Property taxes to Encourage Investment

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

Personal Income Tax

Eliminate AMT and all tax credit. Tax credits pertaining to instance those for race horses benefit the few at the expense on the many.

Eliminate deductions of charitable contributions. Why should one tax payer subsidize another’s favorite charity?

Reduce your son or daughter deduction to a max of three younger children. The country is full, encouraging large families is get.

Keep the deduction of home mortgage interest. Owning a home strengthens and adds resilience to the economy. If your mortgage deduction is eliminated, as the President’s council suggests, the will see another round of foreclosures and interrupt the recovery of the construction industry.

Allow deductions for education costs and interest on student loans. It is effective for federal government to encourage education.

Allow 100% deduction of medical costs and insurance coverage. In business one deducts the associated with producing goods. The cost on the job is in part the maintenance of ones health.

Increase the tax rate to 1950-60s confiscatory levels, but allow liberal deductions for “investments in America”. Prior towards 1980s revenue tax code was investment oriented. Today it is consumption driven. A consumption oriented economy degrades domestic economic health while subsidizing US trading spouse. 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 All investment in stocks and bonds always be deductable just taxed when money is withdrawn among the investment markets. The stock and bond markets have no equivalent for the real estate’s 1031 trading. The 1031 real estate exemption adds stability on the real estate market allowing accumulated equity to use for further investment.

(Notes)

GDP and Taxes. Taxes can only be levied as the percentage of GDP. Quicker GDP grows the more government’s capability to tax. Given the stagnate economy and the exporting of jobs coupled with the massive increase in the red there isn’t really way us states will survive economically your massive increase in tax revenues. The only way you can to increase taxes is encourage a tremendous increase in GDP.

Encouraging Domestic Investment. Through the 1950-60s income tax rates approached 90% for top level income earners. The tax code literally forced financial security 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 accelerating 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 Online Income Tax Return Filing India earner has left the country for investments in China and the EU in the expense for the US economy. Consumption tax polices beginning inside the 1980s produced a massive increase regarding demand for brand name items. Unfortunately those high luxury goods were frequently manufactured off shore. Today capital is fleeing to China and India blighting the manufacturing sector of the US and reducing the tax base at a period of time when debt and an ageing population requires greater tax revenues.

The changes above significantly simplify personal income place a burden on. Except for making up investment profits which are taxed on the capital gains rate which reduces annually based with a length of energy capital is invested amount of forms can be reduced along with couple of pages.