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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

Los Angeles Times, Feb. 27, 2012

Former Obama aide Lawrence Summers says tax reform is inevitable

by Jim Puzzanghera

... Lawrence Summers, a former Treasury secretary who left the White House in late 2010 ... argued that the corporate tax code is in desperate need of its first overhaul since 1986 and that Washington politicians will find the changes are inevitable given the problems the nation is facing. Eliminating corporate tax breaks is a much better way to raise money that increasing marginal corporate or individual rates, he said. ... America’s rich have become richer with the share of income going to the top 1 per cent increasing from about 10% to about 20% over the last generation while middle class incomes have stagnated ... Summers warned that the more tax issues are discussed, the more likely candidates will be to make promises to voters that would hinder hopes for a bipartisan deal after the election.

2-4-8 Response: Tax Reform Inevitable?

Lawrence Summers wrongly believes discussion of tax issues will “hinder hopes for a bipartisan deal after the election.” For example, this weekend Warren Buffett not only spoke of increasing income taxes on the wealthy, he also told a CNBC interviewer that he would be open to a tax on net wealth. Bill O’Reilly (a/k/a the Factor) supports a national sales tax (of 3%) as a necessary component of tax reform. There are a lot of good ideas that get shot down in the pre-discussion stage by don’t-rock-the-boat guys like Mr. Summers. Indeed, that is why you haven’t even heard about the 2-4-8 Tax Blend.

The 2-4-8 Tax Blend broadens the tax base by taxing individual and foreign-owned net wealth at 2% (above a $15,000 exemption), retail sales at 4% and income at 8%. It would yield $2.6 trillion – ($400 billion more than FY 2010 federal revenue). The tax blend is progressive even though rich and poor would pay the same tax rate. Event-based taxes from capital gains, estate and gift taxes would not be necessary because net assets are taxed over time. The concurrent elimination of the Medicare and social security payroll tax (to be funded from general funds) and a significant reduction of the corporate income tax rate to 8% should merit near universal support from social liberals and business conservatives alike.

Eugene Patrick Devany, JD, MPA


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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