Up | Corporate Rate Justification | The Numbers

As you review the numbers, please note that the base numbers were difficult for me to gather. They seem straightforward and probably are. However, it seemed that most easily available numbers were far more complex than needed for these calculations. I assume no one expected someone to want to look at the numbers I was after. So I will rely on more knowledgeable economists to derive better numbers but I believe mine are close enough for discussion.  

A different approach to federal tax income tax rates 

Most importantly, I believe we need to take a fundamentally different approach to the calculation of appropriate tax rates. I will show how this approach fundamentally complies with the three criteria listed above. Given that is the case, I would propose that we look at the four taxable categories and assign a percentage of total revenue goal for each category. The tax rate would then be set to attain that goal.

For Example: 

Again using the 1995 goal of $ 775 Billion, these would represent the percentage of total budget to be raised in each taxable category along with the revenue figure.  

1. Sales/Consumption Tax:  38% ~ $294.5 Billion
2. 3-5 Tier Personal Flat Income Tax: 25% ~ $ 193.75 Billion
3. Corporate Gross Revenue Income Tax

1. Distributors/Retailers: 18% ~ $ 139.5 Billion
2. Manufactures/Service/Professional: 19% ~ $ 147.25 Billion   

I believe this would result in approximately the following tax rates: 

1. Sales/Consumption Tax:  5%

2. 3-5 Tier Personal Flat Income Tax: 3-5 tier rates 0 – 10%

3. Corporate Gross Revenue Income Tax

3. Distributors/Retailers: 1.5%

d. Manufactures/Service/Professional: 4% 

As an individual, business owner, stock holder or any combination, would you not jump at this tax structure! 

It is simple to understand and most importantly, spreads the burden wide and thin.