Taxes & Government Spending
KFW FEDERAL TAXES & BUDGET PROPOSAL
You cannot talk taxes in my view unless you address federal spending as well. My three year budget and tax reform plan which I released on 7 December 2015 is comprehensive and should go a long way toward getting our nation back onto a sound fiscal foundation. I AM THE ONLY CANDIDATE TO PROPOSE A SPECIFIC THREE YEAR COMPREHENSIVE PLAN. To see my entire tax plan visit here; highlights are as follows:
1.) Reduce the number of personal income tax brackets from 7 to 4:
Reduced Individual Tax Rates to: 9%, 17%, 26%, 32.5%
2.) Reduce the corporate income tax rate from 39% to 22.5%.
3.) Reduce long term capital gains income tax rates to as low as 15%
–reward investment in American companies.
4.) Abolish (AMT): Alternative Minimum Tax provision
5.) Cut the payroll social security tax rate from 6.2% to 4.75%.
6.) Eliminate the payroll tax cap on wages earned
7.) Raise Medicare payroll tax rate from 1.49% to 1.75% on all income.
8.) Adjust Social Security full benefit age qualification for citizens born after 1960.
9.) Cut federal spending by 1% across the board or approximately 35 billion dollars.
10.) Repeal Obama-CARE a 2-track strategy: fight for repeal first while simultaneously pursuing cost-cutting reforms. We do not as a party have the luxury of unlimited time to wait for repeal to happen all the while ignoring the high cost of this mis-guided law. The issue must be attacked on both fronts; I am committed to this approach.
(11.) Cap “Schedule-A” itemized deductions to $30,000.00.
(12.) Eliminate section 179 and bonus 50% accelerated depreciation provisions.
(13.) Exempt social security wages from U.S. federal income tax for the beneficiary’s first 12 years.
(14.) Eliminate all refundable tax credits.
(15.) Move certain charitable deductions directly to “Form 1040” (not subject to schedule-A limits). Taxpayers employed by, a benefactor of or affiliated with a private foundation that is claimed as a charitable deduction can only claim this deduction on “Schedule-A”.
(16.) Move personal casualty losses directly to “Form 1040” (not subject to schedule-A limits).
(17.) The federal government must re-pay all monies borrowed from the Social Security trust fund with interest (market rates not to exceed 4%) within 12 years of passage of this law. Future borrowing from the trust fund is prohibited.
CLOSING STATEMENT: This proposal cuts real federal spending, cuts individual income tax rates, cuts corporate income tax rates, simplifies the tax code, eliminates gimmicks and fraud-prone loop-holes, broadens the tax base, freezes federal spending for two years and goes a long way towards ensuring Social Security and Medicare are well funded and solvent for many generations to come. According to the Tax Foundation, “…eight presidential candidates have released tax reform proposals that lower marginal tax rates significantly. Yet, each of these proposals is estimated to cost more than $500 billion over ten years, with some reducing federal revenues by over $10 trillion. These high deficit figures indicate that candidates have not proposed sufficiently ambitious measures to broaden the U.S. tax base.”
There are many ideas out there and I am open to suggestions to improve upon what I have proposed today; I reserve the right to amend this proposal for the better. I am, however, not in favor of a national sales tax, a value added tax nor any kind of new tax that could possibly come along side of our current income-tax. I welcome your feedback and critique.