🚀 go-pugleaf

John Hensley <johnhe@worldnet.att.net> wrote:

:I'm in total agreement that the current exemptions are a joke and I would much 
:rather see a flat federal income tax of 15% on all income over a minimal cost of 
:living requirement with no exemptions for anything. 

You don't necessarily need a flat tax to simplify tax calculations.

How about a scaled income tax with no exemptions, plus a flat tax on
capital gains? This would allow relatively easy calculation, but still
give a break to low-income households.

The calculation would go something like this:
You made $A in regular income and $B in capital gains
Look up $A in a table, get C%
The tax on capital gains is D%
You pay A x C + B x D

No joint filing. No exemptions.

For the average person with one job and little or no capital gains
income, the amount to withhold per paycheck would be easy to calculate:

(A x C) / (# of pay periods)

If someone has two jobs or gets a large raise part way through the year,
things get a bit more complicated, but are still manageable.

SD


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|                 Steve DeGroof (degroof@nando.net)                 |
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