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Federal Gov't Reform

Individual Federal Income Tax

Concept: Use National Sales Tax for the replacement of Individual Federal Income Taxes 

Current Tax Revenue: $2.2 Trillion per year (36% of Federal Tax Revenue) (link)

Solution: Set the National Sales Tax to 5.0%

  • Advantages/Notes:
    • Tax to be levied on all new purchases (items where tax has not been previously levied)
    • No more filing Individual income taxes
    • Easier for Employers to pay individuals (not having to calculate Income Tax)
    • IRS not needed for Tax Compliance, – https://www.irs.gov/statistics/irs-budget-and-workforce

https://www.irs.gov/statistics/soi-tax-stats-irs-data-book

Payroll Taxes

Concept: End all Payroll Taxes

Current Tax Revenue: $1.6 Trillion per year (36% of Federal Tax Revenue) (link)

New Tax Revenue: $0 to Federal Government

Solution: End all Payroll Taxes

  • Advantages/Notes:
    • Social Security to be considered part of debt and paid with 5% of National Sales Tax
    • Federal Government to Refund all prior contributions by individuals & businesses and deposited into the General Retirement Account. Priority would be for those individuals already in retirement or near retirement.
    • Individuals already in retirement will get a statement of total funds contributed as compared to funds withdrawn. Contributions end when balance reaches zero. (calculated as: Total amount contributed to Social Security less payments received)

Excise Taxes

Concept: Eliminate all Estate and Gift Taxes

Current Tax Revenue: $229 Billion per year (4% of Federal Revenue) *source

Solution: Eliminate all Excise Taxes

  • Advantages/Notes:
    • The States are closer to assess the needs of their state as it relates to these types of Excise Taxes (Gas, Alcohol, Tobacco, Airports)

Corporate Taxes

Concept: Simplify Corporate Taxes

Current Tax Revenue: $420 Billion per year

Solution: Set the Corporate Tax to 5.0% of Net Sales (Gross Sales less Returns and allowances)

  • Advantages/Notes:
    • Changing the corporate tax to be based on Net Revenue significantly reduces the overhead and complexity of corporate tax.

These plans eliminate the entire current tax code and replaces it with a very simple tax system. It also takes out, for the most part, the ability for fraud and misconduct.