Tax Reform

Personal Income Tax Rates | Corporate & Business Income Tax Rates

Personal Income Tax Rates

The current personal income tax code is unconstitutional. The original intent to income tax was to force the robber barons (people that use unscrupulous methods to get rich) to pay taxes, not provide a mechanism for Washington to reach into most American’s pockets.

The tax code hurts law-abiding citizens, the middle, and regular rich classes. The middle class has been shrinking for decades and has seen zero wage growth. A healthy rich class is important, and there are varying levels of rich, which has become a source of misinformation. The top 20% of Americans are the rich class, which divides further into the top 1%, top 0.1% and top 400. There is a huge wealth gap between regular rich and the top 400. The wealthiest people have access to tax avoidance systems where some pay far lower rates. Some billionaires pay zero income tax.

Evan advocates closing all income tax loopholes and avoidance systems. Standard and itemized deductions will remain.

Evan’s new tax rate proposal below is consistent with the original intent of the Constitution and provides a balanced budget using IRS data.

New Tax Rates

Taxable Income Bracket Effective Tax Rate Marginal Tax Rate
$0 K to $440 K 10% 10%
$440 K to $1.1 M 16% 20%
$1.1 M to $1.6 M 20% 30%
$1.6 M to $2.2 M 25% 40%
$2.2 M to $5.5 M 40% 50%
$5.5 M to $11.0 M 50% 60%
Over $11.0 M 50% to 70% 70%

This tax system removes all complications. All tax loopholes are closed. 99.9% of Americans just need to take their total income minus deductions and multiply it by 10% to see the amount of tax to pay.

“To contract new debts is not the way to pay old ones.” –George Washington

Closing loopholes in the tax code is most important. Even though 99.9% of Americans get a lower tax rate under this plan, these tax rates balance the federal budget and are competitive on the world stage. Honest Americans should not have to pay higher rates than the robber barons that decide to cheat the tax system. The average income of the top 400 Americans is $350 million dollars per year per person. 267 of the top 400 paid less than 25% income tax. The working class of America is paying tax rates as high as 39.6% because they abide by the law. Republicans need to stop saying the tax code is complicated and their fix is a huge tax break. Democrats need to stop adding taxes that disproportionately hurt the lower and middle class. Republicans lower taxes, Democrats raise taxes, and this is a seesaw of stupidity.

Corporate & Business Income Tax Rates

The current corporate tax system is unfair to new corporations and law-abiding ones. In 2016, 27 multi-billion dollar corporations paid zero tax – ranging from GM to American Airlines. They are either using advanced tax avoidance techniques based on foreign loopholes, or bribing of politicians to enact special laws to lower their tax rate with domestic loopholes. An estimated $2.6 trillion dollars is stored offshore by using these loopholes to cheat America. These companies even get politicians to enact special regulations against small businesses so they do not have to worry about competition in the future also. Small businesses are being discouraged from forming due to oppressive regulations and because they do not have access to tax loopholes used by large corporations.

“We draw the line against misconduct, not against wealth.” –Theodore Roosevelt

Evan advocates for a corporate tax rate of 10% and closing all tax avoidance loopholes that exist (foreign and domestic). To encourage investing in new business, Evan advocates for removing double taxation on dividends. This policy will incentivize corporations to stay in the USA; existing corporations to move back to the USA, and remove the benefit company’s receive from outsourcing American jobs. Lower tax rates on small businesses encourages more businesses to form, which is the biggest creator of new jobs and increased salaries. Healthy competition also leads to improved products and services. Salaries and jobs will also increase since benefits for offshoring to tax cheats will not exist. Ohio has not seen median household income increase in 17 years. It is time that changes.