I have been hearing a lot of buzz about tax cuts and I'm starting to think the tax rules are too complex. 57.7% of the nations income after tax goes to the wealthiest 1%. Those are the folks making at least $700,000 a year after taxes. They are educated about all the tax shelters and can afford the tax attorneys. They can afford to invest in tax shelters and play the money games in a way that they pay very little as a share of their gross income.
What if we simplified the tax system by taking away those complex rules leaving only one exemption with a flat percentage tax after that point. Everyone has housing, medical, transportation and food expenses. I am floating the idea of a $50,000 personal deduction. The deduction will not apply to corporations. The deductions are not transferable so there is no bonus for having or adopting children. The deduction should be tied to the inflation rate. After that pay a flat 40% tax on remaining income.
It's simple so that anyone who has a sixth grade education can figure out what they owe. Some whining libertarian might complain that it will stifle investment, but if they were taxed at 40% people would tend to leave their money invested were it is until they needed to use it anyone who understands compound interest should see the motivation in this.
The only problem with this is our congress is bought and paid for by corporations and extremely wealthy individuals. They are working with the press and the think tanks spin-doctors to make sure you stay out of the national political loop. In spite of the recent campaign scandals no true campaign finance reform has been suggested.
Money drives the system. It is time to put money back in the hands of the everyday Americans.