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 credit. Tax credits pertaining to instance those for race horses benefit the few at the expense of the many.

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

Reduce the youngster deduction to be able to max of three younger children. The country is full, encouraging large families is get.

Keep the deduction of home mortgage interest. Home ownership 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 education costs and interest on student loans. It pays to for the government to encourage education.

Allow 100% deduction of medical costs and insurance coverage. In business one deducts the associated with producing everything. The cost at work is mainly the repair of ones very well being.

Increase the tax rate to 1950-60s confiscatory levels, but allow liberal deductions for “investments in America”. Prior into the 1980s the income tax code was investment oriented. Today it is consumption focused. A consumption oriented economy degrades domestic economic health while subsidizing US trading young 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 All investment in stocks and bonds should be deductable only taxed when money is withdrawn among the investment markets. The stock and bond markets have no equivalent for the real estate’s 1031 exchange. The 1031 property exemption adds stability to your real estate market allowing accumulated equity to use for further investment.

(Notes)

GDP and Taxes. Taxes can fundamentally be levied as the percentage of GDP. Quicker GDP grows the more government’s capability to tax. Within the stagnate economy and the exporting of jobs coupled with the massive increase in the red there does not way the states will survive economically with massive development of tax gains. The only way you can to increase taxes would be to encourage an enormous increase in GDP.

Encouraging Domestic Investment. Within 1950-60s Efile Income Tax India tax rates approached 90% to your advantage income earners. The tax code literally forced high income earners to “Invest in America”. Such policies of deductions for pre paid interest, funding limited partnerships and other investments against earned income had the dual 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 via a tunnel the freed income off the upper income earner has left the country for investments in China and the EU in the expense with the US financial system. Consumption tax polices beginning planet 1980s produced a massive increase inside of the demand for brand name items. Unfortunately those high luxury goods were frequently manufactured off shore. Today capital is fleeing to China and India blighting the manufacturing sector from the US and reducing the tax base at a time when debt and a maturing population requires greater tax revenues.

The changes above significantly simplify personal income duty. Except for accounting for investment profits which are taxed in a very capital gains rate which reduces annually based upon the length associated with your capital is invested quantity of forms can be reduced any couple of pages.