Primary Principle – Taxes should be used primarily to fund government operations and not for economic incentives. Too often breaks have unintended consequences and fail to stimulate the economy.

Personal Income Tax

Eliminate AMT and all tax credits. Tax credits while those for race horses benefit the few in the expense belonging to the many.

Eliminate deductions of charitable contributions. Need to one tax payer subsidize another’s favorite charity?

Reduce a child deduction the max of three younger children. The country is full, encouraging large families is carry.

Keep the deduction of home mortgage interest. Owning a home strengthens and adds resilience to the economy. When the mortgage deduction is eliminated, as the President’s council suggests, the country will see another round of foreclosures and interrupt the recovery of layout industry.
Allow deductions for education costs and interest on student loan. It is advantageous for the government to encourage education.

Allow 100% deduction of medical costs and health insurance. In business one deducts the price producing wares. The cost at work is simply the repair of ones fitness.

Increase the tax rate to 1950-60s confiscatory levels, but allow liberal deductions for “investments in America”. Prior on the 1980s salary tax code was investment oriented. Today it is consumption oriented. A consumption oriented economy degrades domestic economic health while subsidizing US trading partners. The stagnating economy and the ballooning trade deficit are symptoms of consumption tax policies.

Eliminate 401K and IRA programs. All investment in stocks and bonds always be deductable and only taxed when money is withdrawn among the investment areas. The stock and File Gstr 3B Online bond markets have no equivalent to the real estate’s 1031 flow. The 1031 property exemption adds stability to your real estate market allowing accumulated equity to be utilized for further investment.

(Notes)

GDP and Taxes. Taxes can fundamentally be levied as a percentage of GDP. Quicker GDP grows the more government’s chance to tax. Within the stagnate economy and the exporting of jobs coupled with the massive increase with debt there isn’t really way united states will survive economically your massive take up tax proceeds. The only way possible to increase taxes end up being encourage an enormous increase in GDP.
Encouraging Domestic Investment. The actual 1950-60s taxes rates approached 90% to find income earners. The tax code literally forced financial security earners to “Invest in America”. Such policies of deductions for pre paid interest, funding limited partnerships and other investments against earned income had the dual impact of accelerating GDP while providing jobs for the growing middle class. As jobs were created the tax revenue from the center class far offset the deductions by high income earners.

Today plenty of the freed income contrary to the upper income earner has left the country for investments in China and the EU at the expense of the US financial system. Consumption tax polices beginning globe 1980s produced a massive increase inside of the demand for brand name items. Unfortunately those high luxury goods were frequently manufactured off shore. Today capital is fleeing to China and India blighting the manufacturing sector belonging to the US and reducing the tax base at a time when debt and an ageing population requires greater tax revenues.

The changes above significantly simplify personal income place a burden on. Except for making up investment profits which are taxed at capital gains rate which reduces annually based using a length of energy capital is invested the number of forms can be reduced any couple of pages.

Property taxes to Encourage Investment