FAIR /FLAT TAX COMBINATION
Our Plan for Tax Reform is very simple, we want individuals and businesses to pay a Fair Flat Tax with No Loopholes. This will allow our Nation to offer a broad based Tax Reduction for individuals and small business taxpayers. Plus it will drastically simplify the tax code. Currently, on average Corporations pay only about 5% of their Earnings on Taxes. A leveling out of our Tax System will be in the interest of fairness and will eliminate the massive tax bureaucracy that exists today. Imagine filing your taxes on one sheet of paper or electronic media. The simplicity of this proposal will usher in a new era of less government waste and will provide clarity in a time of ever changing economic stress.
The only possible way is a combination of a smaller sales tax and a smaller flat income tax. The FairTax could be set at 20%, instead of the intended 23%. The Federal Flat Income Tax could be set at a fixed percentage of annual gross income over $100,000, whether that entity is a person, corporation, small business, etc.; any entity whose income is over a hundred-thousand dollars annually must pay at a fixed percent income. This would eliminate the current federal income tax, capital gains, and the corporate tax. If BP pays 5% of their gross ($284 Billion in 2007, Smith Barney), other taxes would not be necessary. Both taxes used together would be very simple for people to figure out, economically beneficial and sufficient to fund the government.