The No-Tax Plan
How about a plan where everything you earn is tax free - period. No income taxes, no sales taxes, no business taxes, no fees or tariffs. As long as you earned the money by using your muscles or your brain you get to keep 100 percent, and your can do or buy anything you want with it without taxes. Get your entire paycheck, spend or save without any taxes, fees, tariffs, or anything that would increase the price of good or services. Absolutely no business taxes as long as all your employees work in America.
That's not the half of it. There will be so much money coming into the treasury that every American can have 100 percent free health care, free prescription drugs, free surgeries, free dental and free optical, and even free plastic surgery! You can have free education, free college, free classes, free certifications. There will be enough money in the first year to pay off the national debt, fund the military at current levels, fix all the roads and bridges, and help every poor person to get off welfare.
So what's the catch? Money you didn't earn or work for is taxed at 50 percent - no exceptions. Why? Because it's welfare and that is un-American. Money that you get for free is taxed. This includes inheritance, gifts, lottery winnings, gambling winnings, interest income, income from stocks, bonds, etc. Companies that outsource labor will have to pay a large tax. (because their profit wasn't worked for or earned by Americans) Privately held corporations must convert to publicly held corporations or be liquidated when the owner dies. It's a very simple concept. Retirement funds and 401K plans are tax free because you earned them and the yearly contributions are limited.
Where does all the money come from? Currently just the top few percent of the population owns or controls 70 percent of the wealth. Notice I said wealth and not income. Income is a fanciful term dreamed up by tax lawyers and tax accountants that has virtually no basis in reality. A billionaire can, and sometimes does, show zero income on his tax return. (If you own the company you can reward yourself in many other ways than giving yourself a high salary). Wealth, on the other hand, is net worth. All the things of value that you own like property, houses, boats, stocks, bonds, investments, etc. These are things that can not be easily removed from America or hidden like income can. They can be accounted for and seized if necessary. There is so much wealth in America that taxing wealth could fix all of Americas debt problems in one tax year. While the FairTax billionaires whine about how people hide money outside the country, with the No-Tax Plan that all goes away because real estate can't be moved, stocks and bonds are registered, and banks won't lend people money without collateral.
This would eliminate all tax-free shelters, trusts, foundations, and would provide incentives to work hard and be productive. Business would have no taxes and not need to worry about deductions or liabilities. As long as they provide a product or service using American labor they will never pay a red cent. No more sin taxes, luxury taxes, property taxes, cigarette taxes, or any other taxes on money you worked for and earned. Foreigners would have to move themselves and their wealth to America to benefit.
The FairTax is more like Communism. Everyone is supposed to be equal but, in reality, there is a ruling class consisting of wealthy old money heirs who contribute nothing to society. The No-Tax plan is more like what our founding fathers intended - people who work hard get to keep and spend all they work for tax free.
Our current tax code is a lot like an oligarchy. Privately held companies are passed to heirs of royal blood like a monarchy. It's almost as if the United States has many little kingdoms within it and these sons and daughters of self made people are royalty. Most people can respect an entrepreneur, a guy that risks all to start a business, and becomes successful. But nobody respects the boss's son taking over a company - someone who didn't work for the job, didn't sacrifice for the job, or earn the job by deeds instead of having a monopoly on royal blood. When money gets passed on like this the entire capitalist work ethic suffers - innovation, incentive to work hard, earn a living, take risks, and start businesses all suffers. Companies run by heirs are more likely to get involved in the political processes than keep their mind on innovation and productivity. They run for office to change laws in their favor, rather than coming up with new and better ways to do business. They try to kill competition rather than put more people to work. They outsource rather than evolve. They litigate rather than invent. That's why the No-Tax plan is a tax on unearned income and ill-gotten wealth.