I have been thinking about income taxes for a long time. I AM of the opinion that income taxation is a valid source of Federal and State income, just like tariffs are. I am also of the opinion that the current taxation policies are punitive to poorer households.
So... here we go:
Individual - all income
- $6240 Std Deduction (52 weeks * 5 days/wk * 24 semi-monthly paydays)
- $6240 Exemption per Household Member (52 weeks * 5 days/wk * 24 semi-monthly paydays)
if based on only deduction: (semi-monthly=$260 exempt per payday; bi-weekly=$240 exempt per payday; weekly=$120 exempt; daily=$24 exempt; everything over this is taxed)
if exemption too, add per each household member: (semi-monthly=$260 exempt per payday; bi-weekly=$240 exempt per payday; weekly=$120 exempt; daily=$24 exempt; everything over this is taxed)
Single person household: (semi-monthly=$520 exempt per payday; bi-weekly=$480 exempt per payday; weekly=$240 exempt; daily=$48 exempt; everything over this is taxed)
Couple 1-income: (semi-monthly=$780 exempt per payday; bi-weekly=$720 exempt per payday; weekly=$360 exempt; daily=$72 exempt; everything over this is taxed)
Couple 2-income: 1 person counts as Single for exempt, 1 person counts as Deduction Only
Family of 2 adults and 2 children w/ 1-income: (semi-monthly=$1300 exempt per payday; bi-weekly=$1200 exempt per payday; weekly=$600 exempt; daily=$120 exempt; everything over this is taxed)
Option: claim 1+ fewer exemptions.
Not Option: claim 2+ more exemptions. Only 1 extra claimable AND must file a full tax form in that case, instead of a "short" form.
- full medical payment deduction (with receipts and bills/statements)
- full house payment interest deduction (with receipts and bills/statements)
- 1/2 energy efficiency upgrade cost deduction (emphasis on UPGRADE)
- 1/2 childcare cost deduction (with receipts and bills/statements)
- 1/2 medical insurance cost (with receipts and statements)
- 20% tax rate on remainder
(Business, Corporate, Religious, & Military are addressed below the fold.)
Business - all income
- $12480 base exemption
- w/o record/receipts, no extra deductions claimable (hearsay is NOT proof, even if witnessed)
- full medical insurance cost deduction (with receipts and bills/statements)
- full employee wage deduction (with record of same and bank statements, FICA included)
- full debt payment (not interest) deduction (with receipts and bills/statements)
- full materials cost deduction (with receipts and bills/statements, non-farm-machinery fuel/non-fleet fuel excepted)
- full utility cost deduction (with receipts and bills/statements)
- $15% tax rate on remainder
Corporate - all income (if not territorial)
- $24960 base exemptions
- w/o record/receipts, no extra deductions claimable (hearsay is NOT proof, even if witnessed)
- full dividend cost deduction (with statements)
- full medical insurance cost deduction (with receipts and bills/statements)
- full employee wage deduction (with record of same and bank statements, FICA included)
- full debt payment (not interest) deduction (with receipts and bills/statements)
- full materials cost deduction (with receipts and bills/statements, non-farm-machinery fuel/non-fleet fuel excepted)
- full utility cost deduction (with receipts and bills/statements)
- $10% tax rate on remainder
- EXCEPTION*: If a corporation insists on being counted as an individual, that corporation reverts to the Individual tax rate AND deduction/exemption (i.e. counts as single person household) for the whole of that tax year.
if $1 mil earned and $2 mil spent, nothing taxable
if $1 bil earned and $10 mil spent, $990 mil taxable ($99.675 mil tax)
failure to pay tax bill, for more than 2 yrs consecutive, revokes right to sell in U.S. (becomes a Federal felony to do business, in U.S., with said corporation)
Re: if you make a fortune off of the U.S., then you pay your share or lose your market.
Corporate - U.S. income + U.S. expenses (if territorial)
- only earnings in U.S. and its' territories borders (and economic exclusion zones) count as earnings
- only expenses in U.S. and its' territories borders (and economic exclusion zones) count as costs paid
- $25000 base exemption
- w/o record/receipts, no extra deductions claimable (hearsay is NOT proof, even if witnessed)
- full dividend cost deduction (with statements)
- full medical insurance cost deduction (with receipts and bills/statements)
- full employee wage deduction (with record of same and bank statements, FICA included)
- full debt payment (not interest) deduction (with receipts and bills/statements)
- full materials cost deduction (with receipts and bills/statements, non-farm-machinery fuel/non-fleet fuel excepted)
- full utility cost deduction (with receipts and bills/statements)
- $10% tax rate on remainder
- EXCEPTION*: If a corporation insists on being counted as an individual, that corporation reverts to the Individual tax rate AND deduction/exemption (i.e. counts as single person household) for the whole of that tax year.
if $1 mil earned as above and $2 mil spent as above, nothing taxable; even if worldwide was $1 bil earned and $5 mil spent
if $1 bil earned as above and $10 mil spent as above, $990 mil taxable ($99.675 mil tax); even if worldwide was $1.1 bil earned and $1.05 bil spent
failure to pay tax bill, for more than 2 yrs consecutive, revokes right to sell in U.S. (becomes a Federal felony to do business, in U.S., with said corporation)
Re: if you make a fortune off of U.S., then you pay your share or lose your market.
(I prefer the territorial corporate tax, as it is fairer to corporations and Americans. Unfortunately, many people want foreign corporations to pay taxes on U.S. earnings AND U.S. corporations to pay taxes on ALL earnings. That is about as fair as applying the business-intended Alternative Minimum Tax (AMT) to individuals - which is happening now.)
Religious
- If any political payments/donations made by a given religious group (a church, a synod agency, etc.) that specific group reverts to the Business tax rate AND exemptions for the whole of that tax year.
1 church making a political donation/payment affects only that 1 church's status.
a synod agency making a political donation/payment affects only that agency's status.
a synod's member churches making political donations/payments results in changing all of the donors' statuses.
- Otherwise, 100% exempt.
Re: enforces Federal separation of religion and government.
Military Personnel
- 100% exempt from Federal income tax
Re: We support our defenders, right? (Right?!)
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Rant: Legal rights laws should be duplicated separately and explicitly for individuals and for businesses and corporations. The decision to have corporations "count as individuals" with respect to legal rights was one of the STUPIDEST decisions in the history of America. (This was one of the first decisions that led to today's corporate personhood crisis.) Also see 203 U.S. 243 and USC 1.1; as opposed to the dissenting opinion in 337 U.S. 562.