A true tax proposal all could live with
So, I'm at work last night smoking a cancer stick, thinking about the raise I just got when it dawned on me.......... the perfect tax system that would not only boost workers morale, production and company loyalty.
What if the government were to simply say, "look, no more tax cuts. Instead what we propose is this: anyone making less than $100,000 a year every raise you get, all the overtime you get is non taxable. No FICA, no federal, no state or local. For the next 10 years that money is untouchable."
As for the companies to promote raises, the government offers tax credits to make sure companies aren't hurt by raises and offer a definitive structure of raises.... not guaranteed but based on performance. As for overtime, again tax credits are offered to companies but they must show that they are trying to fill positions so that overtime is not needed.
Now, if you leave the job voluntarily, you are taxed at your new job until you recieve wages equal to those you just left (so raises would be taxed if you left a decent waged job to work at Mccy D's).
If you left because of a layoff or a company closing, then your raises at the next job will not be taxed.
Now, if you make over $100,000 your raises are taxed, however, they are taxed at a lower rate. So if you make $100,000 and your tax rate is 25% and next year your recieve a $10,000 raise, the $100,000 is still taxed at 25% but that 10,000 is taxed at 15%.
Now, if you make over $1 million, any raise is taxed at same rate as before.
This punishes noone, inspires people to work harder and be more loyal. It allows companies breathing room as they don't have to match more FICA and so on and they recieve tax credits when they give merit raises.
This would be a definite boom to the economy and people maybe able to save their raises, invest them or use them to buy more.
This would help the people on the lesser end of the pay scales to catch up and maybe move upward. It would induce company loyalty and hard work because if you knew every 6 months you would get a 50 cent raise (which is what I get) every year I'm making $1 more an hour and it isn't taxed. Granted $40 a week may not seem like much but you save it every week it's $2,000+ more a year (tax free) and in 10 years it's $400 more a week tax free, $20,000 a year and you save that increase or part of it every year.... you're going to have a nice chunk of change for retirement or the kids to go to college, or a vacation home or whatever.
I feel that is a proposal everyone can live with.
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I just love people who use the excuse "I use/do this because I LOVE the feeling/joy/happiness it brings me" and expect you to be ok with that as you watch them destroy their life blindly following. My response is, "I like to put forks in an eletrical socket, just LOVE that feeling, can't ever get enough of it, so will you let me put this copper fork in that electric socket?"
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