The Tax system has been in place since the 16th Amendment in 1913. There were other types of income tax during the Civil War which was a flat tax which was very lucrative and repaid the debt of the civil war with a lot of politicians trying to get a graduated income tax for the federal government revenant which came to for fruition in 1913. Since 1913 the tax code has been changed and modified with loopholes and exemptions and the deductions and credits all have been added. Now the federal tax code is thousands of pages and has become so complicated that people spend close to $500 for professional to do their taxes. The federal government also has to have a huge staff in order to work on all the taxes to make sure people are doing them right that has enormous amount of money that is spent on collecting money. As you can see it has become way too complex and a very inefficient system of revenue for the federal government. From Jimmy Carter two Ronald Reagan and George Bush to Bill Clinton to George W bush to Barack Obama and now to Donald Trump we have gone back and forth with tax hikes and tax cuts from Democrats to Republican and Back Again. They changed the percentage they change the brackets and manipulate the numbers to make it sound good to hear but nothing really ever changes. The tax system needs to be updated to a new entirely different system that is very efficient and easy to comprehend, I'm proposing a federal sales tax of 7.5% with a total sales tax capped at 15%. Then there will be a business income tax of 7.5% capped at 15% as well. Then finally there will be a luxury tax of 5% that will be capped at 10%. With this tax system it is easy to comprehend so no thinking about it and is completely automated where there is no government spending in order to receive the tax collected. The first part of this is the sales tax, this is very similar to the fair tax plan but with the fair tax it takes 30% for new products that is way too much tax on the everyday people that are in the low 10% tax bracket they are now charged 30%. Yes there is a pre-bate but the everyday American will feel cheated and I would agree, this system is capped at 15% I will start with 7.5 and adjust from there and yes the pre-bate is still going to happen and everyone will get the poverty line sales tax back into their new account. The sales tax is on everything! For every dollar spent seven and a half cents will be added and sent to the government. This goes for everything from internet sales from amazon and Ebay as well as DraftKings and all internet gambling for every dollar the government get seven and a half cents and on stock market for every dollar spent 7.5 cents goes to the government. This is done by businesses adding to the sales and services and send the sales tax to the government at the end of each business day. The second part is for the business income tax. The net income a business makes they will be have a 7.5% tax on your net profit and can be taxed at a Max 15%. This can be done with their monthly quarterly or annual earnings statement that are already made and they can pay the federal government the 7.5 percent to the federal government at that time. The final part of this tax plan is the luxury tax this is the most complicated but it's still simple compared to the graduated income tax, luxury tax is an additional tax for any item that is two times the average price of that type of item. For example the average car in America is $36,000 that is more than $72,000 you will pay a luxury tax on that car of 5% with a max of 10%. This may be done at the county level, because the price of gods are different in certain states.
The first point of this system is being simple is that citizens do not need to do anything with this system no saving or collecting or filing nothing. The idea of freedom and liberty is the ability to do what you want with the current tax system you are required to file your income taxes and if you itemize you have to save all of your seats and bills and everything you spent from the entire year. That is not Freedom or Liberty another Simplicity is the ability to collect the tax, the businesses that sell the product or service and the computer will put the tax in a separate column. Then at the end of the day they are sent to the bank account for the taxes. The best part about this system is the government does not need to know anything about you it is a non intrusive and very simple tax. With the business income tax we will take a flat tax of Maximum 15% on your net income so if you made a net profit of $10k this month you will pay $750 at 7.5%. This is a much simpler than today's corporate tax and all the other taxes that go with this system today. Also all the corporations do not need to keep track of employee income or any of the other paperwork that its employees have to have for the federal income taxes. All the companies need to do is a monthly quarterly or annual performance sheet which they do already and there you have it you save a lot of money in accounting cost moving towards its new system. With this business tax the owners are going to say they are taxed two times which is true however you will be taxed far less than what you are taxed now with the current tax system. With the luxury tax you are getting taxed two times on a product that you buy which is true but as others would say you can afford it.