Tax Study

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 
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