Rational Americans

Solution #1: Fair Automatic Simple Tax

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Rational Americans Rational Americans Rational Americans Rational Americans Rational Americans Rational Americans Rational Americans Rational Americans Rational Americans Rational Americans Rational Americans Rational Americans Rational Americans Rational Americans The FAST TAX The FAST TAX

FAST is fair, simple, progressive and automatic.  It was designed to replace our current, unfair, ever- growing, 75,000-plus-page tax code which nobody understands.

Because FAST eliminates all deductions, loopholes, special credits and most tax returns, tax evasion and fraud will be greatly reduced or eliminated.  As a result, even more needed revenue will be generated and this, in turn, will instill greater confidence in the U.S. economy here and throughout the world.

Lower FAST rates will provide taxpayers with substantial increases in disposable income — a virtual "raise".  This extra disposable income, when spent, will further increase demand for goods and services which, in turn, will generate new job opportunities for American workers.

Because FAST rates automatically self-adjust, depending on the state of the budget, deficits will be eliminated.  This feature will keep politicians' hands off the tax code and minimize their influence with the PACs which provide them with the Dark Money used to buy elections, i.e., our government!

FAST generates enough revenue to pay for all social programs, including health, education, veterans' healthcare, the Earned Income Credit (EIC), as well as infrastructure, the environment and the military.

FAST low rates more than compensate for the elimination of the Home Mortgage deduction.

FAST eliminates tax returns for the majority of employed tax payers, saves money on tax preparation fees and spares them the annual stress that comes during tax season.

FAST simplifies the tax-preparation process for the self-employed as well with its simple, clear, tax-liability computation method.

Reduction or elimination of tax evasion due to Tax-Return "inaccuracies"

Significant yearly savings for the IRS from reductions in printing and mailing of millions of tax forms, envelopes and pamphlets

A leaner IRS bureaucracy

Restoration of trust in the American economy and international Financial-Market Stability

Restoration of U.S. credit rating to AAA

One Caveat: We are not so naïve as to expect that those who benefit from the status quo and endeavor to hold on to power at any cost would be willing to effect any positive change when that change, in effect, would limit or quell their own power.

If we are to change the status quo for the majority of Americans, we will have to patiently organize to find, vet and actively support new, untainted and dedicated citizens¹ who will endeavor to make FAST the law of the land in accordance with the steps outlined below:

Congress Adopts FAST as the U.S. tax code
Congress Sets National Debt Payoff Period (number of years to Payoff)
Congress Sets Permanent Tax Rates (2% base rate recommended)
Congress Sets the Deficit Reduction Rate (DRR) to a value that achieves the desired "target National Debt payoff period" (A DDR of 30% of the Permanent Tax Rate is recommended for all brackets)
Optional - Congress Sets "Running Surplus" amount once the National Debt is paid off (500 $Billion recommended)

¹ There are innumerable Americans who would like to serve their country but are unwilling to take part in the ridiculous spectacle of American
 politics playing out on our televisions.  Perhaps our proposed, Rational Solutions might assuage their fears.

The 2 most consequential numbers in a taxpayer's tax return are the following:
A. The Marginal RateThe amount due before deductions

B. The Effective Tax RateThe amount due after deductions - what we actually pay  Through expansive use of deductions, loopholes and special credits, certain U.S. corporations  are able to substantially lower this rate – often paying less than 1%. – thus increasing  the national debt and further damaging the U.S. economy.  Obviously, this system has to go!

It should be obvious that, if all deductions, loopholes and special credits were eliminated, our government would have no problem raising all the revenue it needs.  In fact, if all deductions were eliminated, our current Marginal Rates would be too high and unfair to the poor and the middle class.

A much better alternative:  the Fair Automatic Simple Tax.

Americans are currently saddled with an ever-growing, $20 Trillion national debt.  It is no secret that this horrendous debt has been caused by a corrupt, inscrutable 75,000-plus-page tax code which is unable to raise the revenue necessary to pay for our government's expenses because it has been rigged to reward wealthy political-campaign donors with hefty tax cuts at the expense of the majority of Americans.

As everybody knows, our government is broke and paying untold $Billions in interest to foreign and domestic "lenders" which, in all probability, are also beneficiaries of our rigged tax system.  Needless to say, these $Billions in interest would be better spent to benefit all American citizens.

The bottom line: lowering tax rates without eliminating all deductions, loopholes and special credits under our current tax code would be irresponsible and would, necessarily, make the national debt even worse.

As long as our tax code is riddled with Deductions, Loopholes and Special Credits, raising the marginal rates will cause the following:

 A. A rise in Inversions from corporations whose disingenuous CEO's falsely claim that tax rates are
   already too high.
 B. More legal tax-dodging by wealthy taxpayers who will avail themselves of existing deductions,
   loopholes and special credits
will occur.
 C. Our 75,000-plus-page tax code will become even more complicated and subject to the addition of
   more deductions, loopholes and special credits.