In counter to the FAIRTax, I propose the following alternative.
50% on all income after the first $100,000 per individual.
All income is to be considered income; sales of investments, dividends, benefits, gifts, and so forth.
To counter the double-taxation issue in this regard, businesses should be allowed to consider dividends as expenses, paying prior to determining taxes.
Oh, I know where the objection is going to come from. It’s going to come from the 5% who make enough to be taxed. They’re going to whine and insist it’s not FAIR for them to have to pay for everyone else. To them I’ve a simple response: Willie Sutton was right. They’re where the money is.
What, the rich will just move? No, no I don’t think they will. They won’t because moving won’t solve their problems. It’s their source of income (from US) that is the problem.
Will they hide their income? They already do. However, if there’s little alternative then we’re likely to be more aggressive in finding those evaders and their shelters.
Look, the first $100,000 (per person) will cover everything anyone needs short of MAJOR medical catastrophe. The rest is just points in a game that’ll go into conspicuous consumption or investments.