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NEW - In 2016 the 2-4-8 Tax Blend will become 2-4-8 Tax Choice
The "choice" would allow all taxpayers to choose an income tax rate between 8% and 28% paired with a net wealth tax rate of 2% going down to zero. Wealth taxes paid would reduce Estate and Gift taxes (also set at 28%). This would encourage wealthy individuals to pay some net wealth taxes as a form of inexpensive life insurance.
  Wealth
0%
0.5%
1%
1.5%
2%

Income
28%
23%
18%
13%
8%

Business
C - Corp
4% VAT
8% Income
   


Las Cruces Sun News, June 2, 2012

Their View: America's first principle is equality

by Michael L. Hays

Michael L. Hays (Ph.D., English) is a retired consultant in defense, energy and environment; former high school and college teacher; and continuing civic activist.

... The Republicans may or may not be playing dumb politics, but they are playing out the remorseless logic of their prejudices and principles. ... Republicans wanted to defeat a black man because he is black. They also wanted to thwart the existential threat represented by a president with a black face.

... Republicans give lip service to equality (of opportunity only) but legislate inequality, with opportunity-killing cuts for the many and benefits for the few. They resist equality because it would redistribute economic, political, and social power, to enable a decent life, liberty from want and fear, and a chance at happiness for all. Their code word for this equality is "socialism."


2-4-8 Response: Race, Politics and Taxes

There are few things as liberating as retirement and the ability to reexamine inhabitations based on political correctness, manners and decency as expressed in the stereotypical comments such as:

“Republicans wanted to defeat a black man because he is black. Black, “…was the face of an emerging demographic of these Democratic-leaning groups — those upon whom Republicans are waging ‘war’". … “Whiteness mattered more than wealth [in the Civil War], as it does now” … “Republicans wish to … undo franchise-enlarging amendments and laws giving the vote to blacks, women, and Indians.” … “Republicans use deficits as an excuse to cut government programs for jobs and job training, unemployment benefits, Social Security, Medicare, Medicaid, food stamps, and other programs especially serving women, minorities, seniors, and children and youths.” … “Republicans want women liable to bearing unintended children because they burden or hinder their educational and vocational options.”

I have never been a Republican or a prude but I am offended by the over-the-top language quoted above. Don’t get me wrong. The quotes would be fine for a drunken bar discussion with close friends, who are interested in your “feelings” and passions. Nevertheless, it is always good to reread the article one writes when one sobers up and before it is published.

I am sympathetic to your comments about taxes because I believe the tax code has redistributed both income and wealth to the top for over 20 years. I believe that the economy has not recovered because the working class no longer have sufficient funds to pay for a home and raise children comfortably. The solution lies in real tax reform but Mr. Obama and the rest of the Democrats in Congress cannot agree on an intelligent alternative to the status quo. Mr. Obama’s failure in the tax reform department is not a matter of his race – it is simply his personal failure and that of his advisors. Independents and Republicans open to change cannot trust our economic future, and that of our children, to the “Buffet Rule”.

In the interest of space I will end with a tax reform plan that can be described in one sentence simply to prove that a little effort by the Democrats could produce dynamic reform:

Tax individual and corporate income at a flat 8% rate (with no deductions, credits or loopholes), tax individual net wealth at 2% (excluding $15,000 cash and retirement funds) and impose a 4% Value Added Sales Tax (VAT) on business.

The 2-4-8 Tax Blend has the lowest rates and will produce about $500 billion more than current federal revenue with no need for payroll, estate, and capital gains taxes or deferral of foreign income.

Eugene Patrick Devany, JD, MPA

www.TaxNetWealth.com

 
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Michael L. Hays

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Copyright 1985 to 2015 by Eugene Patrick Devany