By Michael Master
Two years ago, many liberals rejected my idea for a flat tax on all Americans. The plan called for a specified amount of deductions for dependents, mortgages and health-care insurance so that those making under $50,000 annually would pay almost no taxes, and those at a million dollars in income would pay close to 30 percent. Some people would actually get payments from the government for purchase of health insurance. Liberals didn’t like the concept of a flat tax – so it was modified to a two-tier tax structure with no deductions. It had a 10 percent tax for income under $100,000 and 25 percent tax on all income over $100,000.
Tax on $50,000 = $5,000 (10 percent)
Tax on $100,000 = $10,000 (10 percent)
Tax on $200,000 = $35,000 (17.5 percent)
Tax on $500,000 (top 1 percent) = $110,000 (22 percent)
Tax on $1,000,000 = $235,000 (23.5 percent)
Many liberals said that they liked that idea. It maintained a “progressive” tax element to it, and it eliminated loopholes for the wealthy. Conservatives liked it because everyone would pay some tax to have a vested interest in America.
Well, Rep. Paul Ryan just proposed that exact tax plan in his budget for 2013. So, are liberals and conservatives now going to support the “Ryan Plan”? It also replaces the $500 billion that is taken from Medicare by Obamacare, it repeals Obamacare, which saves taxpayers around $2 trillion over 10 years, according to the CBO, and it cuts government spending dramatically.
The Democrat-led Senate has not passed a budget since it took control in 2007. It rejected 17 financial proposals from the Republican House in the last year alone. Harry Reid would not even let any legislation about spending from the Republican House be introduced to the Senate for a discussion and a vote.
The Senate also rejected the White House proposed budget by a vote of 99 to 0. Both Republicans and Democrats hated the White House budget. The White House has no economic sense; it is run by lawyers.
My tax plan is still better than the Ryan plan because it encourages everyone to purchase health insurance, without the need for mandatory insurance, to have babies and to purchase a home. You can read about it in my latest book, “Rules for Conservatives.”
But since many liberals and conservatives agreed to this form of graduated flat tax more than two years ago, it’s OK with me. It moves America in the right direction. And it gets us closer to killing class-warfare politics in America.
Now, are conservatives and liberals going to support the tax portion of the Ryan plan? My bet is that Obama will not back it because it helps eliminate class-warfare politics. My bet is that Obama and his minions will disparage it, demonize it and joke about it like Alinsky instructed community organizers to do to maintain power.
The Ryan tax plan also reduces corporate taxes to 25 percent from 35 percent to be more in line with the rest of the world so that businesses will not move from the U.S. That does not go far enough. We need to encourage manufacturing to return to America. We need to reduce corporate taxes to zero – and then increase the taxes on capital gains and stockholder dividends to the normal tax rates for individuals. Manufacturing will then return to our shores in a big way, corporations will be motivated to keep profits in the companies as retained earnings to invest in the businesses, double taxation on stockholders will be eliminated, and the perception that stockholders pay too small of a tax (the Warren Buffet 15 percent rule) will be silenced.
So, are you going to support the Ryan plan to help save America from economic disaster?
Michael Master is the author of “Save America Now!” and “Rules for Conservatives.”
