Maximum Income Tax
At some point, a taxpayer has paid enough. So many pay nothing, it is only fair that at some level of taxation enough is enough.
“A maximum annual income tax is $5,000,000. Any income of any kind earned beyond this level of taxation will be completely tax exempt.“
The unintelligible Internal Revenue Code has within its thousands of pages an explanation of what is called the “Alternative Minimum Tax”. Without getting into too much detail, this is an alternative method of calculating income tax liability for higher earners based on fewer deductions. It was established in the late 1960’s to nab wealthy creative taxpayers who arranged their affairs with lots of deductions to avoid paying much or any tax. Since this time this new method of calculation is required of all taxpayers to determine if they must pay more tax.
The reasoning was that the wealthy should pay at least some tax after all. This tax snagged them. Now it grabs millions of taxpayers in the middle class who have legitimate business deductions. It has morphed into just another way to take more from the higher producers.
A reasonable person might say that hey, everyone should pay some tax. I would agree completely, everyone should pay at least some tax (including the poor). How much is enough? Is there any point at which an individual has paid enough to his country?
In the absence of a more sensible alternative taxing structure (later) I suggest a maximum income tax of $5 million dollars. If anyone earns enough money to pay $5 million in income tax, that’s enough. I don’t care if he earns another $100 million. How much is one person supposed to contribute to our nation? When is a lot finally enough? Never?
A maximum tax would motivate many very productive people to produce even more. If they knew at some point they would not have to pay any more, the sky would be the limit. Think about this. Isn’t $5,000,000 enough? What would he do with the rest of his money? Maybe he would only selfishly buy more things - but even that would keep more people employed as other businesses he patronized earned more. Maybe he would only uncaringly enlarge his own account at the bank - and then the bank would have more money to lend to others to expand. Maybe he would hire more people, who would likely pay some tax, or he might decide to pay those he already has more, on which they would pay additional tax. Pretty much no mater what he did with the extra money would be better than to throw it all away into that bottomless black hole that is our government.
Next: Congressional Pay Restructuring