9-18-36 Tax Plan: Proposal to promote fairness in the tax code and reduce the deficit.
1. Progessive Individual Income Tax Rate Structure:
0 - $25K: exempt
$25K - $100K: 9%
$100K - $250K: 18%
$250K + :36%
- no deductions, exemptions or credits
- no tax on investment income, including interest, dividends and interest
- no estate or gift taxes
- income is taxed on compnesation and services performed within the US
- most people will not have to file a tax return; rest will have a simple e-file
2. National Sales Tax
- Tax levied at 9% on goods and services unless exempt
- exempt: portion of autos under $25K, clothing under $100K, all food except served at establishments; heathcare, education, primary residence
3. Corporate and Business Income Tax
- All businesses and business income required to be filed on a Business Tax Return
- The tax rates are the same as for individuals
- income is taxed on US income only (no foreign tax credit)
