Continued
I agree with Warren Buffet — the wealthy don’t pay enough in taxes. I know from my situation that there are too many gimmicks that allow for someone like me to pay far less than the average working individual. I have two charitable foundations, and I think any income they generate should be taxed in the 5-10% area. Plus we should have to give away 10% of our equity.
What follows are a few of my economic prescriptions for reforming tax code that could get us some of the way back toward a more equitable and healthy society.
I feel strongly that you have to phase in changes and give advanced notice on them, but tax code changes must be instituted. Here are a few of my ideas:
- 1031 Exchange This allows wealthy people to get out of paying capital gains tax on properties if they “exchange” their real estate for something similar. Some say this code creates jobs, but it seems to me that this only helps the rich get richer.
- My fix: give six months’ notice, then completely stop this practice.
- Long-term Capital Gains It’s too easy for the wealthy to benefit from this tax law. The really rich make most of their money through investments, and because they can afford to hold on for a year, they enjoy a much lower tax rate than they should.
- My fix: Long-term capital gains taxes should start at two years. While they’re at it… they might want to start offering corporations a capital gains tax of 25% to 30%. This has the potential to generate needed funds.
- Depreciation and Accelerated Depreciation The depreciation tax shield is another way to minimize taxable income. Because assets lose value over time, they can be written off as expenses (depreciation). If you want, you can legally say that these assets lose more value in the early years, allowing you to pay even less up front (accelerated depreciation).
- My fix: The depreciation rate is way too generous. It should be scaled back. Accelerated depreciation should be stopped completely.
- GRATS and the Gift Tax These only help very wealthy people keep their money in the family. By shuffling money around, the very wealthy use the GRAT shelter to legally bypass paying estate and gift taxes. The gift tax itself is too light. Right now, a married couple can literally gift $28,000 a year to as many people as they want… without any taxes being paid at all.
- My fix: Phase down GRATS and then eliminate. Untaxed yearly gifts per couple should be limited to $100,000 total. It would be nice to phase down the current 5 million lifetime limit to 4 million. Grantor trusts should just stop.
- Social Security I’ve been fighting the Social Security mess for a while now. I wrote to them in 2011 that I didn’t need it, but they still won’t stop sending me money. In this country, most people have the impression that the money they pay into social security belongs to them. In other countries, the general feeling is that it is the public’s duty to take care of the needy. The American attitude towards poverty needs to change, but obviously that is very hard to do.
Right now, Social Security tax is only paid up to an annual income of $118,500. Every dollar earned above that amount is not taxed. Why should people making over that amount be given a break?
- My fix: They should start at $150,000 at a reduced rate, and continue forever.
And there should be a means test. People with income over $500,000 a year shouldn’t be taking money from Social Security or Medicare. For those who want to, there should be an option to divert the money to charity. Give them four options to choose from — veterans, poverty, etc. Too much of this money is going to people who don’t want or need it.
I know these suggestions are not going to quickly balance the budget, but they’re a start.
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Barry Segal
Founder
Barry started Focus Autism in 2009 to advocate for vulnerable children who were more susceptible to developing chronic illnesses after being exposed to environmental toxins and other immunological triggers. In 2015, Focus for Health expanded its mission to include addressing how social determinants of health increase vulnerability to disease and ending child sex abuse.
the news people just don’t ask the right questions and doctors don’t know a thing about it but answer like they know.. the problem is not the vaccine but the preservative which is
mercury.. which is one of the most toxic metals that can be introduced to the human body
the amount of mercury along with aluminum multiplies the toxicity 10,000 times.. the rate of autism and other mental disorders has increase 40,000 percent from fifty years ago..as mercury and aluminum have become the standard ..out of millions of possible preservatives they are using the most toxic..why..big pharma is feeding on the suffering of humanity crime .for money’s sake and doctors are defending it ..knowing fully well of the toxic effects of these vaccines..they are also using mercury in flu vaccines which produce mental problems for the elderly ..what other monstrous acts are they not up to???