Using the Old Testament as his inspiration, Dr. Carson espouses a 10% flat tax that everyone—individuals and corporations—would pay. No deductions. No loopholes. Everyone has skin in the game. "Seemed to work pretty good for God, why not for the USA?", Dr. Carson asks.
Sounds pretty good, especially the "skin in the game part." In plain English: No free lunch. Every wager earner should have some skin in the game!
It's a plan that could work and probably very well for the USA. But there are simply too many vested interests that would keep this plan from becoming law. They've demonstrated their power to do so since Jack Kemp first proposed a similar plan 3+ decades ago…the biggest vested interests being the IRS, income tax lawyers and tax preparation firms, the real estate industry, charitable organizations, and the civil service union bosses.
The political problem with Dr. Carson's plan, of course, is the disproportionate real $$$ cost borne by low income earners. That's easily dealt with by exempting anyone earning a salary below a defined cut off, for example, $30k/year. However, what most people don't know is that government entitlements and subsidies increase income to those living in poverty but the IRS doesn’t count those freebies as "earned" income.
Ever wonder why?
Doing so allows liberals to politicize the issue…they won't ever mention that fact, just the "earned"income part. The poor in America are much better off than the liberals want anyone to know.
Ever wonder why?
The problem is that The Donald's plan doesn't change anything substantively. It's a good plan that appears only to re-arrange the deck chairs on the Titanic. For example, the IRS, income tax lawyers and tax preparation firms, the real estate industry, charitable organizations, and civil service union bosses will continue business as usual.
Concerning those charitable contributions that would continue to be tax deductible. Since when is a tax deduction really a charitable contribution? Where's the sacrifice? Notice the exponential growth in "non-profits" during the past 6 years? HINT: The taxpayers are picking up the tab.
Returning to The Donald's proposal, with all of those new tax $$$s flowing into the U.S. Treasury, that presents a real problem.
How? Congress' spending binge will continue unabated as its members raise the nation's debt ceiling periodically to "pay" for "adjustments" to all of the old as well as all of the new programs, entitlements, subsidies, and Christmas trees its members can dream up.
The goal? Members of Congress will continue to get rich and keep the sheeple happy. In truth, they're only kicking the can down the street to enslave this generation's children and grandchildren to those holding the nation's debt...like China.
Ever wonder how so many member of Congress millionaires through their years and decades of "public service"?
- Congress will deposit $20k annually into the savings account of every American citizen.
- A 15%-20% flat tax will be paid by all wage earners—individuals and corporations. The first $20k is tax exempt.
- No free lunches, deductions, or loopholes.
- The annual U.S. budget Congress formulates will include a 10% payment on the U.S. debt until it is paid off in full.
- Congress is free to develop any budget it wants, with all of the programs, entitlements, subsidies, and Christmas trees that members desire. However, for every $$$ the budget (including #4) exceeds the $$$s generated by #2, that amount will be apportioned among individuals and corporations earning $500k+ in the previous tax year at the rate of 50% on every dollar exceeding $500k.
- Encourages wealth creation rather than wealth transfer.
- Every wage earner has skin in the game.
- Considering the entire proposal, the rate is progressive.
- The guaranteed $20k income encourages people to work because they won’t lose their benefits by working.
- Cuts the number of government employees required to administer social programs.
- High income wage earners can apply their $20k annual income to their tax bill.
- #5 doesn’t cap government spending.
- No balanced budget amendment to the US Constitution is required.
- Business will explode with a corporate tax rate of 15%-20%.
- Filing taxes is simplified.
- Both corporations and wealthy wage earners will be motivated to pressure the members of Congress to curb their appetite for spending…after all, they're the ones who are going to be gouged…and big time.
- The power of the IRS is reined in.
- Tax attorneys and accountants will have to find paying jobs for an additional 9-months of the year.
- Numerous civil servants will have to find paying jobs in the private sector.
Meanwhile, the average Joe and Josephine Taxpayer wage earner pays his/her taxes and, for the purposes of budgeting, can plan ahead for things like…er…..umm….paying off a house, car, vacation house, boat, and/or investing for retirement.
Ever wonder why?
Let the discussion begin…