Income Tax Bill

[TeePee4Prez]

I, IrishDemocrat, would like to propose the following bill:



Atlasia Income Tax Bill

1.  A progressive tax structure with these income brackets.  Married filing jointly will have double the brackets shown below:

Single taxpayers:
$0-10000 ............  5%
10001-18000 ...... 10%
18001-26000 ...... 15%
26001-35000 ...... 20%
35001-50000 ...... 25%
50001-80000 ...... 30%
80001-150000 .... 35%
150001-500000 .. 40%
500001+ ............. 42%

2.  This bill shall have the following deducations and exemptions:

    a. Standard deduction: $5,000
    b. Personal/Dependent exemption: $4,000
    c. Student Loan interest deduction from AGI
    d.  Home mortgage maximum interest at $100,000

3.  Dividends and capital gains shall be taxed at the individual's marginal rate.

   a.  With regards to dividends, the corporate rax rate  will not include the portion set aside for shareholder retained earnings.  This new tax will essentially be a "retained earnings tax."
   b.  This new reatined earnings tax shall be a flat rate of 15%.  Different companies are different sizes and employ various amounts of people.  Eliminates "double taxation" for corporations.

4. Credits

  a.  College credit :$4,000 per student.  Phased out at income levels from $100000-150000.
  b.  Purchase of hybrid automobiles credit : $5,000



Not complete.  Open to discussion as always.

[TeePee4Prez]

Revised after consideration to recommendations on the floor:

Single taxpayers:
$0-10000 ............  5%
10001-18000 ...... 10%
18001-30000 ...... 15%
30001-40000 ...... 20%
35001-60000 ...... 25%
60001-80000 ...... 28%
80001-120000 .... 31%
120001-150000... 34%
150001-300000 .. 37%
300001-500000... 40%
500001+ ............. 42%



Note well these rates are for SINGLE taxpayers, not married filing jointly.  Revenues need to be increased.  At the same time there are many loopholes that need to be closed and incentives need to be created.

[TeePee4Prez]

Aye.