Taxation’s to Encourage Investment

Taxation’s to Encourage Investment

Primary Principle – Taxes should be used primarily to fund government operations and not for economic incentives. Too often tax credits have unintended consequences and fail to stimulate the economy.

Personal Income Tax

Eliminate AMT and all tax snack bars. Tax credits while those for race horses benefit the few in the expense among the many.

Eliminate deductions of charitable contributions. So here is one tax payer subsidize another’s favorite charity?

Reduce a child deduction to be able to max of three small. The country is full, encouraging large families is overlook.

Keep the deduction of home mortgage interest. Proudly owning strengthens and Online GST Registration Maharashtra adds resilience to the economy. If your mortgage deduction is eliminated, as the President’s council suggests, the world will see another round of foreclosures and interrupt the recovery of durable industry.

Allow deductions for education costs and interest on so to speak .. It pays to for federal government to encourage education.

Allow 100% deduction of medical costs and insurance plan. In business one deducts the cost of producing solutions. The cost of labor is partly the repair off ones health.

Increase the tax rate to 1950-60s confiscatory levels, but allow liberal deductions for “investments in America”. Prior on the 1980s salary tax code was investment oriented. Today it is consumption focused. A consumption oriented economy degrades domestic economic health while subsidizing US trading friends. The stagnating economy and the ballooning trade deficit are symptoms of consumption tax policies.

Eliminate 401K and IRA programs. All investment in stocks and bonds in order to be deductable merely taxed when money is withdrawn from the investment markets. The stock and bond markets have no equivalent towards the real estate’s 1031 give eachother. The 1031 marketplace exemption adds stability on the real estate market allowing accumulated equity to be taken for further investment.

(Notes)

GDP and Taxes. Taxes can be levied as the percentage of GDP. The faster GDP grows the greater the government’s capability to tax. More efficient stagnate economy and the exporting of jobs coupled with the massive increase in difficulty there isn’t really way us states will survive economically without a massive take up tax proceeds. The only way possible to increase taxes is to encourage huge increase in GDP.

Encouraging Domestic Investment. Your 1950-60s income tax rates approached 90% for top income earners. The tax code literally forced high income earners to “Invest in America”. Such policies of deductions for pre paid interest, funding limited partnerships and other investments against earned income had the twin impact of growing GDP while providing jobs for the growing middle-class. As jobs were created the tax revenue from the guts class far offset the deductions by high income earners.

Today via a tunnel the freed income contrary to the upper income earner leaves the country for investments in China and the EU in the expense with the US method. Consumption tax polices beginning planet 1980s produced a massive increase regarding demand for brand name items. Unfortunately those high luxury goods were more often than not manufactured off shore. Today capital is fleeing to China and India blighting the manufacturing sector in the US and reducing the tax base at a time when debt and an ageing population requires greater tax revenues.

The changes above significantly simplify personal income tax bill. Except for comprising investment profits which are taxed in a very capital gains rate which reduces annually based upon the length of time capital is invested variety of forms can be reduced together with a couple of pages.