I would propose a drastic change in our tax code.
1. Totally eliminate income taxes on salaries or dividends. Poof! Gone, Finished, DOA. This would include an end to corporate taxes.
2. Tax net worth of individuals.
( this includes those who own corporations or stocks of course so Corporations are technically not off the hook )
At the end of each year:
Every business, who does business, or holds a bank account, under any legal form, in the USA or who has at least one owner/shareholder who is an American Citizen or permanent legal resident, files an information return to publicly declare it’s net worth and value of shares of stocks, if public, which shall be used by those who own said company, or it’s stocks, for calculating their taxable worth. This must be done no less than 90 days prior to filing deadlines for individuals. All such informational business filings shall be public record including accounting documentation.
Churches shall still file in informational return. Church net worth remain exempt for their official church business related to charitable work, structures, pastors official church provided residence up to a certain dollar value and funds used for church business. Any expenses, or activity undertaken for a political purpose, shall be considered as net worth for the fair market value of such actions, ie. as promotional or advertising value.
A. Tally up everything you own and total it’s value. EVERYTHING except your pet snake. This includes the value of your interests in corporations including stocks.( unless it is a very rare and valuable acquisition! )
B. Total everything you owe to any third party, bank etc. (Documentation must be available). Debts, credit cards, mortgages, property taxes ( But not granny’s new dentures )
Subtract B from A and you pay taxes on your net worth.
C. If your net worth is less than, say $200,000 you file a return but pay nothing. That relieves most working families and the value of most families homesteads.*
I am not going to propose any specific tax rate...that is better determined by qualified persons with an real clue as to these things. It would not have to be really high. Perhaps no more than 5-10% ?
A suitable ( and adjustable ) portion of these taxes go to a universal health care and social security. These would not be a separate listed tax as the are now but come as a percentage of tax revenue collected. IRS collects $$ puts into three piles. General Revenue, Medicare, Social Security.
* No loopholes. No exemptions except for children under 18 living at home or for care for disabled at home.
Imagine our tax code fitting in one book instead of room full of books!
