Principles:
- Simplification
- “Rich” must be redefined
- Double taxation must be eliminated
- Incentivizing home ownership and retirement savings for the lower-to-middle class should remain
- The truly “rich” can afford to pay more
- Charitable deductions should be incentivized
- Corporate tax rate should be 0%, including pass-thru entities
Initial proposal:
- Three brackets: under $1 million, $1-10 million, and over $10 million
- 15%, 30% and 60%, respectively
- Cut corporate tax rate to 0% for all businesses, including passthroughs
- Tax all income, dividends and capital gains at the higher of 30% or marginal tax rate, including for corporations
- Remove all personal income tax deductions
- Make mortgage interest, retirement and health contributions, and charitable deductions “below the line” items available for tax credit (subject to limits for retirement, health and interest)
- Cap mortgage interest to $1 million primary residence
- Limit pre tax health contributions to $10,000
- Limit pre tax retirement contributions to $25,000; $50,000 total
- Eliminate tax free gifts
- Eliminate estate tax and step ups
- Come up with a list of affected industries, and if you’ve worked for 10+ years you are eligible for education assistance for re-training purposes
- Inner city projects
