I'm not sure my one-page plan is better than any other – but if the members of Congress can’t or won’t exercise self-discipline in the conduct of their offices, then some minimum of discipline needs to be imposed.
 
A Modest Tax Proposal

Taxes are needed to fund the operation of the government and to meet our fiscal obligations. Congress has demonstrated that it lacks the discipline to spend not more than the revenue available – and has further demonstrated that, left to itself, it is too often unwilling and/or unable to engage in constructive problem-solving and to consider the consequences of this lapse. To remedy this, I propose the following:

The Basic Tax Structure
  • The base tax rate for all persons and entities will be 20% of gross income;
  • Persons and entities with gross incomes less than 150% of the poverty level will be exempt from all taxes;
  • There will be no other exemptions or deductions of any kind; and
  • The total compensation for Senators and Representatives will be fixed at 10 times the poverty level.

Level 1 Tax Revenue Augmentation

When the Basic Tax Structure is inadequate to meet obligations the Congress may increase tax revenues for a period of one year only as follows:

  • The tax rate for all persons and entities will be increased to 25% of gross income;
  • Persons and entities with gross incomes less than 150% of the poverty level will remain exempt from all taxes;
  • There will be no other exemptions or deductions of any kind; and
  • All subsidies will be automatically cancelled and may not be re-enacted until return to the Basic Tax Structure.

Level 2 Tax Revenue Augmentation

When the Level 1 Tax Revenue Augmentation is inadequate to meet obligations the Congress may further increase tax revenues for a period of one year only as follows:

  • The tax rate for all persons and entities with gross incomes greater than 100 times the poverty level will be increased to 30%;
  • A tax of 1% of total assets of all persons and entities holding assets valued greater than 250 times the poverty level will be collected;
  • Persons and entities with gross incomes less than 150% of the poverty level will remain exempt;
  • There will be no other exemptions of deductions of any kind;
  • At Level 2 and above, the United States will issue no instruments of indebtedness;
  • All federal salaries and wages will be automatically reduced by 10%;
  • All federal pension funds will be transferred to the Social Security Trust Fund and federal pension programs permanently ended; and
  • In addition to cancelling subsidies, all foreign aid will be cancelled and may not be re-instituted until taxes are returned to at least the Level 1 Revenue Augmentation level.

Additional Tax Revenue Augmentation

When the Level 2 Tax Revenue Augmentation is inadequate to meet obligations the Congress may propose further increasing the Level 2 Tax Revenue Augmentation rates for a period of one year only and submit that proposal to American voters in a national referendum. Enactment will require a minimum of 2/3 of the votes cast in favor of the proposal.

Copyright © 2010 Morris R. Dovey

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