THERE COULD BE A BETTER WAY!
The PUP Tax plan is a tax plan that is both fair and easy to understand and generates the same or more tax revenue as the current four-million-word-plus word tax code. It's easy to understand and implement. It will put lots of lobbyists, tax preparers, and TurboTax out of business, but the resources and work-hours saved by this change will more than make up for it. The Universal Basic Income component will also be huge in eliminating poverty and reducing the need for many social support services.
Some features:
Here's how it could work:
Using very rounded numbers, the tax table would be as follows:
Your Income Range Taxed At
0-$50,000 /year: 10% tax bracket : $5000
$50,000-$100,000/year: 20% tax bracket : $10,000
$100,000-$200,000/year: 30% tax bracket: $30,000
$200,000-$300,000/year: 40% tax bracket: $40,000
$300,000-$400,000/year: 50% tax bracket: $50,000
$400,000-$500,000/year: 60% tax bracket: $60,000
$500,000-$1,000,000/year: 70% tax bracket: $350,000
$1,000,000+/year: 80% tax bracket: $350,000 +
Every US Citizen over the age of 18 would get $1000/month. For each of the first two children you have, you get another $250/month. This is Universal Basic Income component. Your tax return would be one page: What was your income last year (all sources)? See tax table above for calculating.
Let's do our real life examples again using the PUP Tax Plan:
Joe Worker: If Joe Worker made $30,000, his income would be taxed at 10%. So, his taxes would be $3,000. However, with his UBI checks, Joe's actual tax paid would be negative. He would end up with $9,000 more in his accounts because of this tax plan. Effective tax rate: 0%.
Professional Bob: If Professional Bob made $110,000, his first $50,000 would be taxed at 10% and his second $50,000 would be taxed at 20%. Finally, $10,000 would be taxed at 30%, resulting in a total tax bill of $18,000. This would have been withdrawn from hisW-2 if that were his only source of income. Again, with UBI checks, Professional Bob's actual tax paid would only be $6000, an effective tax rate of 5%.
Richie Fatcat: If Richie Fatcat made $2,000,000 in income and investments, he would be taxed at all the tax rates for the lower portions of his income and then 80% on the amount over $1,000,000. This would result in a tax bill of $545,000 for the first million in income and $800,000 for the second million, resulting in a total tax bill of $1,345,000. But with your UBI checks, it would be $1,333,300, an effective tax rate of 66%.
Issues, Objections, and Responses:
Rich people and multi-national corporations shift their income overseas to shelter it and hide it. Yes, they do! Preventing money from leaving the country or charging a percentage fee to do so would be a way to deal with this.
What about MY favorite deductions and credits? Charitable deduction, mortgage interest deduction, solar power credit, earned income credit, etc. One of the reasons the tax code is so complicated is that all these interest groups have lobbied to put their interests into our tax code. Removing that ability, minimizes the power of the lobbyists. The tax code is not the place for housing or energy policy. The UBI income component replaces the need for the earned income credit and will also drastically reduce the need for charitable organizations helping those in poverty.
The rich, the corporations, and the lobbyists will fight this. Yes they will, but while money has way too much influence in politics, we still have elections, and if we can win elections, we can effect these changes.
We can't pay for it!! We have a debt based currency. Because money is created as debt, there is interest running on the currency, but there's not enough money in the system to cover the interest. The national debt can't be paid back, it's literally impossible. The only thing that keeps this ponzi scheme going is the growing money supply. It's like a game of musical chairs- as long as the music doesn't stop, everything seems okay. We can pay for it, money isn't anything but digital bits that are used to account for exchange of value. We certainly can create the digital bits we need to do this.
Sounds good, but this will never happen! Before 1913 and the 16th amendment, the income tax and the federal reserve did not exist. The income tax forms were one page long and had a 1% top tax rate. Things can change. One of the biggest obstacle to changes is the belief that it can't happen. It won't be easy, but it can happen. And if you really want it to change, it can and will.
Some features:
- More tax brackets on both income and estate taxes.
- Universal Basic Income Component: Expand social security and medicare to all ages.
- Eliminate Deductions/Credits
- Eliminate type of income distinctions
- Eliminate corporate rate differences
- Eliminates tax 'advantages' of undocumented workers
- Reduces need for food stamps, welfare, unemployment, housing assistance.
Here's how it could work:
Using very rounded numbers, the tax table would be as follows:
Your Income Range Taxed At
0-$50,000 /year: 10% tax bracket : $5000
$50,000-$100,000/year: 20% tax bracket : $10,000
$100,000-$200,000/year: 30% tax bracket: $30,000
$200,000-$300,000/year: 40% tax bracket: $40,000
$300,000-$400,000/year: 50% tax bracket: $50,000
$400,000-$500,000/year: 60% tax bracket: $60,000
$500,000-$1,000,000/year: 70% tax bracket: $350,000
$1,000,000+/year: 80% tax bracket: $350,000 +
Every US Citizen over the age of 18 would get $1000/month. For each of the first two children you have, you get another $250/month. This is Universal Basic Income component. Your tax return would be one page: What was your income last year (all sources)? See tax table above for calculating.
Let's do our real life examples again using the PUP Tax Plan:
Joe Worker: If Joe Worker made $30,000, his income would be taxed at 10%. So, his taxes would be $3,000. However, with his UBI checks, Joe's actual tax paid would be negative. He would end up with $9,000 more in his accounts because of this tax plan. Effective tax rate: 0%.
Professional Bob: If Professional Bob made $110,000, his first $50,000 would be taxed at 10% and his second $50,000 would be taxed at 20%. Finally, $10,000 would be taxed at 30%, resulting in a total tax bill of $18,000. This would have been withdrawn from hisW-2 if that were his only source of income. Again, with UBI checks, Professional Bob's actual tax paid would only be $6000, an effective tax rate of 5%.
Richie Fatcat: If Richie Fatcat made $2,000,000 in income and investments, he would be taxed at all the tax rates for the lower portions of his income and then 80% on the amount over $1,000,000. This would result in a tax bill of $545,000 for the first million in income and $800,000 for the second million, resulting in a total tax bill of $1,345,000. But with your UBI checks, it would be $1,333,300, an effective tax rate of 66%.
Issues, Objections, and Responses:
Rich people and multi-national corporations shift their income overseas to shelter it and hide it. Yes, they do! Preventing money from leaving the country or charging a percentage fee to do so would be a way to deal with this.
What about MY favorite deductions and credits? Charitable deduction, mortgage interest deduction, solar power credit, earned income credit, etc. One of the reasons the tax code is so complicated is that all these interest groups have lobbied to put their interests into our tax code. Removing that ability, minimizes the power of the lobbyists. The tax code is not the place for housing or energy policy. The UBI income component replaces the need for the earned income credit and will also drastically reduce the need for charitable organizations helping those in poverty.
The rich, the corporations, and the lobbyists will fight this. Yes they will, but while money has way too much influence in politics, we still have elections, and if we can win elections, we can effect these changes.
We can't pay for it!! We have a debt based currency. Because money is created as debt, there is interest running on the currency, but there's not enough money in the system to cover the interest. The national debt can't be paid back, it's literally impossible. The only thing that keeps this ponzi scheme going is the growing money supply. It's like a game of musical chairs- as long as the music doesn't stop, everything seems okay. We can pay for it, money isn't anything but digital bits that are used to account for exchange of value. We certainly can create the digital bits we need to do this.
Sounds good, but this will never happen! Before 1913 and the 16th amendment, the income tax and the federal reserve did not exist. The income tax forms were one page long and had a 1% top tax rate. Things can change. One of the biggest obstacle to changes is the belief that it can't happen. It won't be easy, but it can happen. And if you really want it to change, it can and will.