Well, another week - and another evasion attempt by Mitt and company to not elucidate the tax loopholes he's willing to cut. I know, color me surprised. Anyways, I got to think that maybe, just maybe, he's looking for some input. So I thought I'd detail a tax plan. But, rest assured if you make your money outside of the United States - you won't like it.
But guess what? I don't give a shit. I'm an American, and our tax credits should go to AMERICAN companies, not multinational conglomerates.
But , let's start on the personal side:
First of all - all income is reportable. That doesn't necessarily mean it'll all be taxable, but 100% of income will be reportable. If that income is invested in overseas companies , it's taxed at 2x the normal rate. If it's in a multinational company that imports into the United States, it's taxed at 1.5x times the normal rate. If that company is completely based in the United states, it's taxed at the normal rate. I don't give a shit if it costs you more - maybe you should either invest in the US , or you can get the fuck out. Your call.
If more than 50% of your income comes in the form of capital gains - then you get the 15% current tax rate. And no other loopholes. No home ownership credits, no medical supply tax credits, nothing. Your capital gains income is taxed at 15%, and the remainder is taxed at the regular rate. Think it of it this way wealthy people - I'm saving you money on tax preparation.
If you make more than 1 million dollars and less than 50% of that is capital gains, you get to pick 5 deductions or credits. Your capital gains are still taxed at the 15% , and your normal income is taxed at the normal rate after you use your credits or deductions. Again, simple.
If you make less than 1 million dollars in total income (not taxable income) then your taxes are largely unchanged.
On the business side - whether or not you classify as a small business is determined by the combined net worth of the owners of that company or the board of directors. Be it a corporation or not, More than 3 million dollars in combined net worth of the board - it's not a small business. These small business tax credits are designed for people who are trying to provide a service or product to their communities - not because Paris Hilton or Donald Trump need another tax break. That's not what they're for. For actual small businesses that do 100% of their manufacturing or job creation in the United States, their current taxes will be cut by 1/3.
Now, every year, Congress chooses a manufacturing industry. Be it clean coal, or nuclear, or rail, or freeways, or whatever Congress decides that's needed most - the companies that are in that industry will enjoy a 1 year tax holiday and split the 4B that we currently subsidize the oil industry. This will be a deficit neutral expense, as it's already marked to be spent, but instead of going to an established agency, it will in turn go towards incentivizing US innovation and manufacturing. This is provided that 100% of that company is based and 100% of their products are built in the United States. After an industry has been selected, they can't be re-selected for a period of at least 5 years. This will allow the US to achieve a diverse manufacturing base which will equal more jobs in the US.
If 100% of your business is in the US - you will enjoy extensive tax cuts, 1.5 times as much as what your competitors are saving in their reduced labor costs for abandoning the US workers.
If your business is headquartered offshore, or you import more to the US than you export - be prepared to pay for the priviledge of using our customer base. Your products and services will be tarriffed at the equivalent of what it costs your competitors who haven't abandoned the United States. Same thing if you're a wholly foreign company importing to the US - your product will be tarriffed to what it would cost a US company to build that product.
Now those of you complaining that 'but student, so many of our products are built in China, we can't afford US made products.' I feel your pain, but the only reason you buy cheap China crap is because - it's cheap. They tax our products at 10 times what we tax theirs. If the prices were equal - you'd buy American - at least I hope you would. More people buy American, more products are built in America, more jobs FOR America. Again, I don't care if it's unfair for those who don't invest in America. Tough Shit.
So there you go Mitt, some ideas to get you started on your tax plan.
If you need some help understanding concepts like patriotism, building an American manufacturing base, and penalizing those who would dare bet against the US - give me a call. I'll be happy to explain them to you. However, as a US Marine (you do know who we are, right ?) , even though my tax rate was more than double yours last year - I still have to put in a full day's work to earn that money. So leave a message.