Posted by
Michael Heimlich on Friday, July 24, 2009 12:28:46 AM
1. Have a single tax rate of 10% - capital gains, income, payroll (FICA), corporate and dividend.
2. This tax rate would apply to income above $10,000.
3. The federal government cuts expenses by 10% - any combination of salary / job / program cuts.
This would create economic growth, would repatriate $US from overseas, simplify the tax code and would get people employed - in the private sector, where they can be more effective.
Self employed people would get a larger benefit, since they pay the employer and employee portions of the FICA tax.
People would have more money to pay down their mortgages and companies would have more cash on hand so they could hire more people and wouldn't have to draw on credit lines as much. Banks would be more willing to lend to companies that were more solvent. End of credit crisis.