Massive sinus headache. Should have tried the following approach first, instead of losing my temper.
Under the current plan you are defending, using the 2011 tax rate as Married Filing Jointly with $11,600 standard deduction and having earned $100,000 income with $10,000 in capital gains for a total of $110,000 gross income. You pay at best 20% capital gains or at worst 28%. So you have $8000 from net capital gains (after paying at least $2000 in tax). Your taxable income is $88,400( $100,000-11,600 standard deduction ) at 25%= $22,100 tax paid ) leaves $66,300. Your total tax paid is $24,100, leaving you a grand net total of $85,900 income that the government kindly allows you to keep.
Under my plan you have a total income of $110,000 with the first $24,000 tax free. That leaves you with $86,000 in taxable income, and you pay at 10% or $8,600. Your grand net total is $101,400.
This requires federal spending cuts, especially in the military, ending all the wars including the war on drugs as well as ending the agencies Dr. Paul has recommended.
Under my plan you have an additional $16,500 income to spend which would be invested and lead to the creation of production and service jobs, increased savings and allow people to pay down debt. These new jobs would create more taxpayers by decreasing unemployment, and make up lost tax revenue from current taxpayers paying less taxes. The present plan that you are defending stifles growth for the lower and middle classes and prevents upward mobility.
Exceptions and exemptions are fraud as they promote elitism. What I am recommending is egalitarian. The current system is progressive and regressive.
Under the 2011 tax code Married Filing Jointly making $30,000 with no capital gains has a standard $11,600 deduction which leaves $18,400 taxable income at the rate of 15%. Tax owed is $2760. Net total income is $27,240.
Under my plan they would have a total income of $30,000 with the first $24,000 tax free. That leaves $6,000 taxable income with $600 paid. Total net income would be $29,400.
Report: A quarter of U.S. millionaires pay taxes at a lower rate than some in middle class
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