| The key to financing National Health Care, solving | | | | increases. |
| Social Security's long term funding problem, and going | | | | The small tax on gross sales also produces a very |
| to college free of charge is to lower taxes. As | | | | small corporate tax liability. In fact, the business tax |
| incredible as this sounds, it's true. This can be | | | | corporations will now be required to pay is so small |
| accomplished by eliminating tax deductions and a | | | | that employer payroll taxes can be expanded to |
| simple restructuring of the tax code. | | | | include National Health Care and still produce an overall |
| Eliminating tax deductions is the key to tax reform. This | | | | tax liability lower than what corporations are currently |
| is because tax deductions are the main cause of tax | | | | required to pay. This overall lower tax liability will be the |
| fraud and the inequities associated with our current tax | | | | basis for corporate acceptance of their expanded |
| system. It is the tax deduction that allows the tax code | | | | payroll obligation. |
| to favor some segments of society over others, | | | | These same principles apply to individual taxes. When |
| decrease the amount of revenue the government | | | | deductions are eliminated, the ability of individuals to |
| needs to properly fund the programs our society | | | | reduce, delay or eliminate the taxes owed comes to |
| deems important, and leads directly to waste, fraud | | | | an end. This means that the scenario that now occurs, |
| and corruption. | | | | where wealthy individuals end up paying less in taxes |
| No serious attempt at tax reform can take place | | | | than poorer individuals, is no longer possible. This |
| without addressing this problem. Therefore, abolishing | | | | translates into increased revenue for the government. |
| the tax deduction is the first and most important | | | | The elimination of personal tax deductions also heralds |
| reform that must take place. When combined with a | | | | the end of personal income taxes. The elimination of |
| simple restructuring of the tax code, these simple | | | | income taxes presents as a tax reduction and this tax |
| reforms create a tax system that treats everyone | | | | reduction allows for the expansion of payroll taxes to |
| equally. And, when everyone is treated equally three | | | | include National Health Care and Public Education. |
| things happen: First, the current codes ability to favor | | | | These new payroll taxes will be readily accepted |
| some segments of society over others is eliminated. | | | | because individuals will still be paying less in overall |
| Second, tax fraud will decrease. And third, government | | | | taxes and yet will receive more in benefits. Most |
| revenue will increase. | | | | people will simply wonder why these reforms had not |
| For example, in order to increase tax revenue from | | | | been implemented earlier. |
| corporations we must first change the tax structure | | | | The elimination of tax deductions and a simple |
| that allows businesses to reduce, delay or eliminate the | | | | restructuring of the tax code needs to be implemented |
| taxes owed. Currently, corporations subtract from their | | | | as soon as possible. This is because government |
| gross sales those deductions found in the tax code | | | | revenue raised under the current system is inadequate. |
| and labels the resulting number the net profit. This | | | | For example, in fiscal 2007 the government collected |
| figure is then used as the basis for determining the | | | | $2.4 trillion dollar, however, it spent $2.8 trillion dollars. |
| taxes owed. The first $50,000.00 of net profit is taxed | | | | This created a deficit of $400 billion dollars and this |
| at 15% and above $50,000.00 of net profit the tax | | | | $400 billion dollars was added to the national debt |
| increases up to 35%. This creates a very strong | | | | (which is rapidly approaching $10 trillion dollars). Contrast |
| incentive to add as many deductions to the tax code | | | | these amounts with the revenue generated by the |
| as possible in order to reduce the net profit so that the | | | | reforms set forth in my proposal. Based on very |
| corresponding tax liability is lowered. | | | | conservative numbers, my tax reform plan will |
| The solution is to replace the tax on net profits with a | | | | increase government revenue from $2.4 trillion dollars |
| small tax on the gross sales. By definition, the tax on | | | | to a staggering $3.31 trillion dollars. This means that |
| gross sales means that there are no deductions. This | | | | rather than running a budget deficit we will be running a |
| reform eliminates the ability of corporations to use the | | | | budget surplus. |
| deductions found in the tax code to reduce, delay or | | | | This budget surplus allows us to fund all current |
| eliminate the taxes owed, eliminates the corruption | | | | programs, create and fully fund National Health Care, |
| associated with the current tax code, and creates the | | | | resolve Social Security's long term funding problem and |
| level playing field that requires all corporations to pay | | | | expand public education to include college, free of |
| their fair share of taxes. And, when all corporations | | | | charge. And, as incredible as all this sounds, it was |
| pay their fair share of taxes, government revenue | | | | accomplished by lowering taxes! |