Issue Position: Sam's Tax Policy

Issue Position

Issue Position: SAM'S TAX POLICY

Graduated Flat Tax: A Policy Snap Shot

Problem:

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Our current tax system is full of loop-holes that have essentially allowed our tradition of a progressive tax to be reversed to the point where a family making $50,000 a year can some times pay more in taxes than a family making ten or twenty times as much.
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The bureaucracy behind the Internal Revenue Service is bloated; slow to respond to taxpayers' needs and unnecessarily complex.
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In the current economic climate, middle and lower income families face an increased burden in buying gas, groceries, and in financing education.

Solution:

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We must simplify the tax code and reduce the tax burden on lower- and middle-income families. In order to do so, the Federal Government should institute a Â"Graduated Flat Tax,Â" a tax structure with broad, simple income brackets and relatively few deductions. This structure reduces the overall complexity of our current tax system. Therefore, the Federal Government should abolish the income tax code as it stands now and replace it with the following:
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The first $50,000 of a persons income shall not have any tax levied on it;
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Income between $50,001 and $150,000 shall be taxed at a rate of 25 percent;
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Income above $150,000 shall be taxed at a rate of 35 percent;
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All persons shall file separately regardless of marital status;
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All capital gains are considered part of ones income, and thus one would add their yearly salary to any capital gains in order to determine their income for the purpose of levying Federal income tax.
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e.g. A single person making $160,000 at their job and 20,000 in capital gains (a total income of $180,000) would pay the following:
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For the income earned between $50,001 and $150,000 the person would pay 24,999.75
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For the income earned between $150,001 and 180,000 the person would pay 10,499.65
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For a total tax burden of 35,499.40

Savings based on transition to "Graduated Flat Tax Plan."

Advantages:

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Most taxpayers save money: The median household income of most Americans is $50,233. This policy would signal a savings of over $6,700/yr. for the average American household.
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Simplifies filing: For many, the red tape and confusing terminology of current IRS tax forms creates a barrier between the taxpayer and an accurate tax return. The above plan not only dramatically decreases the amount of time needed to file, but also decreases the time needed to process the return. This cuts down on both printing costs and the need for a large IRS bureaucracy.
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Budgetary parity: Under this system the Federal Government would retain near parity of revenue as compared to the current tax structure.
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Upper-income loopholes closed: Based on the system above, every American who is taxed pays their fair share of the economic burden without loopholes or accounting tricks

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