Results 1 to 6 of 6

Thread: Overview of Rand's Tax Plan

  1. #1

    Overview of Rand's Tax Plan

    http://taxfoundation.org/blog/econom...ax-reform-plan

    Personal Income Tax and Payroll Tax:

    Sen. Paul would make a number of changes to the tax code for individuals. He would replace the current seven tax bracket structure with a flat rate of 14.5percent and apply that tax rate to all income – wages and salaries,capital gains, dividends, interest, and rents.

    The plan would include a $15,000 standard deduction (per filer) and a $5,000 per person personal exemption. This means that a family of four would pay no income tax on their first $50,000 of income ($55,000 for a family of five, etc.).

    Retirement accounts remain as they currently are and in our modeling we assumed that the exclusion for employer-provided health care remains.

    The plan retains home mortgage and charitable deductions, the earned income tax credits,and the child tax credit and eliminates all other tax credits and deductions.

    The plan would eliminate the payroll tax...
    Compare how much you pay now with how much you'll pay under Rand's plan. To figure out your income tax liability under the current system (assuming you don't know it off the top of your head), use this calculator.Separately, take your total wages and multiply by 7.65% (payroll taxes). Add these two numbers together. To figure out your liability under Rand's system, take your total income, subtract the proper deductions/exemptions (see article above for details), and multiply the remainder by 14.5%.

    Tell us how much you'll save!

    For a general idea of how this will affect people at different income levels:

    Single Filer, 1 Exemption, No Dependents, $15,000 wages
    Current System = $485 (income tax) +$1147 (payroll tax) = $1632
    Rand's System = $0
    Savings = $1632(100% cut)

    Single Filer, 1 Exemption, No Dependents, $20,000wages
    Current System = $1024 (income tax) + $1530 (payroll tax) =$2554
    Rand's System = $0
    Savings = $2554 (100% cut)

    Single Filer, 1 Exemption, No Dependents, $25,000 wages
    Current System =$1774 (income tax) + $1912 (payroll tax) = $3686
    Rand's System =$725
    Savings = $2961 (80% cut)

    Single Filer, 1 Exemption, No Dependents, $30,000 wages
    Current System = $2524 (income tax) +$2295 (payroll tax) = $4819
    Rand's System = $1450
    Savings =$3369 (70% cut)

    Single Filer, 1 Exemption, No Dependents, $35,000 wages
    Current System = $3274 (income tax) + $2677 (payroll tax) = $5951
    Rand's System = $2175
    Savings = $3776 (63%cut)

    Single Filer, 1 Exemption, No Dependents, $40,000wages
    Current System = $4024 (income tax) + $3060 (payroll tax) =$7084
    Rand's System = $2900
    Savings = $4184 (59% cut)

    Single Filer, 1 Exemption, No Dependents, $45,000 wages
    Current System =$4774 (income tax) + $3442 (payroll tax) = $8216
    Rand's System =$3625
    Savings = $4591 (56% cut)

    Single Filer, 1 Exemption,No Dependents, $50,000 wages
    Current System = $5819 (income tax) +$3825 (payroll tax) = $9644
    Rand's System = $4350
    Savings = $5294 (55% cut)

    Single Filer, 1 Exemption, No Dependents,$60,000 wages
    Current System = $8319 (income tax) + $4590 (payroll tax) = $12909
    Rand's System = $5800
    Savings = $7109 (55%cut)

    Single Filer, 1 Exemption, No Dependents, $70,000wages
    Current System = $10819 (income tax) + $5355 (payroll tax) =$16174
    Rand's System = $7250
    Savings = $8924 (55% cut)

    Single Filer, 1 Exemption, No Dependents, $80,000 wages
    Current System =$13319 (income tax) + $6120 (payroll tax) = $19439
    Rand's System =$8700
    Savings = $10739 (55% cut)

    Single Filer, 1 Exemption,No Dependents, $90,000 wages
    Current System = $15819 (income tax)+ $6885 (payroll tax) = $22704
    Rand's System = $10150
    Savings =$12554 (55% cut)

    Single Filer, 1 Exemption, No Dependents,$100,000 wages
    Current System = $18334 (income tax) + $7650(payroll tax) = $25984
    Rand's System = $11600
    Savings = $14384(55% cut)

    As reflected in the figures above,Rand's plan eliminates the employee portion of payroll tax, but it also eliminates the employer portion.

    The plan also eliminates:

    1. estate tax
    2. gift tax
    3. excise tax
    4. customs duties

    Finally, the existing corporate income tax will be replaced with a 14.5% flat-rate corporate income tax with fewer deductions.

    In total, the plan reduces federal taxes by about $300 billion per year.
    Last edited by r3volution 3.0; 07-27-2015 at 12:23 AM.
    "Democracy is the theory that the common people know what they want, and deserve to get it good and hard."

    -H. L. Mencken



  2. Remove this section of ads by registering.
  3. #2

    An independent contractor (not an employee) in the current system

    Has to pay the payroll tax and also has to pay the portion that an employer would usually pay. For an independent contractor there is a 7.5% penalty for not being an employee because of this, on top of not getting any sick days or vacation or 401k or health benefits or any other employee benefits including a bit more job security. It seems Rand's plan would benefit independent contractors also.

  4. #3
    I think the only real argument most people have with his plan is:

    (A) It reduces revenues by a marginally significant amount.
    (B) It doesn't have the exemptions that they think are important.

    In the first case, that is a reasonable criticism for a moderate or liberal to have. Explaining how this will be such a boon to the economy and helps even low wage workers and families so much is a great way to counteract this. In addition, the plan prioritizing social security and Medicare actually makes it more progressive.

    In the second case, they need to realize that this is precisely the problem with the current system.

    I love this tax plan.
    "Freedom, then Pizza!" - Oklahoma State GOP Convention 5/11/2012

  5. #4
    This is a very important thread and needs to be bumped. Everyone needs to know the basics of Rand's plan.
    Knowledge is Liberty!


  6. #5
    Its a huge increase for all those corporations paying zero or making money by lobbying the government. These lobbyist aren't going to to just stand by while Rand takes a Chain saw to their bottom line. Although this is giving me a great idea for a new ad.

  7. #6
    Quote Originally Posted by nikcers View Post
    Its a huge increase for all those corporations paying zero or making money by lobbying the government. These lobbyist aren't going to to just stand by while Rand takes a Chain saw to their bottom line. Although this is giving me a great idea for a new ad.
    Corporations pay zero income taxes when they have zero net income.
    Knowledge is Liberty!




Similar Threads

  1. Replies: 5
    Last Post: 06-20-2015, 01:18 PM
  2. Replies: 0
    Last Post: 03-18-2011, 10:44 AM
  3. Overview of action
    By TheAnswerTo1984is1776 in forum U.S. Political News
    Replies: 0
    Last Post: 06-09-2010, 10:48 PM
  4. Overview of Congress
    By Bruno in forum U.S. Political News
    Replies: 2
    Last Post: 09-24-2009, 09:15 AM
  5. Overview of what I'm doing/suggestions
    By thehighwaymanq in forum New Jersey
    Replies: 0
    Last Post: 01-21-2008, 04:58 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •