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Mar 23

Taxation’s to Encourage Investment

Primary Principle – Taxes should be used primarily to fund government operations and not for economic incentives. Too often tax credits have unintended consequences and fail to stimulate the economy.

Personal Online Income Tax Filing in India Tax

Eliminate AMT and all tax loans. Tax credits with regard to example those for race horses benefit the few in the expense of the many.

Eliminate deductions of charitable contributions. Must you want one tax payer subsidize another’s favorite charity?

Reduce a kid deduction the max of three children. The country is full, encouraging large families is overlook.

Keep the deduction of home mortgage interest. Owning a home strengthens and adds resilience to the economy. If your mortgage deduction is eliminated, as the President’s council suggests, the uk will see another round of foreclosures and interrupt the recovery of durable industry.

Allow deductions for education costs and interest on so to speak .. It is advantageous for brand new to encourage education.

Allow 100% deduction of medical costs and insurance policy. In business one deducts the price producing materials. The cost at work is in part the repair of ones health.

Increase the tax rate to 1950-60s confiscatory levels, but allow liberal deductions for “investments in America”. Prior for the 1980s the income tax code was investment oriented. Today it is consumption concentrated. A consumption oriented economy degrades domestic economic health while subsidizing US trading spouse. The stagnating economy and the ballooning trade deficit are symptoms of consumption tax policies.

Eliminate 401K and IRA programs. All investment in stocks and bonds in order to be deductable and only taxed when money is withdrawn using the investment advertises. The stock and bond markets have no equivalent to the real estate’s 1031 exchange. The 1031 marketplace exemption adds stability to your real estate market allowing accumulated equity to be taken for further investment.

(Notes)

GDP and Taxes. Taxes can essentially levied as being a percentage of GDP. Quicker GDP grows the greater the government’s option to tax. More efficient stagnate economy and the exporting of jobs along with the massive increase with debt there is limited way the usa will survive economically without a massive trend of tax profits. The only way you can to increase taxes is to encourage an enormous increase in GDP.

Encouraging Domestic Investment. The actual 1950-60s tax rates approached 90% for top level income earners. The tax code literally forced financial security earners to “Invest in America”. Such policies of deductions for pre paid interest, funding limited partnerships and other investments against earned income had the twin impact of growing GDP while providing jobs for the growing middle class. As jobs were came up with tax revenue from the center class far offset the deductions by high income earners.

Today almost all of the freed income around the upper income earner has left the country for investments in China and the EU in the expense among the US current economic crisis. Consumption tax polices beginning regarding 1980s produced a massive increase regarding demand for brand name items. Unfortunately those high luxury goods were more often than not manufactured off shore. Today capital is fleeing to China and India blighting the manufacturing sector of the US and reducing the tax base at a time when debt and an ageing population requires greater tax revenues.

The changes above significantly simplify personal income tax bill. Except for accounting for investment profits which are taxed in a very capital gains rate which reduces annually based on the length of energy capital is invested the amount of forms can be reduced along with couple of pages.