A Citizen's 2% Solution

How to Repeal Investment Income Taxes, Avoid a Value-Added Tax, and Still Balance the Budget

A Confluence of Benefits

Advocates for tax reform typically seize upon one of three alternative objectives which they treat as though they are, of necessity, mutually exclusive. The proposal outlined in detail upon the pages of this site is designed to offer simultaneous stimulus toward all three of those equally worthy objectives.

1. ECONOMIC GROWTH

  • Repealing corporate income taxes will stimulate business hiring and make U.S. corporations more competitive
  • Flattening and reducing earned income taxes will stimulate growth in middle class disposable income and thus consumer demand
  • Removing the tax bias toward unrealized gains will stimulate more fluid and productive reallocations of private capital

2. EQUAL TREATMENT

  • Proposal normalizes effective tax rates between earned income and investment returns
  • Avoids regressive VAT or consumption taxes
  • Eliminates “double taxation” of corporate income and dividends/capital gains
  • Eliminates preferential treatment of the already privileged
  • Replaces the “pretence of progressivity” as depicted in our income tax rate schedules with equal treatment toward holders of wealth that will allocate a greater portion of the tax burden based upon a citizen’s real ability to pay.
  • Repealing the corporate income tax and reforming existing tax expenditures, thereby eliminating the morass of special treatment policies and loopholes now written into our tax code, will take investors’ and business’ hands out of our government’s pockets

3. FISCAL RESPONSIBILITY

  • Increased tax revenues are a required step toward a balanced budget
  • A balanced budget will convert the hidden taxes of inflation and debt imposed on future generations to a current tax burden, which can thus be more readily and responsively monitored, managed and matched to expenditures
  • A balanced budget will stabilize the currency

The long-term cost of inflation exceeds the cost of a 2% asset tax which could control deficit spending and stabilize the currency. Any benefit from inflation on the Public Debt is overwhelmed by the cost imposed upon Private Debt Holders, whose aggregate holdings are four times the amount of our national public debt.

By improving the perceived equity of tax revenue policies we can minimize the divisive lobbying for government programs funded with Other People’s Money – and hopefully thereby also impose greater discipline upon disbursement programs and priorities.

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