The Egalitarian Tax Plan
The heart of this plan would replace the very regressive social security tax with a very progressive tax paid only by the wealthiest people.
Social Security would no longer be a pretend, forced savings account, used to finance government overspending, but a true and equal benefit to all older and disabled Americans.
Further, since the US Government owes the Social Security Trust Fund $2.8 trillion,
once this new method of financing has been made, that debt could be forgiven in its entirety!
The hypothesis of this switch is based on the fact that people of great wealth have gained their advantage due to a civilization and infrastructure that was not created by them, but rather by all our forebears. So they rightfully have the responsibility to return a decent portion of their wealth to today's retired and disabled citizens.
Under this plan every citizen entitled to social security payments would get an equal payment of $2400/mo.
Because the World Wide Wealth Tax would raise so much money, we could also lower income taxes for everyone! This, in-turn, helps more people to become wealthy themselves!
1) World Wide Wealth Tax
This yearly tax is based on a personís total net worth, regardless of where that wealth is held.
2) Income Tax
- No tax on the first $5 million of any estate
- 2.5% on the portion of estate values between $5M and $50M
- 5% on the portion of estate values between $50M and $500M
- 10% on the portion of estate values between $500M and $1 billion
- 20% on the portion of estate values above $1B
This tax is based on a personís yearly income, regardless of the source; wages, dividends, inheritance, capital gains, winnings and all other sources will all be treated the same (i.e. income).
3) Transaction Tax
- No tax on the first $40,000 of income. (This is the only deduction allowed)
- 10% tax on all income above $40,000
- 20% tax on all income in excess of $250,000
- 33% tax on all income in excess of $1,000,000
This tax applies to real estate and other equity sales, which will also help stabilize markets.
- 2% on all real estate transactions
- 1% on all stock, bond and options purchases
updated Nov 19, 2017