Fees to Encourage Investment

Primary Principle – Taxes should be used primarily to fund government operations and not for economic incentives. Too often breaks have unintended consequences and fail to stimulate the economy.

Personal Income Tax

Eliminate AMT and all tax credits. Tax credits while those for race horses benefit the few at the expense belonging to the many.

Eliminate deductions of charitable contributions. Why should one tax payer subsidize another’s favorite charity?

Reduce your son or daughter deduction to a max of three small. The country is full, encouraging large families is overlook.

Keep the deduction of home mortgage interest. Buying strengthens and adds resilience to the economy. In case the mortgage deduction is eliminated, as the President’s council suggests, the uk will see another round of foreclosures and interrupt the recovery of the construction industry.

Allow deductions for educational costs and interest on student loans. It is advantageous for federal government to encourage education.

Allow 100% deduction of medical costs and insurance coverage. In business one deducts the price producing wares. The cost of employment is partly the repair of ones health.

Increase the tax rate to 1950-60s confiscatory levels, but allow liberal deductions for “investments in America”. Prior towards 1980s salary tax code was investment oriented. Today it is consumption driven. A consumption oriented economy degrades domestic economic health while subsidizing US trading partners. The stagnating economy and the ballooning trade deficit are symptoms of consumption tax policies.

Eliminate 401K and IRA programs. All investment in stocks and bonds ought to deductable in support taxed when money is withdrawn among the investment niches. The stock and bond markets have no equivalent on the real estate’s 1031 flow. The 1031 real estate exemption adds stability to your real estate market allowing accumulated equity to be utilized for further investment.

(Notes)

GDP and Taxes. Taxes can only be levied as being a percentage of GDP. Quicker GDP grows the greater the government’s ability to tax. Within the stagnate economy and the exporting of jobs coupled with the massive increase owing money there does not way the us will survive economically with no massive development of tax proceeds. The only way possible to increase taxes is encourage huge increase in GDP.

Encouraging Domestic Investment. Your 1950-60s taxes rates approached 90% to find income earners. The tax code literally forced comfortable living earners to “Invest in America”. Such policies of deductions for pre paid interest, funding limited partnerships and other investments against earned income had the twin impact of skyrocketing GDP while providing jobs for the growing middle class. As jobs were developed the tax revenue from the guts class far offset the deductions by high income earners.

Today lots of the freed income around the upper Income Tax Rates India earner leaves the country for investments in China and the EU in the expense of this US financial system. Consumption tax polices beginning globe 1980s produced a massive increase regarding demand for brand name items. Unfortunately those high luxury goods were excessively manufactured off shore. Today capital is fleeing to China and India blighting the manufacturing sector in the US and reducing the tax base at a time full when debt and a maturing population requires greater tax revenues.

The changes above significantly simplify personal income in taxes. Except for comprising investment profits which are taxed at capital gains rate which reduces annually based on the length of capital is invested the amount of forms can be reduced together with a couple of pages.