The TAE Tax Plan

I heard the Republicans came out with their budget plan, including radical changes to income tax.

The TAE income tax plan:
For the first $100,000 of adjusted gross income, the citizen pays 10% Federal income tax.
For dollars $100,001-350,000, the citizen pays 25% tax.
For dollars $350,000-1 million, the citizen pays 35% tax.
For the dollars $1 million - infinity, the citizen pays 75% Federal income tax.

If you make less than $15,000 a year, you must pay the full 10%, because you drive on highways and visit parks just like the rest of us.

If you make $750,000 and don't like paying 75% tax on $400,000 of it and 25% tax on $250,000 of it, you can deposit as much as you want to reduce your income to your preferred level into 25-year government EE notes, or some similar long-term note, and not claim it as gross income on your 1040. If you want to withdraw that money before the 25 or 30 year note has maturated, then you must claim that money at that time on your 1040 as part of your gross income. If you let the money maturate for the full term of the government note, then you do not have to claim the money in your adjusted gross income.

Under my plan, everyone wins. People are not limited in their income potential by cruel taxation...they just have to responsibly save it or pay the higher tax rate. The rich don't get to complain about free loaders at the bottom of the income pool because they too are obligated to pay taxes...but at a lower rate than the current lowest rate for tax-qualified individuals.
The government wins because it keeps its fiscal strength through strong tax measures...plus gains the bonus of incentivizing investment in government bonds, increasing government's capital and liquidity.

Like all my plans, this one seems pretty fool-proof...


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