What Would This Do to Tax Revenue?

ForceoftheTruth · #1 (**permalink**) 02-22-2006, 11:08 AM

Quote:

Originally Posted by ForceoftheTruth";p=&quot

This is my tax plan. It ignores dependents and allows for no tax breaks. First, this is what I think should be done to personal income taxes:

Under $16,000: $0

$16,000 to $30,000: $0 + 15% of the amount over $16,000

$30,000 to $100,000: $2,100 + 20% of the amount over $30,000

$100,000 to $250,000: $16,100 + 40% of the amount over $100,000

$250,000 to $1,000,000: $76,100 + 60% of the amount over $250,000

Over $1,000,000: $526,100 + 70% of the amount over $1,000,000

... And corporate taxes:

50% flat tax (No loopholes or exemptions)

... And finally, inheritance taxes:

99% of the amount over $1,000,000, 0% of the amount under $1,000,000

On a side note, I'm curious about what this plan would do to your tax bills. I appreciate all replies. Thank you very much.

Would this plan increase revenue (if so, by how much?) or have I gone over the top of the Laffer curve given the current economic situation? I appreciate all replies. Thank you very much.

poletree · #2 (**permalink**) 02-22-2006, 11:11 AM

I'm no expert but I would wager that it would go down. People would start doing a lot more work under the table and there would also be a major loss of businesses to other countries.

stekim · #3 (**permalink**) 02-22-2006, 11:13 AM

Seems simple enough. If you remove the incentive to create wealth people won't do it. That kills the economy and lowers revenue.

ForceoftheTruth · #4 (**permalink**) 02-22-2006, 11:20 AM

Do you have any statistical measure to support your theory, stekim?

stekim · #5 (**permalink**) 02-22-2006, 11:32 AM

It's self evident. Massive tax rates destroy the motivation to create wealth. Who would ever seek to create something that is going to be stolen from them? Precious few people. So you have less income being taxed and end up with less tax revenue. Your economy dries up.

Look to the Sweden thread. Their tax rates are no where near the levels you are suggesting and their economy no longer grows. Had they adopted your plan they would no longer have an economy.

Also look to the world. The countries with the highest tax rates (Europe mostly) are growing the slowest. The ones with the lowest tax rates (Asia mostly) are growing the fastest. Big shock.

JavaBlack · #6 (**permalink**) 02-22-2006, 11:46 AM

America is a better example than Asia. The Asia/Europe discrepancy could also be due to the fact that European economies are old and Asian economies are in the early processes of development in comparison.

ForceoftheTruth · #7 (**permalink**) 02-22-2006, 11:52 AM

Stekim, Sweden's problem is that it spends too much. I wouldn't do that. I would also eliminate all corporate tax breaks and loopholes, which actually amounted to $3.5 trillion dollars in lost revenue over a four year period.

stekim · #8 (**permalink**) 02-22-2006, 11:56 AM

It spends a lot because it collects all it can.

Quote:

America is a better example than Asia. The Asia/Europe discrepancy could also be due to the fact that European economies are old and Asian economies are in the early processes of development in comparison.

That is certainly a major part of it, but see what happens to Asian economies if they adopt European or Force tax policies.

ForceoftheTruth · #9 (**permalink**) 02-22-2006, 12:08 PM

Okay, back to the drawing board. I'm staying on the left, but I'll have to come up with a better tax plan.

Hansmoleman · #10 (**permalink**) 02-22-2006, 12:10 PM

Quote:

Originally Posted by ForceoftheTruth";p=&quot

Stekim, Sweden's problem is that it spends too much. I wouldn't do that. I would also eliminate all corporate tax breaks and loopholes, which actually amounted to $3.5 trillion dollars in lost revenue over a four year period.

the money has to come from somewhere. Sweden has extremely high taxes. For a little while, socialists everywhere were marveling at Sweden as a socialist uptopia, but the inevitable happened. Their economy is no longer growing and it is more and more evident that America's model of a more pure capitalist, free market economy with relatively low taxes is far superior.

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