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Cap total compensation (all "perks" included) at mid seven figures. Allow one
year-end bonus split among all employees and shareholders. Invade every
boardroom with well-paid and expert compensation auditors.
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Three: The Fair Tax. Adopt the plan that has been negligently ignored by
congress for decades. It replaces the entire IRC with a Federal Sales Tax, and
without Social Security, a number between 10% and 12% would probably work.
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It's easy to understand, eliminates the lobbyist gifts and bonuses that current
IRC loopholes produce, taxes the underground economy, and gives back (with
necessity only debit cards) to lowest tier wage earners. All businesses would
be audited to assure collection compliance, and a cap would be set on the total
take for all levels of government.
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There would be no sales tax on food, healthcare, and educational expenses.
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Four: The Flat Tax. Institute a 10% Federal Income Tax, with no exclusions,
exceptions, deductions, credits etc. All income, regardless of source, is taxed
at the same level, and the total from all levels of government capped at 15%.
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A combined Flat Tax and Fair Tax environment would increase jobs and spending,
while reducing tax fraud and credit abuse. Any number of approaches could be
used to assist the lowest wage earners, and Social Security benefit payments
would be tax-free forever.
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Compensation creativity such as stock options, country club dues, and first
class airfare, need to be dealt with to protect shareholders and employees from
their leaders - new jobs for those displaced professionals.
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Total annual employment compensation above $5,000,000 would be subject to a flat
tax of 55%. This would apply only to employees of publicly traded companies and
elected public officials. Entrepreneurs, celebrities, lottery winners, etc,
must not be penalized for their creativity and good fortune.
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It is likely that both new taxes will produce returnable surpluses quickly.
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Five: Death & Gift Taxes. Give them death; they deserve it.
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Six: Property Taxes. Reduce them each year for all persons receiving Social
Security benefits. Retirees would pay no property taxes after ten years.
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Seven: Tolls, Licenses, and Fees. Eliminate all collections and charges for
government provided public transportation (roads, bridges, tunnels) and
recreational facilities (parks, museums).
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Eight: Value Added Tax (VAT). Several of the suggestions above should reduce the
prices of American exports. But if our trading partners assess a VAT on those
exports, let's negotiate elimination or return the favor.
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Healthcare reform is next, with tons of ideas not being considered by Congress.
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Steve Selengut is the author of The Brainwashing of the
American Investor: The Book that Wall Street Does Not Want YOU to Read",
and "A Millionaire's Secret Investment Strategy". One of his
websites: Kiawah Golf
Investment Seminars.
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