Real Tax Fairness
Our tax system is hopelessly complicated and seriously broken.
Believe it or not, Americans spend $160 billion per year on tax preparation (Paul Ryan’s FY 2013 Budget Proposal), and the IRS’ two-page 1040 short form comes with 88 pages of instructions.
Beyond the hurdles that individuals face when filing their taxes lies the problems with our corporate tax structure.
America is now home to the highest corporate tax rate in the world; higher than Sweden, France, Italy and even Communist China (Wall Street Journal, 4/2/2012). This is no way to jumpstart our struggling economy.
Even worse, as a result of crony capitalism and deep-pocketed special interests that have rigged the system in their favor, big corporations are effectively taxed at half the rate of small businesses and companies that make billions of dollars in profits each year--such as GE--pay little or no taxes.
Small and medium-sized businesses are the engine of our economy, and we must stop stunting their growth if we are ever going to experience real recovery.
Stopping this insanity starts with a plan to achieve real tax fairness.
By lowering individual income tax rates across the board, lowering the corporate tax rate and eliminating corporate welfare and nearly all of the loopholes and deductions that exist, we can provide much-needed relief for hard-working Americans, level the playing field for small and medium-sized businesses and create real and sustainable economic growth.
You can check out my Tax Plan in its entirety by following this link: http://www.ericforsenate.com/wp-content/uploads/2012/04/The-Hovde-Tax-Plan.pdf
St. Swithin
4:21 pm on Thursday, April 19, 2012
GE has become a whipping boy lately. Here is their latest statement about taxes:
"GE’s global tax rate was 29 percent in 2011, up from 7 percent in the year before. GE paid $2.9 billion in income taxes to the IRS and its foreign counterparts. In addition, GE paid more than $1 billion in other state, local and federal taxes in the U.S. GE’s overall income tax rate for the past few years was lower than usual because of significant losses at GE Capital – $32 billion – due to the global financial crisis."
James R Hoffa
8:26 pm on Thursday, April 19, 2012
Mr. Hovde -
While Hoffa is definitely leaning towards supporting you, I honestly expected a much more specific tax plan from you.
While your plan highlights a two-tier personal income tax rate of 10% and 25%, free of loop-holes and deductions, it doesn't specify at what point one would be subject to the 15% higher rate of 25%.
Also, your plan also fails to even mention capital gains, excise, etc. taxes and what you would do with those.
May I offer as an alternative, Hoffa's proposed federal tax plan (subject to revision):
Federal Sales Tax (applicable to ALL transactions): 1.85%
Federal Income Tax (applicable to all gross income and eliminates income adjustment - deductions, exemptions, itemized write-offs, loop holes, eit credits, etc., except in limited circumstances as is necessary to facilitate fairness):
$0 - $75,000 - 8%
$75k - $150k - 10.5%
$150k - $225k - 13%
$225k+ - 15%
Federal Cap Gains Tax (short & long term, bracket neutral): 15%
Federal Corp Profit Tax Non-Manufacturing (offset only by legitimate losses for up to 3 years carried forward): 18%
Federal Corp Profit Tax Manufacturing (offset only by legitimate losses for up to 3 years carried forward): 15%
FICA and FUTA Taxes: reform to opt-in programs and set rates accordingly.
All other federal taxes, with the exception of the federal excise taxes on petro fuels, alcohol, and tobacco products and trade tariffs/taxes with unfair trading nations, will be eliminated.
C. Sanders
9:04 am on Friday, April 20, 2012
@Hoffa: Well done.! You have my vote!
St. Swithin
9:32 am on Friday, April 20, 2012
@Hoffa,
It looks like you put some serious thought into this. As a stand alone tax plan it looks viable. But you and Mr. Hovde are both missing the other half of the equation - does it cover expenses? If these plans do not bring in enough revenue then what do you propose cutting?
Keith Schmitz
9:45 am on Friday, April 20, 2012
Still massive tax breaks for the affluent, which is rapidly building its place as an aristocracy in this country.
James R Hoffa
1:22 pm on Friday, April 20, 2012
@C. Sanders -
Thank you - perhaps I can win an elected position other than President of the IBT ;-)
@St. Swithin -
1) Hoffa's plan greatly expands the base - everyone plays, so everyone has to pay, that's the Hoffa way! Under Hoffa's plan, you're increasing the number of individual income tax payers by over 100%. And the nominal federal sales tax catches those in the underground economy.
2) The federal government must learn to do more with less regardless of how much revenue a tax code collects. As it stands, there is too much waste, irresponsible spending, and total disregard over the stewardship of our tax dollars by Washington! Obama promised hope and change and failed to deliver on both. Hoffa is the real deal Holyfield when it comes to hope and change baby!
@Keith Schmitz -
My plan is in fact progressive, isn't it? Unlike you, Hoffa believes that a person, whether rich or poor, should be able to keep and spend how they see fit a majority of what they rightfully earn. As it stands, a childless single person making $65k a year pays nearly 52.5% of his gross income in taxes - federal, state, excise, sales, property, etc. That's ridiculous! If the government was so effective and efficient in spending the money it collects, then:
1) it wouldn't have to borrow even more; and
2) our economy would be booming. But neither is happening. In fact, we're borrowing more now than ever before, and our economy is stagnant. Is that the hope and change you expected?
James R Hoffa
1:32 pm on Friday, April 20, 2012
@Keith (continued) -
You'll also note how under Hoffa's plan, the 'rich,' whether they earn through income or capital gains, are paying at almost double the rate of a 'poor' person. Isn't that fair enough?
In fact, the only people that will be paying higher taxes under Hoffa's plan are those that currently don't pay anything at all, or near nothing.
Isn't that the fairest solution for everyone? I thought your side was all about the collective good. What's fair about letting the very poor and very rich get away with paying nothing or next to nothing?
Hoffa's code treats everyone equally by the numbers and there is no room what-so-ever for crony special interest treatment of anyone, PERIOD!
If you've got something better though, please indulge us and allow the Patch community to judge who's plan is preferred.
Concerned Citizen
9:53 am on Monday, April 23, 2012
I see a problem with this plan in the reporting of income. A very large portion of income is unreported, especially by small business owners and independent contractors. Any cash that changes hands is subject to non-reporting. And retail businesses in particular handle a lot of cash. I know owners who don't report any of their cash transactions as revenue. And I know an independent contractor who paid cash for a newly built home using payments made to him as an independent contractor, which were not reported to the IRS. As tax preferences are eliminated, the small business owner and independent contractor will hide even more income. If ALL income that passes through the underground economy were reported, we would all enjoy lower tax rates with no significant reduction in services.
madmilker
10:03 am on Friday, April 20, 2012
Just read the PDF file "pledge"....
duh!
["Eliminate corporate welfare and nearly all of the loopholes and
deductions that have bankrupted our country and created crony
capitalism"]
....duh! "and nearly all"....now, that could be as many as a washtub full or as few as a bar of soap.
Maybe you would be much better off if you pledge what the people that you would represent want cause I don't think this O'fart reads the words "and nearly all" in their thoughts.
Matthew 9:4
Randy1949
11:04 am on Friday, April 20, 2012
Yes, does 'nearly all' include the standard deduction? Because that would more than double my federal income tax while affecting a $1 million+ per year earner not at all.
It also kind of depends on whom Mr. Hovde plans to represent. Somehow, I don't think it's people like me.
Johnny Blade
12:00 pm on Friday, April 20, 2012
End the FED, END the criminal IRS, End the income tax ... Cut the bloated overspending by our government ... stop whining when you don't get your free stuff
$$andSense
8:51 pm on Monday, April 23, 2012
Hey cigar man
Why do we need fed income tax to begin with? Didn't exist until some 100 years ago. You like paying taxes? In fear of your shadow that you need the fed to protect you? Chicken s--t?
Randy1949
2:31 pm on Wednesday, April 25, 2012
Why have any taxes, period? Street lights should be coin operated. Avoiding that package of beef with Mad Cow in it will keep life interesting. And pay a monthly protection fee to a private standing army, or watch while your wife gets ravished by hordes of Canadian invaders. We have to stop coddling people who don't create jobs.
Alfred
2:33 pm on Wednesday, April 25, 2012
Now Randy, we are all carrying your water, please do not bite the hand that feeds you.
Randy1949
2:40 pm on Wednesday, April 25, 2012
And what leads you to believe that, Alfred? You think I don't pay taxes?
I really hope you didn't learn your writing skills in public school because I pay quite a bit for that, and you can't spell for beans.