Better start planning

[Shaps]

It's because you use adjusted gross income that your plan goes right out the window. So much of income for top wage earnings is in options and other non tangibles which are instead taxed at a much lower capital gains rate. This means that high earners may pay 30% of their earnings after substantial pre-tax earnings and HSA deductions, but the much larger form of actual income is at a discount not available to poor and middle class earners.

Instead, if you want to say a 10-15% tax on all earnings over 10,000, including the cash value of all options and stocks, before deductions and eliminate capital gains altogether, you would have a much more equitable system.

I'm good with working out some measure like that. I'm more in the camp of I don't care how you earn money - capital gains, whatever.

Total earning for the year: 15% - regardless how you earned it. Do away with all loopholes and deductions. Flat % on everyone.

I could get behind the under $10k thing - actually I'd lean towards under $15k I think. Don't tax younger people doing summer jobs, etc. earning for themselves.

Wait there's more - because I'd like a compromise in health care to shut the politicians up. So this works (massage the numbers as you think more reasonable) this just my rough idea:

Under $15k/year: 3% tax on earnings (applied directly to health care)
Over $15k/year: 20% tax on earnings (3% applied directly to health care)

The 3% for health care fund pays for the following for ALL citizens regardless of earnings:
2xDental check up and standard cleaning per year
2xDoctors check up and standard tests/bloodwork per year

Private health care/funds pay for extended benefits and coverage under the free market system.

Ensuring consistent check-ups, cleanings, and preventative measures for all citizens ensures an overall healthier populous - while ensuring the rest of the system is not controlled by Government 100% resulting in reduced innovation and quality of care.

Something like that - what think?