All American Tax Plan

Uncategorized Apr 10, 2019

Bottom Line Up Front 

The American Citizen does not exist to fund government.

The All American Tax Plan promotes individual liberty, incentivizes savings, rewards entrepreneurship and discourages weak politicians from engaging in Marxist class warfare. 

Revenue Neutral? 
I literally don't care. The federal bureaucracy works with what we the people give it, not the other way around. 

It IS NOT my job to fund a $4 TRILLION budget. 

It IS NOT your job to fund a $4 TRILLION budget.

It IS the government's job to work within the bounds of the Constitution and spend less than it receives. 

Growth? 
Hell yes. We're blowing the doors off. 

Individual Rates

15%: $1 - $50,000

20%: $50,000.01 - $1 million 

25%: more than $1 million 

If you earn income you pay income taxes. We're all in this together. 

Rates are low and less progressive. Progressive tax structures are inefficient, produce income inequality (looking at you, California and NY) and are un-American. Yes, I said it...try not to cry in your government issued soup Mr. Socialist. 

The Bernie Bracket
An alternative tax rate of 70% is available. Simply select the Bernie Bracket and the federal government will take 70% of your income. 

Deductions and Credits
Standard deduction is $10,000 per adult. 

Mortgage deduction remains. 

Charitable deduction is unlimited. 

Child Tax Credit is $15,000 the year they are born and $5,000 every year thereafter. The tax credit only applies to earned income...we aren't sending you $25,000 for your 5 kids if you don't work.  

That's it. Nothing else. 

Tax Free Savings
It's time to reward sound financial planning. 

  • Health Savings Accounts - $100,000 annual limit. 
    • Money in the HSA can roll over until you're dead.
    • You can withdraw funds for qualified medical expenses tax free.
    • Non qualified withdrawals are taxed at 25% until age 65. 
    • After age 65 you can withdraw funds for any purpose tax free. 
    • Parents can leave accounts to children when they die. Just like Social Security and Medicare...no, wait...the government keeps everything you've paid in when you die. 
  • Individual Retirement Accounts - $100,000 annual limit.
    • You can withdraw funds for qualified education expenses tax free.
    • Non qualified withdrawals are taxed at 25% until age 60. 
    • After age 60 you can withdraw funds for any purpose tax free.
  • Down Payment Savings Account - $100,000 annual limit.
    • You can withdraw funds to buy a house tax free.
    • You can withdraw funds for a downpayment on a  house tax free.
    • Non qualified withdrawals are taxed at 25% until age 60. 
    • After age 60 you can withdraw funds for any purpose tax free.
    • Parents can leave accounts to children when they die.
  • Education Savings Account - $100,000 annual limit.
    • You can withdraw funds to pay for qualified education expenses tax free.
    • It doesn't have to be college. It can be a trade school, private school, homeschool expenses, etc. Go nuts. Educate your kids. 
    • Non qualified withdrawals are taxed at 25% until age 60. 
    • After age 60 you can withdraw funds for any purpose tax free.
    • Parents can leave accounts to children when they die.

Rules for the Government 
Remember, the Constitution sets the rules for the government not the other way around. 

Brackets are adjusted annually for inflation. 

If one bracket increases all other brackets increase by the same amount. 

If income levels are reduced in an attempt to increase rates on higher earners all rates are reduced at 2x the percentage the income level is reduced. In other words, Congress can't change the rates. 

Corporate Tax Plan 

This is easy. 

Rates
15% of profit or 2% of revenue. 

The business chooses the rate it wishes to pay. 

Federal Sales Tax

A 1% federal sales tax shall be applied to all sales in the United States. 

Sales taxes are more efficient than income taxes. They are also difficult to raise since EVERYONE pays the tax when making a purchase. 

If the government wants more money it can no longer pretend it's taking it from "the rich". It will have to tell the truth, "we want more of your money to spend as we see fit". 

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