Taxation’s 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 Online Income Tax Return Filing India Tax

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

Eliminate deductions of charitable contributions. Must you want one tax payer subsidize another’s favorite charity?

Reduce the child deduction to a max of three of their own kids. The country is full, encouraging large families is pass.

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

Allow deductions for educational costs and interest on so to speak .. It pays to for brand new to encourage education.

Allow 100% deduction of medical costs and health insurance. In business one deducts the price producing solutions. The cost of training is mainly the maintenance of ones health.

Increase the tax rate to 1950-60s confiscatory levels, but allow liberal deductions for “investments in America”. Prior on the 1980s revenue tax code was investment oriented. Today it is consumption oriented. 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 All investment in stocks and bonds ought to deductable only taxed when money is withdrawn using the investment markets. The stock and bond markets have no equivalent to the real estate’s 1031 exchange. The 1031 property exemption adds stability to your real estate market allowing accumulated equity to be utilized for further investment.

(Notes)

GDP and Taxes. Taxes can fundamentally be levied as a percentage of GDP. The faster GDP grows the more government’s option to tax. More efficient stagnate economy and the exporting of jobs along with the massive increase in the red there isn’t really way the usa will survive economically with no massive development of tax profits. The only possible way to increase taxes is to encourage a tremendous increase in GDP.

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

Today plenty of the freed income from the upper income earner leaves the country for investments in China and the EU at the expense of this US method. Consumption tax polices beginning in the 1980s produced a massive increase inside of the 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 aging population requires greater tax revenues.

The changes above significantly simplify personal income tax. Except for accounting for investment profits which are taxed on the capital gains rate which reduces annually based around the length of capital is invested amount of forms can be reduced together with a couple of pages.