Income Tax Reform

The progressive income tax does not fairly tax the citizens of the United States.

Low Income – Not expected to pay much, if any, income tax. The government services received by low income citizens are then effectively free. This causes a distorted perception of the value of money.

High Income – Expected to pay a higher percentage of income because of progressive tax rates, but due to the influence that comes from having money, loop holes and exemptions are placed in the tax laws to reduce the tax burden. High income earners have the available money and incentive to hire tax accountants and tax lawyers who are specifically trained to find all of the loop holes and exemptions possible which reduces or eliminates the effect of progressive income tax rates.

Middle Class- Includes the significant majority of citizens with incomes that place them in about the center of tax rates. Many of the deductions are not applicable or are too complicated to make them financially significant enough to justify hiring a tax accountant. Because of this the middle class pay a higher overall tax rate than the low income or high income people.

The income tax system should be eliminated and replaced with an individual consumption tax with a discount rate applied to those that are retired at the time of conversion to the consumption tax to minimize double taxation of money that earned prior to conversion to the consumption tax.