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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.


C - Corp
4% VAT
8% Income

Maine Opinion

Bangor Daily News


Jan. 26, 2012, Editorial, "Wealth must be tied to tax debate"

2-4-8 Response

I fully agree with the premise of the title that, “Wealth must be tied to tax debate”. On the one hand it correctly suggests that a tax reform debate is needed; but at the same time it confuses the debate by failing to distinguish between a tax on net wealth and a tax on high income. This confusion is common in the media and one of the main reasons why I write this comment.

Tax attorneys will tell you that the federal government may tax net wealth, sales and/or income as a source of revenue. When you write, “their wealth is a logical place to start looking for tax revenue” it is not clear if you endorsing a net wealth tax or simply supporting higher income tax rates for high earners. I believe that if we tax a little of each base (i.e. wealth, consumption and income) we can resolve all of the federal tax issues (and let the politicians focus on the spending and debt issues).

In August of 2006, I proposed the 2-4-8 Tax Plan to the President’s Advisory Panel on Tax Reform. It consists of three flat rate taxes: a 2% tax on the Net Wealth of Individuals, a 4% Retail Sales tax and an 8% Payroll/Business Income tax. The exact same rates apply to the rich and poor. There are no different tax brackets, deductions or credits, and no favoritism. The three taxes would yield about $2.6 trillion per year (slightly more than the current combination of Income, Social Security, gasoline and other federal taxes and fees).

It is hard to imagine anyone that wouldn’t welcome a 2% tax on net wealth and a small 4% sales tax, in exchange for drastically reduced 8% individual income tax rate. Even the "fair and balanced" Bill O'Riley (a/k/a the Factor) supports a national sales tax (of about 3%) as a necessary component of tax reform. The concurrent elimination of social security, capital gains and estate taxes and a significant reduction of the corporate income tax rate to 8% should guarantee near universal support for the 2-4-8 Tax Plan from liberals and conservatives alike.

Don’t you think jobs would grow and the economy would boom with an 8% corporate tax rate? The 2-4-8 Tax Plan is fair and does it all (except clean up the spilled milk).

Eugene Patrick Devany, JD, MPA


Jan. 25, 2012, "In Romney returns, an argument for tax reform"

2-4-8 Response

I agree that in this election year the important, “question is how to reform the tax code” but this should go beyond simply making sure that, “those with great wealth pay their fair share”. I believe we can make the system fair, more efficient and provide incentives for all businesses (not just the manufactures, high technology and clean energy businesses singled out for counterproductive tax credits by President Obama). ...



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Copyright 1985 to 2015 by Eugene Patrick Devany