My tax plan is simple. Many of you may have heard about it by now, and one Republican candidate actually ran with it as a plan he would push for. He was the only candidate on either side offering something legitimately different than the status quo i.e. "tax cuts" or "raising taxes on the wealthy." It is the Fair Tax. I will do my best to summarize here but you can read up on it in more detail at http://www.fairtax.org/. There are a few changes I would like to make to it, but it's a good starting foundation for now.
Basically speaking, it eliminates the income and payroll taxes and replaces them with a national sales tax. There are states now, like Texas and Florida, that utilize this general philosophy on the state level to collect and manage their general revenue. They don't collect income taxes in addition to property and sales tax. What this means at the national level is that you only pay taxes when you consume. You get to keep 100% of your paycheck!! It also means that people that don't pay income taxes now would pay taxes when they consume in our country. This includes illegal aliens, tourists, anyone paid in cash now that doesn't file income taxes.
This is a solution that is beneficial to everyone as it takes care of social security, Medicare, Medicaid, and other popular welfare programs that everyone doesn't want to see go away, but no one wants them to bankrupt the country either. The Fair Tax solves this problem since it increases the pool of people paying taxes.
There is one other benefit to the Fair Tax so that basics needs are met by all. All families will receive a prebate each month based on the number of people in your house hold for the amount of tax for the basic necessities of the household regardless of income. Anyone who can't afford more than the basic necessities will in essence pay no taxes unless they consume above and beyond your basic needs. Sorry Christmas presents don't count as basic needs, but with more spending power created from not paying taxes on your needs, Christmas presents might not be so difficult to swing each year.
Oh and there's a bonus, it eliminates the need for IRS (not the need to keep collecting on back owed taxes). But April 15 will no longer be the dreaded tax day, it will be just another day. And before you worry about all those government employees out of work, think of all the jobs that are now shipped overseas to countries considered more of a tax haven than the U.S. is now. With no income and payroll taxes, companies will be bring operations back here and/or move operations over here. So there will be plenty of jobs for them to get, as well as for all the other people who are unemployed.
While free market competiton takes care of the price of goods, one other thing I should mention is that only new goods are taxed. If you buy a used home or a used car, no taxes. If you buy used clothes, furniture, or anything else not new, no federal sales tax. You may still be subject to state taxes, but who cares if you understand this concept, you can make decisions based on this knowledge of when and how much you'll be taxed.
Again for more detailed information, check out http://www.fairtax.org/. It's a valuable source of information. There is also a link on there that tells you which of your Senators and Representatives support it or not. http://www.fairtax.org/cgi-bin/scorecard.cgi
Once you make up your mind that it's a good thing for our country, write your Senators and Representatives and let them know your thoughts on it even if they support it, but especially if they don't. The more voices they hear on this subject, the more they are likely to take a closer look at it. This isn't a partisan solution in my opinion, it's a win win solution for everyone, except for purist who are opposed to all taxation. It's better than a flat tax as it taxes consumption. So all those rich people buying cars and mansions and clothes and whatever else they buy will now be taxed on their consumption, not their earnings or capital gains as much of it sits in. You basically get to choose when you want to pay taxes or not based on the consumption decisions you make.