We Are All Living Here

I live in the United States of America. I work and pay my taxes. We are told we are all equal under the law as stated in the Constitution. So, if that is true, why are we all paying different taxes?

The income tax collected by the Internal Revenue Service on our earned wages is supposed to be used for defense of our country, care of the highway system and National Parks as well as paying the salaries of federal employees. Now, each of us is protected by our military, can drive on the highways, visit the National Parks and are represented in the Legislature by our elected officials. We all have the same rights and representation that we are paying for with our taxes. If we are truly equal under the laws of government, why not be equal under the tax we pay?

I feel a flat tax of 10% of your annual earned income would be a good plan. I know you may be thinking that my ideas are either greedy or simplistic or possible just crazy but if you watch the actions of our government, you would see that that would suit perfectly.

Each person over the age of 18 earning an income would have their standard W-2 at the end of the year that would show that 10% of their income was withheld for federal income tax. Then the filing of taxes would be a simple one page form that was the standard name, address and social security number followed by filling in the space showing what you made, what was withheld and then your signature. If you receive a 1099 as a contract person, you would show what you earned, what you owe and include your payment. These lines to fill in would fall under the w-2 lines. There would be a third section for self-employed income that does not fall under either of the previous guidelines.

One simple page for ever taxpayer. Once you begin working, you begin paying taxes. If a minor begins working, any tax collected will be held in an account in their name that can be used at the age of 18 to pay for college or trade school. They will have until their 21st birthday to collect these funds through an application form submitted by the college or trade school they choose to attend. If they do not request the taxes that were withheld prior to their 18th birthday, then they relinquish these funds.

There will be no deductions either standard or otherwise. If you choose to get married, buy a house or have children, that is a choice you made. There is no reward system for those that make certain life choices or punishments for those that follow a different path either through choice or circumstance.

This same equality will be applied to companies and corporations as each will pay 10% of their gross income. If a large corporation has several smaller companies or DBAs, then the parent corporation will pay 10% of the sum total of all of its smaller companies. These will provide proof of this income total and have their books available for audit.

Charitable donations will be noted and can reduce tax owed. 10% of the sum total of what you donate can be applied to your tax form. You will be eligible for a refund for this amount. Charities, both local and national, will submit their records of donors and amounts to the IRS for clarification.

Federal employees including military, judges and elected officials are subject to these same tax rules. If an elected official also owns a corporation, they will file both an individual as well as a business tax form the same as any other citizen.

These tax amounts would also apply to legal immigrants. Once they receive legal documentation of their residency, they will receive a social security number to be used for their income tax.

No tax will be collected from life insurance, inheritance, social security or disability payments.

International income will be subject to the 10% tax as well for both individuals and companies.

Interest on bank accounts, real estate sales or a sale of a company will be subject to 1% of the amount as income. Dividends from stocks or the sale of stocks count as income and are subject to the 10% tax.

Monetary court judgements and settled or forgiven debt amounts will count as income. These amounts will be reported quarterly to the IRS. Payment arrangements can be made to pay at that time or set up a payment plan with the IRS that will be subject to penalties and interest.

This will truly be a step for equality under the law. Money talks in the US, let’s give everyone an equal voice.

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