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kengr
Feb. 8th, 2015 09:13 pm (UTC)
Sat, 21:49: Idea - Idea: New tax laws that state that income tax shall be a percentage of your income, and that... http://t.co/cXWBMdQKu1

Uh, Fay? That's called "graduated income tax". And it's how the tax laws in the US work now.

Basically, you pay zero tax if your annual income is below some figure.

Above that, the tax rate varies based on how much you make. The top end rate isn't as high as you suggest, but it hits at a lot lower income level.

The income ranges for a given rate are usually referred to as "brackets"

One notable disadvantage is that if your income increases enough to push you into the next "bracket", you can wind up *losing* money. People have been known to turn down raises because of this.

What complicates things are all the deductions, tax credits, etc. And those are where a lot of the nastiness/stupidity come in.

Not that since at least the 1980s the *IRS*(!!!) has been asking Congress to simplify the tax code (and though they can't come right out and say it) to quit using the tax laws as ways to encourage/discourage things.

And let's not get into the ways that Congress has mangled the tax laws to give payoffs to folks. Since even *they* can't get away with writing stuff like "Joe Blow gets $300k off his taxes) they have to do it by writing shit like "left-handed Albanian widget makers get $300k off their taxes".

They figure Joe Blow is the only person it applies to. But they can be wrong. And often these overly complex clauses interact to mess things up even more.

But getting it cleaned up would piss off huge numbers of folks who supply lots of campaign funding. So don't hold your breath.

If we can somehow get Citizens United overturned (it'd take Congress passing new laws, please let it not require a Constitutional amendment, these days those are more dangerous than the problems!), and can find a way to actually get campaign finance reform done, then *maybe* we could fix the tax laws,


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