Hey, if you can sell a tax plan that gives the biggest cuts to the wealthy and the least to the middle class, then you can sell anything.
The probelm that his people are either too stupid to realize, to just don't care about
Is that Keyansian economics solves many of the problems of capitalism while creating eventual stagflation.
Supply-Side resolves the problem of stagflation but is also causes the problems that Keyansian economics resolved. So, pulling the same trick that Reagan pulled again is not goign to work, it sjust digging a deeper hole. The solution in terms of capitalism is a return to the Keyansian era of the 1950s and 1960s until stagflation sets in again, and then to switch back to Supply-Side again, and then you back and fourth like that.
This isn't going to work though, and I'm willing to bet money on that. In 10 years weren't looing at major problems if this type of policy is followed out for that long.
They wil eventially have to return to high marginal rates or we will be turning into a 3rd world country soon.
Here is my tax plan:
My plan
$0-$30,000 - 10%
$30,000-$60,000 - 15%
$60,000-$100,000 - 20%
$100,000-$170,000 - 25%
$170,000-$300,000 - 30%
$300,000-$500,000 - 35%
$500,000-$1,000,000 - 40%
$1,000,000-$1,500,000 - 45%
$1,500,000-$2,000,000 - 46%
$2,000,000-$2,500,000 - 47%
$2,500,000-$3,000,000 - 48%
$3,000,000-$4,000,000 - 49%
$4,000,000 and over - 50%
Current Plan
$0-$27,050 - 15%
$27,050-$65,550 - 28%
$65,550-$136,750 - 31%
$136,750-$297,350 - 36%
$297,350 and over - 39%
Bush plan
$0-$6,000 - 10%
$6,000-$27,050 - 15%
$65,550-$136,750 - 31%
$136,750 and over - 33%
The way that capital gains would be taxed is that anyone who’s combined earned income and capital gains income is under $300,000 a year would have their capital gains taxed at the rate equal to their earned income and capital gains combined. Anyone who's combined capital gains and earned income is over $300,000 a year would simply have their capital gains taxed as 30%. The current capital gains tax is 28%.
By taxing dividends in the manner that I have proposed low income earners would not be penalized for capital gains income in the way that they are now, making capital investment more attractive to lower income individuals, as well as lower tax rates which would free up more capital for investing, purchasing, and saving.
This type of taxation would promote a healthier economy by placing a more fair tax burden on those receiving extremely high income, opposed to the current plan and Bush's plan that sets a low top margin which effectively create a flat tax for the wealthy. At the same time a plan like I proposed would create a tax cut for everyone making under $500,000 a year.
