“The top ten percent of all taxpayers pay ninety percent of the taxes”.
Claims for the top percentage may vary from 5% to 20%, yet one simple principle always applies: Divide 100 pennies into two piles, of 90 and of 10 cents each. These represent the contributions to each tax dollar collected, 90c from the top group and10c from the other.
Now, move one penny from the pile of ten to that of the ninety. Result: 91 and 9. By increasing the taxburden of the top group by only 1%, the second group has received a 10% tax reduction!
The TEN for ONE principle is a zero-sum transaction, the IRS only serves as an honest broker (!), no funds are extracted and kept by the Government. This leads to an immediate reduction in payroll withholdings for wage earners and a reduction of tax payments for small businesses.
TEN for ONE is not a Welfare program, welfare recipients do not pay taxes and thus canno get a reduction of taxes.
TEN for ONE produces an immediate boost for the economy, as low income taxpayers will spend most of the extra cash for their daily needs, in rapid turnover goods. It only needs a simple modification of the tax tables. It can incorporate a progressive taper: crossover from pay to credit at, say, a taxabl income of $ 250,000, and slightly higher rates at the top end.
TEN for ONE – ten percent tax reduction for low incomes and only one percent tax hikes for the affluents – AND – a powerful stimulus for the Economy.
Why should high-income individuals be willing to pay EVEN MORE taxes? Because Compassion, Charity and Help-Thy-Neighbor also are Patriotic Virtues in the spirit of the Founders, especially in times of Crisis.
Because we are all Americans!
Viktor MetAuthor: viktor met from US