Posted 8 years ago on Nov. 6, 2011, 3:43 p.m. EST by MortgagedTent
This content is user submitted and not an official statement
The current income tax bracket system is unfair, antiquated, and overly complicated. I propose a simple new formula-based system as follows:
Income Tax = [(Income^1.1)*0.1]-4500
Its so simple is beautiful. To verbalize the math, we raise the salary by the exponent 1.1, take 10% of that, and subtract $4,500 dollars.
Heres what the results look like Income/Current Tax Rate/New Tax Rate $5,000/10%/-57% $15,000/15%/-0.5% $25,000/15%/14.7% $35,000/25%/17.0% $45,000/25%/20.3% $55,000/25%/22.5% $65,000/25%/24.1% $75,000/25%/24.8% $85,000/28%/26.4% $95,000/28%/27.3% $125,000/28%/29.1% $150,000/28%/30.3% $200,000/33%/31.9% $250,000/33%/33.1% $300,000/33%/34.0% $400,000/35%/35.3% $500,000/35%/36.3% $750,000/35%/38.1% $1,000,000/35%/39.4% $1,500,000/35%/41.2% $2,000,000/35%/42.5% $3,000,000/35%/44.3% $5,000,000/35%/46.7% $10,000,000/35%/50.1% $20,000,000/35%/53.7% $50,000,000/35%/58.9%
-As you can see, the largest beneficiaries of this proposal system are the part-time workers struggling to make ends meet at the bottom of the income pyramid.
-Fittingly, the system doesn't betray our 90-99 percenters as there tax rates remain largely stable. The equivalent point occurs just below $250,000 and the real penalties don't kick until the $700,000 income range (which corresponds nicely with the top 1%). The people in this range tend to job creators who have worked hard and skillfully to achieve there salary - so I believe we are keeping with the ideals that made our capitalist incentivism so successful in the first place.
-The extreme rich, particularly those at the bottom end of the 1%, are really 'footing' the bill here, with their tax rates rising to the 50-59% range. I feel this is well justified and doesn't represent a paradyme shift in our economic system - staying true to capitalism, but providing a fairer system of wealth distribution.
-Another beautiful aspect of this system is that it actually produces significantly more net tax revenue for the Federal Government than the old system. Combined with better spending initiatives, it could do much help eliminate the national debt - which is going to kill our country if we don't deal with it now.
-Finally, the system eliminates the peculiar staircase pattern of the current 10/15/25/28/33/35% system, whereby making $34,500 might be much better than making $35,000.
If you have any questions please let me know.