An American Tax Plan

In response to numerous inquiries I have decided to offer my response to the current proposed tax legislation, which is projected to add over $1 Trillion to our national debt (currently over $20 Trillion).

The current proposed tax legislation is just a new version of the 1986 Tax Act, which was a complete and unmitigated disaster. When President Reagan took office our national debt for our first 200 years as a nation was less than $1 Trillion ($994B), when he left office it was nearly $3 Trillion ($2.9 Tr).

In the words of former Vice-President Dick Cheney, “Reagan proved deficits don’t matter.” This misguided tax strategy has cost our country dearly- out of our $3 Trillion annual budget for America nearly $1 Trillion is for interest on the national debt which is the biggest budget item.

The root cause of this tax miscalculation is that Congress continues to debt finance our country’s needs. Politicians in Washington cannot agree on any key issues regarding spending vs. taxes. It is best to remove them from the equation and adopt an American Tax Plan.

What follows is my recommendations which I hope will start a national dialogue and lead to a true bi-partisan tax bill.

An American Tax Plan

1. Congress enacts a Balanced Budget Amendment to the US Constitution and requires all budgets be balanced so there will only be surpluses (no more deficits). There may be a force majeure exception for wars and disasters.

2. No income tax on first $20,000 in income (per taxpayer). Gives all Americans tax breaks, which will especially help low and middle class income taxpayers and those affected by higher health insurance premiums.

3. Payroll taxes paid are an income tax deduction, which will help all working Americans.

4. The corporate tax is eliminated (if S-Corporations, Limited Liability Companies, Partnerships which are all taxed as pass-thru entities do not pay tax, why should C-Corporations?). This one provision alone will ignite national investment, economic activity and make the US the most competitive business environment in the world.

5. The federal estate and gift tax exemption is increased from $5.49m to $25m per person to encourage inter-generational wealth transfers immediately and have the funds circulate and boost our economy.

6. The bulk of tax revenues come from individuals (not corporations or estates). These federal tax revenues may be more than replaced by imposing a 10% national excise tax on addictive consumer products which are sold by stateless, multi-national corporations who reap huge profits while sickening consumers and sticking the American with the bill. How much does it cost America in health care, family trauma, first responders for junk food (which kills more people than tobacco), tobacco (which kills more than 50,000 Americans yearly), gambling, prostitution (yes escort services are prostitution) and pornography. What social or national purpose do these products serve?

7. Legalize and tax Cannabis and earmark these funds to attack the national crisis for pills, heroin, meth and others.

8. Follow President Reagan’s excellent strategy to allocate tax credits to achieve national objectives. Separate tax credits for monies spent for inventions (research and development), infrastructure repairs (roads, bridges, ports, airports, buildings); additionally areas include: export tax credits for products made in the US (at least 50% US made), worker job retraining and revive the Work Progress Administration (from President Roosevelt) to include: sports and art.

I welcome all comments and would appreciate if you would tell your elected officials that you agree and want them to get to work and stop engaging in foolish, ineffective policies, which are bankrupting our great country.

“Ask not what your country can do for you, ask what you can do for your country.” ~John F. Kennedy

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