Sunday, November 20, 2011

A reasonable solution to the tax rate issue

Politically I am a radical moderate who believes the only sustainable solution to any impasse is compromise. You get something, we get something, you give up something, we do too. Right now our system is seriously broken and yet our elected leaders seem willing to let the system collapse rather than to give any leeway to the opposition.
I have a different idea. I call it the Zackary Richards Plan and overall it’s beneficial to both Republicans and Democrats.
On a recent news show Warren Buffet pointed out that he (billionaire) was paying 17% in taxes while his secretary (middle-class) was paying 28%. Some said that was very unfair while others claimed that people like Buffet, who create jobs, should be given tax breaks so they can create more jobs. Both arguments have some validity but what’s missing is verification. We have had the Bush tax cuts for ten years now and there are fewer jobs than ever. So apparently somebody is pocketing the money without doing what the tax cuts were designed to do, create jobs.
So here’s what we do to fix that
Bump up the ‘job creators’ like Buffet to the middle class rate (28%) on January 1 while at the same time, create a tax rate scale that lowers the tax rate on those in upper management who actually create full time jobs and hire AMERICAN workers. For example say my company has 100 full time employees and I hire 5 more after January 1st, then my taxes and those of my management team would decrease (by how much I would leave to those in tax accounting) if those 5 are still employed by December 31. The more jobs we create the lower our tax rate would be until finally capping at the original 17% .
On the other side of the coin, those in upper management who downsize AMERICAN workers and cut jobs would find their taxes increasing by the same percentage rate until it caps out at whatever the highest tax rate was  (I believe it was 36-38% but again I leave that to those in tax accounting)
This, my friends, is verification. In addition it encourages companies to hire AMERICAN workers who in turn will pay taxes which will make up for the lost revenue brought about by upper management’s lower tax rate. It will also increase revenue from the added taxes placed on those in upper management who blunder and stumble their way to lay-offs and plant closings.
So, in the long run, the real ‘job creators’ will have their lower tax rate. We will have lower unemployment. It will revitalize the middle class whose buying habits fuel this economy and address the concerns of both the tea party and the OWS
No doubt there will be those who disagree with this plan and that’s fine with me, however, if my plan makes sense to you and think others should know about it, please e-mail, SHARE or Tweet this to friends, family and associates and maybe something will get done.