JustThinking.us

Your Uncle Roany is a simple man.

So, as I continue my rant on "How They Keep Us Apart" I'm going to use simple numbers.

Consider a system of taxation wherein:

Everybody files as an individual (no joint filing)

The first $20,000 of income is exempted from taxation.

All payroll taxes are abolished (FICA et. al.) (among others).

All deductions from taxable income are abolished.

All of em ......... quit your whining ......... no exceptions!

The one and only, universal rate is 20%.

God himself only asked for 10%.

So, if you make $20,001.00, you pay 20 cents in taxes, or 0.001% of your total income in taxes.

That's affordable.

If you are a couple, regardless of your status and each of you are making $20,001.00 a year, your total taxes will be 40 cents and your rate will still be 0.001%.

Still affordable. 

If you make $25,000, you pay $1000.00 in taxes or 4% of your total income in taxes.

Notice here that $1000,00 is more than 20 cents.

And .......

4% is more than 0.001%.

Let's say you make $50,000.00, you pay $6000.00 in taxes, or 12% of your total income.

$6000.00 is more than $1000.00 and way more that 20 cents.

And ...

12% is more than 4% and much, much higher than 0.001%.

Let's say you attain that magical number of $250,000 and are now "Rich".

You pay $46,000 in federal income taxes, or 18.4% of your total income.

Which is, I am sure you know by now, more than .......... etc.

How bout a cool million?

You pay $196,000 in federal income taxes, which represents 19.6% of your total income.

What if you are Tiger Woods and you used to make $80,000,000 a year?

Under this system you would have paid $15,996,000.00 in federal taxes or 19.9955% of you total income in taxes.

What I've described here is what is typically described as "The Flat Tax".

But, as far as I'm concerned, it ain't flat at all.

The more you make, the more you pay in taxes, which is as it should be if you're gonna tax income.

And ..... the more you make, the higher your tax rate.

Although it does flatten out at the very top.

Still, it is "progressive".

The gravy here is that you can now fire your accountant (Sorry Doug, Willy, Loris. This isn't personal, and I still love you all very much) and most of the IRS.

I'm still asking myself two questions .

Does this work at the corporate level?

Is the gross number from this system sufficient to fund the greedy, incompetent bastards in Washington DC?