Forum Post: Change tax laws, healthcare, while repairing the economy. Self employ.
Posted 13 years ago on Oct. 25, 2011, 12:35 p.m. EST by jomojo
(562)
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The payroll deduction system has not worked, except for the IRS, congress and corporations.
By changing to the below five point system, there would be thousands more small business start ups, creating more non corporate jobs. Full employment would increase wages and lower each person's taxes, while increasing tax revenues, which would fund social services.
One of the leading causes of new business closures is that the management must manage not only their own but also employees tax and benefits. Default of rules and payment of Income, SS, MC, sales taxes, permits and fees are reasons the IRS, state and local tax enforcements close many. Even without employees, the self-employed are threatened by the present system being a tax and healthcare minefield.
The production of products or services is what the entreprenuer should be spending their work time on. Business accounting would replace tax planning.
The new plan would:
1.Require that full earnings be deposited at a bank.
2.Eliminate sales tax collection by retailers.
3.Have federal, state, and local goverments deduct their tax revenue from earnings when they are deposited.
4.Offer benefits desired by the worker/owner as an optional cafeteria plan. Insurance, retirement plan, education savings, charities, christmas club, etc, with payments deducted and fowarded from earnings.
5.Require that earnings and salaries from business be deposited/taxed the same as a wage earner. (larger deposits, larger tax %). Reinvestment in business would be therefore pretaxed.
This plan greatly enhances the freedom to quit a job, start a business, hire employees, with everyone having equal benefit availability. All employees would have to be lured with better pay and a more desirable job.
What if I deposit my earnings, which are then taxed, and write a check to someone for a gift? If they deposit the money, they will subsequently be taxed. It's a double tax on the money.
Or, I could just keep cash under my mattress and never pay taxes.
Execellent question. I think cash should be eliminated, or at least taxed, and not legal for companies to use. There's too much power in large bills. Your gifts, (and loans), should not be retaxed, except inheritance tax, and that could become moot, if the revenue wasn't in a deficit. The employee's paycheck would be from an employer, they have tax ID numbers. Your and their personal check should be free as a bird. My matress could use some stuffing, but I'll take it over what I'd find in jail.
This 5 step plan sounds like more big government. Someone has to administer this. Who? Presuming you can pass laws to make 1 legal, 2 makes sense if you implement 3, but who sets the tax rates at step 3? Is it a flat tax? 4 again is resonable but are the vendors and products based on a free market society or if I am a member of a union do I get a limited amount of choice? Concerning 5, If I want to purchase # shares in company Z how do I get my profits should Z prosper (i.e.dividends). There is a simpler solution and that is Cain's 9-9-9 plan. I can do my taxes in about 10 minutes and know what my disposable income is. It's fair to everybody. You pay for what you use and business have the incentive to grow and create more jobs.
Unions would probably want their dues deducted, and that's exactly what I meant by cafeteria plan. Could you imagine strike talks not fighting about benefits and pensions. How could they steal the workers funds? I would think that the worker/owner could supply the account numbers of the companies participating. The banks already have the system to find and forward your money, even the IRS, who seems able to come up with the amount you need to have deducted, they could even use The Employer's Instruction Guide.
Congress administers all taxes and %, and laws. The same agencies implement, just a bigger pie, not served on company time. Company Z would pay their dividends out of their profits. I don't approve of flat taxes unless there were flat earnings. Sales tax is flat tax, just another way of taxing, but why does the salesman need to be the tax collector? Couldn't the taxes be debited at the point of purchase? Your taxes in 10 minutes? Then you're happy. I wonder why there's so many books and companies to help with tax. The easiest way to take care of taxes is to be a wage earner. It's prepaid, you get a W2 with copies ready to check, enter on a form and sign, unless you itemize, or own stock, etc., but that's on your time. It should be that way for the self-employed. Every tax plan promises something. I promise full employment, at better wages. The difference is the company isn't the tax collector, and can avoid running afoul of the duties. I think Cain's 999 plan is not that simple, My plan only changes who collects the taxes and adds that needed way of aggregating the purchase power to buy insurance and other benefits that consumers want to be automatically paid each paycheck. I don't advocate paying them, (or not), with taxes, just as long as the basic needs are met. The current system basically doesn't tax company profits fairly. If your assets increase a million you should be taxed, and not be able to avoid it, but that's not my main goal. I greatly appreciate your comments. They may be the only ones. Think I should call Herman?
This 5 step plan sounds like more big government. Someone has to administer this. Who? Presuming you can pass laws to make 1 legal, 2 makes sense if you implement 3, but who sets the tax rates at step 3? Is it a flat tax? 4 again is resonable but are the vendors and products based on a free market society or if I am a member of a union do I get a limited amount of choice? Concerning 5, If I want to purchase # shares in company Z how do I get my profits should Z prosper (i.e.dividends). There is a simpler solution and that is Cain's 9-9-9 plan. I can do my taxes in about 10 minutes and know what my disposable income is. It's fair to everybody. You pay for what you use and business have the incentive to grow and create more jobs.
"The payroll deduction system has not worked, except for the IRS, congress and corporations."
Sounds like it's workin to me?
Ever heard of an IRS auction?
Sounds like totalitarian like Obama requires you to buy health care or pay a fine ...
Even if I don't have a job?
If you don't have a job you are not a productive member of society. You most work and when not working shop to support the economy. Do not question authority the government knows what's best for you.
I've a history of working and being a productive member of society. It's not all That. I'm having a bit of problem with the shopping support. I'm glad that they have my best interest at heart. I'm thinking about moving or at least ordering Christmas from another country. They seem to need me also. I could help put American flags on their products.
I'm having problems with the shopping part also ... Paycheck to paycheck life sux
Thanks. I'm UE check to check. I should have stayed self employed. The inflation has become a problem. I've always had jobs that did not pay enought to get ahead, but it like me got old. Another bitch is never knowing when your employer is going to move, sell, go under, or do like mine did, replace you with cheaper and more willing part time labor. He's got three problems: I did qualify for UE, and he can't hire me back ;) , and he can't keep his new help. He's also too cheap for temp labor services. Never underestimate the underestimated.
Ya at my good job I trained my replacement in India ... Then was laid off ... Did UE ... Finally found a crap job and hating it but just getting by check to check ... Not many jobs out there ...
I thought this up years ago. I think it would work better now that UE and job dissatisfaction is so high. A consultant informed me that a person would be crazy to work for you, you have no insurance or benefits. He was right, and I was the main crazy. I stayed at it for 27 years more. I proved I could do it, but closing it was like a death in the family, for me personally. Starting a business wasn't wise in 1974, and the economy had few sustained good years since. It was much easier being "another dumb employee". I'd appreciate it if you'd help keep this thread alive a bit, and give me your assesment.