawyers, accountants and most importantly those elected to congress. Have you ever seen an election were candidates don't argue over the tax rate in order to get a vote from a particular class. Simplify it, so even a 10 year old can understand it.

Here are my proposals:

(THIS IS NOT TO BE SET IN STONE BUT TO BE A MODEL OF HOW THE SYSTEM SHOULD LOOK LIKE)

All married couples with two incomes will file income taxes separately.

The earned income credit will remain in place (will likely require annual adjustments).

ALL INCOME that is unearned will be taxed at 35% (stocks, real estate, dividends, corporate bonuses, etc.,) (Primary residence will never be taxed for profit)

The rate starts at 3% and caps off at 25%.

$1.00 up to $29,999.99 = 3%

$30,000 and up = 4%

$40,000 and up = 5%

$50,000 and up = 6%

$60,000 and up = 7%

$70,000 and up = 8%

$80,000 and up = 9%

$90,000 and up = 10%

$100,000 and up = 11%

$110,000 and up = 12%

$120,000 and up = 13%

$130,000 and up = 14% (Mitt Romney rate after earrnings of $14 million in 2012)

$140,000 and up = 15%

$150,000 and up = 16%

$160,000 and up = 17%

$170,000 and up = 18% (President Obama rate after earnings of $608,000 in 2012)

$180,000 and up = 19%

$190,000 and up = 20%

$200,000 and up = 21%

$210,000 and up = 22%

$220,000 and up = 23%

$230,000 and up = 24%

$240,000 and up = 25%

God willing, we finally pay off the National Debt and maybe we can lower these percentages so tax payers such as Mitt Romney and President Obama can enjoy their current rates.

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