Eliminate income tax on anything under $100,000

Economy
1

To offset the effects of tariffs move the first tax bracket (10%) to income over $100,000 for individuals and $200,000 for couples. This will allow the tariffs to have their intended effects but free up cash for people to afford the higher prices. This will also simplify tax filing for the vast majority of taxpayers since they would no longer be required to file, saving time and money. The government will collect a similar amount of revenue but make the lives of the majority of people simpler. It also gives people the ability to voluntarily choose how much they pay in tax based on what they choose to consume. This rewards saving money and will put people on a more stable financial footing.

3 Likes
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I would vote for eliminating income taxes altogether, but this is also reasonable.

I assume that this also means the first x amount is income tax exempt as wel and if you make $120 you’re only taxed on the $20k overage.

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That’s a start, but let’s just get rid of income taxes for the W2 wage earner. Tax capital gains, tax corporate dividends. Give the working men and women a break regardless of income level.

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I don’t think we should tax capital gains anymore than we do now, if at all. All people should participate in investing, including the working man. It’s the only way anyone can live without working until they die.

The benefit of simply raising the tax bracket is that we don’t need to tear the entire existing system out. It’ll be easier to get implemented.

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That’s right. Currently the first $12,000 of income in exempt from taxes (the standard deduction). If you make less than that then you don’t have to file a return or pay any taxes. Raise that to $100,000 and that would make 65% of Americans exempt from Federal income tax. The people that make more will be paying far less in income tax than they do now and nearly everyone would be in a good enough position to pay higher prices for goods. Everyone will be pitching in, paying their fair share, and the more fortunate among us will be able to pitch in a little bit more.