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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

NY Post, Feb. 24, 2012

Reform Poison, O’s corporate-tax plan:
Just the same old tricks

by Charles Gasparino

Charles Gasparino is a Fox Business Network senior correspondent. He opines:

... You’ve got to hand it to President Obama: He can take one of the most prosaic, albeit important, topics in the country — tax reform — and turn it into a rip-roaring class-warfare attack designed to do nothing more than get him re-elected.

... Obama & Co. say the reform would make American businesses more competitive, since it aims to bring the top tax rate for corporations down to 28 percent from the current 35 percent ... they talk about as “closing loopholes” to pay for the lower rates is something else: They’re actually ending so many deductions, exemptions and the like that tax receipts would actually shoot up.

2-4-8 Response: Obama Corporate Tax Reform

Mr. Romney wants to switch to a “territorial” based tax system and Mr. Obama calls for “a minimum tax on overseas profits”. Mr. Gasparino is concerned, “such a tax would probably tank the stock market, since so many big corporations make profits outside the United States.” Shall we do nothing as jobs are lost and US corporations create foreign subsidiaries to transfer contractual and intellectual property assets overseas in order to shift or defer the accounting of income?

It is apparent that income is fungible to many. Both wealthy individuals and multinational corporations can pay taxes when and if they are good and ready (i.e. after their demise). This multi-year accounting must stop and taxes must be based on net wealth which is not so easy to hide.

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. Diverse individuals and groups from Bill O’Reilly (a/k/a the Factor) to Herman Cane and the Bipartisan Policy Center support a national sales tax (between 3 and 9%) as a necessary component of tax reform. Periodic (event-based) wealth taxes from capital gains, estate and gift taxes would not be necessary because of the wealth tax. The concurrent elimination of payroll taxes and a significant reduction of the corporate income tax rate to 8% should merit near universal support from social liberals and business conservatives alike. The winners and losers (if there be any) do not follow any traditional partisan or political spectrum.

Please think outside the box before you react. Try to contrast a 30% income tax with an 8% income tax joined with a 2% wealth tax for each of the next 11 years. The latter combined income-wealth tax would permit an individual to save and keep at least 22% more salary each year. Now that’s real economic mobility-especially for young people starting out.

Corporations would feel less of a need to influence politicians once tax incentives are off the table. How would an 8% corporate income tax affect jobs and the economy? Those answers are better left to your talents and dreams for a brighter future.

Eugene Patrick Devany, JD, MPA


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Copyright 1985 to 2015 by Eugene Patrick Devany