middleagedgamer
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Congress wants to simplify the income tax system? Well, here's an idea on how to do that:
Revoke the personal income tax in its entirety, and, in its place, have the following procedure:
Take all your income that could potentially be taxable (not all income is taxable, no matter how much of it you make, such as welfare, combat pay, etc.), subtract $4,000 for each household member (currently, the deduction is $3,650), then, subtract all money that you can prove you donated to charity (a simple receipt or proof of a cashed check will suffice this), and take 15% of that, and you have your tax liability.
For, the per capita income in the United States is $40,280. Since it's per capita, that means that we can subtract $4,000 from that, giving us $36,280 in taxable income. Assuming that the household gives $1,280 per capita to various charities, that knocks the per capita income down to $35,000. Personal income tax is $5,250.
Multiply that by the 309,000,000 people in the United States legally (the census only counts legal people), and we have yearly revenues of $1.62225 trillion. That seems a bit much, but, remember, this is grouping FICA, Medicare, and federal income tax all into one. When you factor in all that we're paying in all three of those, currently, you start to see the savings.
Doesn't that seem a LOT simpler and more manageable than the current personal income tax system?
Revoke the personal income tax in its entirety, and, in its place, have the following procedure:
Take all your income that could potentially be taxable (not all income is taxable, no matter how much of it you make, such as welfare, combat pay, etc.), subtract $4,000 for each household member (currently, the deduction is $3,650), then, subtract all money that you can prove you donated to charity (a simple receipt or proof of a cashed check will suffice this), and take 15% of that, and you have your tax liability.
For, the per capita income in the United States is $40,280. Since it's per capita, that means that we can subtract $4,000 from that, giving us $36,280 in taxable income. Assuming that the household gives $1,280 per capita to various charities, that knocks the per capita income down to $35,000. Personal income tax is $5,250.
Multiply that by the 309,000,000 people in the United States legally (the census only counts legal people), and we have yearly revenues of $1.62225 trillion. That seems a bit much, but, remember, this is grouping FICA, Medicare, and federal income tax all into one. When you factor in all that we're paying in all three of those, currently, you start to see the savings.
Doesn't that seem a LOT simpler and more manageable than the current personal income tax system?