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Posted 13 years ago on Oct. 18, 2011, 10:56 p.m. EST by JustinKleinrichert (21) from Rochester, IN
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I'll try and keep this simple and on point.

We devise a progressive tax bracket that ranges from 10% - 70%. 10% being the lowest and 70% being the highest. Now a lot of you are thinking 70%!!! YOU ARE OUT OF YOUR MIND!!! Bare with me here it'll all make sense in a moment. Now we apply the tax cuts. You must pay 10% and the rest of the percentage that you owe you can spend, but you must spend it in ways that'll benefit our economy. Such as purchasing U.S. goods over foreign or starting a business that employs. We'll put a time limit on how long you have to spend it. So let's say a year for the individual. Any of that money that you don't spend you must pay in taxes that following year along with your minimum of 10%.

Example:

Let's say you make $1,000,000 which puts you at the 70% range. So you owe $700,000 in taxes and the remaining $300,000 you can do whatever you want with. However, you only have to pay $100,000 in taxes and you get to spend the remaining $600,000. Remember that you have to spend it on U.S. goods and/or start a business that employs. Now let's say you only spend $500,000 in that designated time period of one year. This means that you will have to pay the remaining balance of $100,000 plus your 10% that following year.

This can work with big business and corporations as well as long as we regulate and ensure that they are keeping the money within the U.S. We can also put in some type of regulation in place penalizing them for any money lost due to high-risk "gambling" or anything of that sort. We must also close any loopholes immediately once they are found. We can also expand the designated time limit in which the money must be spent, like 3 years or so instead of 1.

In theory what this will do is encourage and increase spending on American goods which in turn will raise the demand for American goods. Where there is demand there will have to be supply therefore bringing/creating jobs in the U.S. An increase in jobs will bring an increase in tax revenue and an increase in tax revenue brings a better well being to our society. Once we reclaim our government that is. I also believe that this will minimize government by removing the hold they have on our capital.

Now I know that this proposal is not perfect but I do feel that it is something that can be negotiated between those who are in favor of the tax cuts and those who are not.

Please comment on any changes that you would like to make or I you see anything wrong with it. I will add the changes if consensual and re-post. Also feel free to re-post all you want.

21 Comments

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[-] 3 points by Mcc (542) 13 years ago

This proposal would only concentrate more wealth. Another favor for millionaires. But we did have a top marginal tax rate of 70 percent 32 years ago. It only applied to dollars over $800,000 if memory serves. High marginal tax rates were necessary to reverse the horrible concentration of wealth that caused the Great Depression. Otherwise, there never would have been a recovery.

We have been mislead by Reagan, Bush Sr, Clinton, Bush Jr, Obama, and nearly every other public figure. Economic growth, job creation, and actual prosperity are not necessarily a package deal. In fact, the first two are horribly misunderstood. Economic growth/loss (GDP) is little more than a measure of wealth changing hands. A transfer of currency from one party to another. The rate at which it is traded. This was up until mid ’07′ however, has never been a measure of actual prosperity. Neither has job creation. The phrase itself has been thrown around so often, and in such a generic political manner, that it has come to mean nothing. Of course, we need to have certain things done for the benefit of society as a whole. We need farmers, builders, manufacturers, transporters, teachers, cops, firefighters, soldiers, mechanics, sanitation workers, doctors, managers, and visionaries. Their work is vital. I’ll even go out on a limb and say that we need politicians, attorneys, bankers, investors, and entertainers. In order to keep them productive, we must provide reasonable incentives. We need to compensate each by a fair measure for their actual contributions to society. We need to provide a reasonable scale of income opportunity for every independent adult, every provider, and share responsibility for those who have a legitimate need for aid. In order to achieve and sustain this, we must also address the cost of living and the distribution of wealth. Here, we have failed miserably. The majority have already lost their home equity, their financial security, and their relative buying power. The middle class have actually lost much of their ability to make ends meet, re-pay loans, pay taxes, and support their own economy. The lower class have gone nearly bankrupt. In all, its a multi-trillion dollar loss taken over about 30 years. Millions are under the impression that we need to create more jobs simply to provide more opportunity. as if that would solve the problem. It won’t. Not by a longshot. Jobs don’t necessarily create wealth. In fact, they almost never do. For the mostpart, they only transfer wealth from one party to another. A gain here. A loss there. Appreciation in one community. Depreciation in another. In order to create net wealth, you must harvest a new resource or make more efficient use of one. Either way you must have a reliable and ethical system in place to distribute that newly created wealth in order to benefit society as a whole and prevent a lagging downside. The ‘free market’ just doesn’t cut it. Its a farce. Many of the jobs created are nothing but filler. The promises empty. Sure, unemployment reached an all-time low under Bush. GDP reached an all-time high. But those are both shallow and misleading indicators. In order to gauge actual prosperity, you must consider the economy in human terms. As of ’08′ the average American was working more hours than the previous generation with far less equity to show for it. Consumer debt, forclosure, and bankruptcy were also at all-time highs. As of ’08′, every major American city was riddled with depressed communities, neglected neighborhoods, failing infrastructures, lost revenue, and gang activity. All of this has coincided with massive economic growth and job creation. Meanwhile, the rich have been getting richer and richer and richer even after taxes. Our nation’s wealth has been concentrated. Again, this represents a multi-trillion dollar loss taken by the majority. Its an absolute deal breaker. Bottom line: With or without economic growth or job creation, you must have a system in place to prevent too much wealth from being concentrated at the top. Unfortunately, we don’t. Our economy has become nothing but a giant game of Monopoly. The richest one percent already own nearly 1/2 of all United States wealth. More than double their share before Reagan took office. Still, they want more. They absolutely will not stop. Now, our society as a whole is in serious jeapordy. Greed kills.