Summary of Tax Plan

At this time, more people have read Abraham Baldwin's discussion of taxes than any other of this blog's entries.  Given the changes over the last 200+ years it is likely that Baldwin would recognize the need for taxes other than import and export duties, but it is also likely that the complexity and inherently bureaucratic structure of today's tax system would be appalling to him.  The tax plan below is a summary of what he might have proposed if he was willing to accept the notion of taxes at all. 


INDIVIDUAL INCOME TAXES


1) Income taxes are paid by employers on their employees at a flat rate with no deductions. No individual is required to file an income tax return.
2) Citizen employees, regardless of income level, are returned a single payment monthly including the following:
     a) a sum equal to the flat tax rate applied to the current poverty level, plus
     b) other government payments to individuals such as social security, disability, unemployment, etc., plus
     c) any incentives the Congress deems desirable, for example, a homeowner incentive, a child care incentive, or other.
3) No government payments or incentives are paid to non-citizens whether or not taxes have been collected on their earnings.
4) Unearned income of individuals is not taxed.
5) The flat tax rate may be changed by Congress but changes do not take effect for four years from the date the new rate is established


CORPORATE INCOME TAXES


1) U.S. industries producing tangible products that have a continuing market after first sale pay no income taxes on the portion of the earnings from producing such products
2) Industries, such as service industries, producing other than tangible products (as described above) pay taxes on earnings at a flat rate with no deductions
3) Industries headquartered or based outside the U.S. are taxed at the flat rate regardless of the type of product they produce