[Magdalen] Quick return.

[Jim Guthrie]

One of the problems with the tax system is that many people think they need to 
hire an accountant, both because their arithmetic is bad (or as Barbie would 
whine "Math is Too Hard") and fear of the IRS, added to the complication of the 
form.

But the American version of the Welfare State is done through the tax system, so 
there are a lot of vested interests looking to keep their piece of the pie, not 
to mention the Accountants' lobby.

As I've said before, I think a graduated consumption tax makes much more sense:

1. How much cash did you receive during the year from all sources including 
work, savings and investments?
2. How much did you save in banks and stocks or pay in salaries?
3. Difference = Gross Income.
4. Subtract the the Annualized Minimum Wage (AMW)
6. Taxable Income

What you owe:
If your income is less than 2x AMW, 5% of Taxable Income ,
a. 5% up to 2x AMW
b. 10% 3x-4x AMW
c. 25% 4x-6x AMW
d. 50% 6x -8x Minimum Wage
3. 60% >8x Minimum Wage

So if the Minimum wage is $10, the annual minimum wage is 40x52x10=$20,800 which 
is thus everyone's "Standard Deduction."

And if someone makes a million dollars a year, but invests $997,200 there's no 
tax. If they choose to spend it all, the tax would be 60% of $997,200, or just 
short of $598,800.

No deductions for kids or marital status, no mortgage interest or local tax 
deduction -- nada. Nothing. No filing jointly, either. One page of instructions 
and return on a card or virtual card.

Oh -- and the only way to get a tax cut is to raise the minimum wage. In 
essence, a graduated flat tax <g>.

Cheers,
Jim