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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

Financial Times Editorial, Feb. 26, 2012

The tax debate America needs

… All of a sudden Washington is talking tax reform again. Last week’s release of tax reform plans by President Barack Obama and Republican contender Mitt Romney has raised hopes there could yet be a bipartisan middle ground after the general election. Both plans are flawed … Mr. Obama’s plan … brings in a new category of exemptions for manufacturers. They will pay a top rate of 25 per cent. It also reinforces the “double taxation” problem by levying a minimum tax on overseas earnings. Yet the plan as a whole would pay for itself. It offers a down payment on a debate America desperately needs to have. … Mr Romney’s plan … would reduce the corporate tax rate from 35 to 25 per cent, abolish the estate (inheritance) tax, and cut each personal tax level by a fifth. … Most of the estimated $500bn in foregone annual revenues would be filled by higher growth rates, according to Mr Romney (but with no explanation of how he reached such rosy assumptions) …

… America badly needs a tax system that is more efficient, simple and fair. The more plans in circulation this year the better the chances for tax reform next.

2-4-8 Response: Efficient, Simple and Fair

In reply to your challenge to circulate a tax plan that is "more efficient, simple and fair", the 2-4-8 Tax Blend should be considered.

Over the weekend Warren Buffet told CNBC that he would accept a tax on a person's total wealth. Bill O'Reilly (the Factor) supports a national sales tax and all other (OEDC) developed countries have a VAT. It is clear that bold reform requires an expansion of the tax base to lower the rates. Tax expenditures need to be eliminated and wealth, sales and income need to be taxed to achieve low flat rates.

I sponsor www.TaxNetWealth.com which advocates a very broad tax base by taxing individual and foreign-owned net wealth at 2% (above a $15,000 exemption), retail sales (or VAT) at 4% and income at 8%. It would yield $2.6 trillion – ($400 billion more than FY 2010 federal revenue).

The tax mix is inherently progressive and efficient. Rich and poor would pay the same low tax rates - making it the fairest tax system on the planet and discouraging tax avoidance. The concurrent elimination of payroll taxes for Medicare and social security (-to be funded from general funds) and a significant reduction of the corporate income tax rate to 8% should merit near universal support of the 2-4-8 Tax Blend from social liberals and business conservatives alike.

The basic shift in the tax burden is to let workers keep about 30% more income each year and pay more taxes gradually as they accumulate wealth. Capital gains, estate and gift taxes which tax wealth at the time of a transfer event would not be necessary. The 8% corporate income tax combined with the new economic mobility and consumer power of the working class would jump-start the economy.

Eugene Patrick Devany, JD, MPA
February 28, 2012
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Spread the word: Please let Congress know you want them to consider the 2-4-8 Tax Blend by simply tweeting "TaxNetWealth.com" or by copying any basic description and sending, faxing, or emailing it to at least one representative from each political party. Many representatives will only accept email through their individual websites.

Copyright 1985 to 2015 by Eugene Patrick Devany