Because of the brouhaha that our President started earlier this week, I've been looking at Sen Rick Scott's Ultra-MAGA plan. It's available here. And, I believe that it could use some tweaking.
One thing I do like is that he wants Americans to have skin in the game. Currently, about half of Americans pay no income tax. The top 5% pay about 45%, and the middle bunch pay the other 55%. I'm in that middle bunch, I've paid income tax my whole life. What I thin is especially egregious is that some Americans get more back in cash payments than they paid in. The combination of the Earned Income Credit and the Child Tax Credit can actually return money to people who don't have a tax liability.
That portion of the plan is politically untenable right ow, but there is o doubt that our tax code needs some huge revision. Oh, and for the record, here is the quote that has everyone in an uproar.
All Americans should pay some income tax to have skin in the game, even if a small amount. Currently over half of Americans pay no income tax.
The plan could use a little tweaking, but I can generally get behind it.
I agree. Everybody should pay something (note, though, that through sales tax they do).
ReplyDeleteI would add two other things:
1. End withholding so that people pay taxes in a lump sum.
2. End negative tax rates, so that nobody gets more back then they made.