Opinion of this tax plan

[DC Al Fine]

Get rid of nearly all deductions in the federal income tax bracket and make these the rates

$0- $35,000: 0%
$35,000-$75,000: 8%
$75,000- $250,000: 16%
$250,000- $ 1,000,100: 24%
above $1,000,000 - 32%

For business owners , or board members in a corporation you can offer them up to 50% deduction in their taxes(the deduction majority of the time isnt that big) if they hire more people then they lay off , hire people in the United States,and give your employees good salaries.

On the other hand if you lay off more people then you hire, or outsource more jobs then jobs you bring back from overseas your tax rate can go up by 50%.

Can you provide some more details? There really isn't enough information for me to make a judgment. Here are some questions I have.

1) Are the rates/income by household income, by person, or are they based on the current US system?

2) Are these the corporate tax rates as well?

3) How are dividends, capital gains, and self-employed sole proprietor income?

4) What deductions would you keep?

[DC Al Fine]

Also, Santander's right about the employment incentive. This sort of plan would be nasty in an economic downturn and would probably exacerbate recessions.

e.g. Company X is profitable but has a lot of money tied up in capital. A recession hits, and while they are still making some profit, they have to lay off some people to remain solvent. Except now they have to come up with an extra $10 million in income taxes during a credit crunch, potentially endangering the company.

[DC Al Fine]

Yeah I'm inclined to agree with Santander. The only way your deduction works is if you introduce a huge amount of uncertainty, which is even worse than high tax rates for investments.

[DC Al Fine]

Yeah I'm inclined to agree with Santander. The only way your deduction works is if you introduce a huge amount of uncertainty, which is even worse than high tax rates for investments.

Also, if you want to subsidize wage labour, its far easier to just pay companies $X/hr for every new hire/decent wage hour worked.

[DC Al Fine]

This is beyond horrid, and punishes the non-business orientated and vulnerable people in society.

WHY lol if you make under 75,000 you pay an 8% tax, and business have every incentive to hire you at a good wage

Your plan gives tax cuts to literally everyone.

I don't have an economic model in front of me, but at first glance it looks like it falls into the left wing trap, of ignoring the fact that the rich simply cannot finance the welfare state on their own. The middle must also contribute.

I'm not sure if that was your intention for the plan. Personally, I avoid getting into specific numbers for that reason. Most people don't have the information to create good tax plans, so they're better discussing deduction, loopholes and general principals.

[DC Al Fine]

To add to my previous points...

I'm an accountant and a large part of my job is tax planning for small businesses. This plan would create all sorts of weird results for my clients. Bob the welder hires his wife to do the books and gets a tax break. Then his wife decides to stay home with the kids. He hires a bookkeeping service and gets a big tax hike. etc, etc.