john
New Member
Texas-12
Posts: 39
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Post by john on Jun 19, 2012 9:38:00 GMT -5
Our old bracket system of taxation seems antiquated. It was created in the days long before the hand held calculator.
A flat tax is often put forward because of its simplicity. The suggested one is always a simple percent. Such a solution is regressive
Since we have a progressive tax system, why not replace the arbitrary bracket system with a simple exponential equation such that for each small increase in adjusted gross income one would pay a very small increase in percentage of taxation? A simple entry of adjusted gross income into a hand calculator would immedialely display tax owed.
X = kYn
Such a system would those who make huge amounts of money and for whom "brackets" do not exist. The greater the (monetary) stake in our nation the greater the percent of taxation.
Everyone would be treated alike - for every small increase in income their would be a very small increase in the rate of taxation.
What do you think?
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mhuttman
Full Member
People First
Posts: 124
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Post by mhuttman on Jun 21, 2012 8:34:54 GMT -5
That's an idea. Can you throw out a couple of examples with the proposed formula? What do your variables represent?
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Post by cgregor on Jun 21, 2012 12:06:08 GMT -5
Excellent idea, John! I devised a system that is based on the percentage of income relative to the top 1%: If a household made 1% of the average income of the top 1%, its tax rate was 1% of the rate imposed on the top households.
The formula ensured that income rise was graduated-- those who earned more always had more after-tax income-- up to a tax rate of 75%. Since our society puts a premium on one's position on the income dunghill, it allowed the households at the very top to remain at the very top, even if the max tax rate was 75%.
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Post by jameswilson on Aug 30, 2012 1:02:16 GMT -5
"For every small increase in income their would be a very small increase in the rate of taxation", this the reason why a tax reform proposal is need to be plan ahead. Some key senators are promising their part for this current tax system to be renewed soon. A brand new poll by Pew Research found that most Americans think the wealthy pay too little in taxes. Most also see the gap widening between the prosperous and the poor. Paying taxes will cost a huge payday loan for the rich already though.
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