ii iv viii	Merry Christmas and Happy New Year 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

Hawaii Reporter, July 23, 2012

Tax the Rich or We’ll Kill this Dog

by Frank Salvato

... The “balanced deal” that Ms. Murray alludes to is a deal that would achieve the Progressives’ and Liberals’ ultimate goal, expanding the gulf of the tax burden between what is perceived to be the Lower and Middle Classes and the Upper-Middle and Upper Classes. ...

... Yet, Murray insists, “There is absolutely no reason...that we need to extend the tax cuts for the rich as a precondition for reforming the tax code.”

... Presented with the prospect of executing comprehensive tax reform, tax reform that would create an equitable tax code while eliminating crony loopholes created and instituted by the opportunistic political class, Democrats would rather obstruct meaningful and vitally needed tax reform to further their election year agenda of affecting class warfare amongst the American people.

2-4-8 Response

Recession and the Wealth Gap

According to a July 2012 report from the Congressional Research Service, in 1995 the top 10% of the country had 67.8% of the country’s wealth while the bottom 50% shared only 3.6% ($1,912 billion [in 2010 dollars]). The bottom share eroded to 2.5% before the Great Recession of 2007 and by 2010 it had tumbled to 1.1% ($584 billion) – (a 70% loss of $1,333 billion over 15 years). The loss of wealth to the bottom half the country was offset by a 6.7% gain for the top 10%. This gain of $3,558 billion over 15 years is equal to 6 times the wealth that half the country lives on. A wealth distribution (“wealth gap”) of this extreme has not been seen in the U.S. since the Great Depression of 1929 (when unemployment was also as bad).

Replacing job killing payroll taxes with a 2% net wealth tax (excluding $15,000 cash and retirement funds) is the tough medicine needed to create millions of jobs.

Income tax loopholes would be unnecessary if the tax rate was lowered to 8% (and capital gains, estate and gift taxes were eliminated). These changes encourage maximum investment.

Completing the perfect tax reform plan would be a 4% value added tax (VAT) on business and an 8% corporate income tax rate for the most competitive business rates in the world.

Let us know at www.TaxNetWealth.com if you can identify a logical, legal or economic reason why this 2-4-8 Tax Blend would not produce a sustainable economic recovery as promised.

Eugene Patrick Devany, JD, MPA

 

 

	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