First, we need a resolution for complete and total tax reform. We are taxed ceaselessly for everything we do. Most states we live in tax our income, tax our purchases, tax our fuel, tax our tobacco, tax our alcohol, tax our taxes on fuel, and charge fees to use the services they provide such as Drivers licenses, State ID's, Court fees, filing fees, trade name registrations, sales tax registrations, and the list goes on.
As if that were not enough, after all of the taxation pressed upon us by the states in which we live, our federal government turns around and taxes our alcohol, our tobacco, our fuel, they tax the tax on our fuel, charge passport fees, more court fees, filing fees, trademark fees, copyright fees,and then they collect a tax on our income.
So ok how do we resolve the issue of excessive taxation and fees? We downsize our military all of the time, weakening our defense infrastructure and inhibiting our abilities to protect ourselves when are forces are spread thin through multiple campaigns spread around the globe. Sound familiar.
Military and emergency preparedness are another issue that will be discussed at a later date, but it is important that we reorganize and strenghten our forces. In the same we have been down-sizing our military strength, we need to down-size and streamline our state and federal governments.
We need to eliminate those departments that can more appropriately be handled by other departments. Large corporations do it all the time to improve customer relations and increase their profitability. It only makes sense that we should run this great country of ours the way we would run our own businesses.
We need to eliminate the IRS and its outrageous rules, forms, and publications. The tax laws of this country are so complex and ever changing that even our Judges, prosecutors, and lawyers become confused and misled in their decisions.
So if we eliminate the IRS how do we deal with the issue of taxation? Let's simplify this. Forget everything you already know about taxation and collection. Erase the slate clean and lets start fresh with a simple concept and see if we can't build on it.
ORGANIZATION & STRUCTURE
Each state shall be responsible for collecting a uniform national sales tax, income tax, alcohol-tobacco-fuel tax, and insurance tax. Upon collection of these taxes by state treasurey offices, monies will then be distributed, in a manner consistent with the law, as follows:
- 50% of all taxes would got to the state;
- 30% of all taxes would go to the fed reserve;
- 15% of all taxes would go to the county of the taxpayer; and
- 5% of all taxes would got the taxpayers city of residence.
INCOME TAXES
There will be no tax placed upon retirement, social services, or benefits derived income. Income tax shall be imposed in the following manner:
- Income up to $12,500.00 Tax-free;
- Income up to $35,000.00 taxed at 15%;
- Income up to $75,000.00 taxed at 17.5%;
- Income up to $150,000.00 taxed at 20%;
- Income up to $300,000.00 taxed at 22.5%; and
- Income in excess of $300,000.00 taxed at 25%.
SALES TAX
Sales tax shall be imposed uniformly across the board at several different levels and at varying degrees. These taxes shall be imposed as follows and without discrimination:
- A 2.5% Sales Tax shall be imposed upon homes and motor vehicles;
- A 4.5% Sales Tax shall be imposed upon all food and beverage sales (excluding alcohol);
- A 6.5% Sales Tax shall be imposed upon all sales and services not otherwise taxed; and
- A 7.9% Sales Tax shall apply on all transfered and donated assets except thos made to charitable organizations as defined by law.
INSURANCE TAX
An insurance tax of 2.9% shall be imposed upon all income in excess of $6,250.00. This Tax shall be used to cover the added expense of uninsured motorists and to provide medical, dental, and eye insurances to those individuals and families within our society who can not otherwise afford these insurances.
ALCOHOL-TOBACCO-FUEL TAXES
Alcohol - Tobacco - Fuel Taxes shall apply toward all such purchases first at the manufacturer level, then wholesale level and again at the retail level. Such taxes applied at the manufacturer and wholesale levels must not permit an increase in the resale price and must be absorbed entirely by the manufacturer and/or wholesaler.
A 4.9% Alcohol tax shall apply at all levels in addition to the standard 6.5% sales tax. This additional tax shall be collected and applied to a special regulatory fund to help defray the costs associated with the consumption of alcohol and public education.
A 12.5% Tobacco tax shall apply at all levels in addition to the standard 6.5% sales tax. This additional tax shall be collected and applied to a special regulatory fund to help defray the costs associated with tobacco use, tobacco toxins, and raising public awareness.
A 2.45% Fuel tax and a 2.45% Highway useage tax shall apply to all fuel, oil, fluid, and additive sales at all levels in addition to the standard 6.5% sales tax. This additional tax shall be collected and applied to a special regulatory fund to improve upon roads and highways, fund maintenance operations, and improve upon our nations fuel and oil reserves.
(This concludes Part One of this Three Part series continuing tommorrow and concluding on Christmas Day.)
