We are all into mathematics, so I figured I would share something I wrote about the mathematics of a fair rational progressive IncomeTaxSystem with Mincome I wrote for US-TaxDay (YYYYY-04-15):

It is almost TaxDay in the USA (YYYYY-04-15).  I present a rational TaxSystem for IncomeTax:

TaxOwed = ( Income / TaxRate ) - ( Constant + Deductions )

It is that simple. Let us throw in some dumb numbers:

*	TaxRate = 2
*	Constant = 10,000.00 U$D

Ignoring deductions, the TaxOwed can be seen here:

http://wolframalpha.com/input/?i=y%3D(x%2F2)-10000

As of can see, if one has an income of 0.00 U$D, one receives + 10,000.00 U$D, not enough to live, but will keep one going until one gets back on one’s feet.  This is called income.

As income increases, the TaxOwed approaches 50%. For high incomes, the tax is pretty flat but still a bit progressive.

Let us look at how the deductions help the typical working person:

Let us suppose that we have 2 people earning 30,000.00 U$D annually.  One lives rent free with parents; while the other, pays 1,000.00 U$D / month in rent:

The rent-free person has no deductions:

( 30,000.00 U$D / 2 ) - 10,000.00 U$D = 5,000.00 U$D

This person owes 5,000.00 U$D; so now, has 25,000.00 U$D after taxes.

The rent-paying pony pays thus after deductions rent:

( 30,000.00 U$D / 2 ) - ( 10,000.00 U$D + 12, 0000.00 U$D ) = - 7,000.00 U$D

The rent-paying person 12,000.00 U$D on rent, so the 30,0000.00 U$D became 18,000.00 U$D after rent and after receiving the - 7,000.00 U$D in tax, this person has 25,000.00 U$D.

Both people have the same amount of money after taxes and rent.

Rich people are always looking for loopholes to get out of paying their fair share.  I have hacks for fixing that:

*	Reduce the total deductions on the books to 99.
*	Allow only a score (20) deductions on each return.
*	Limit the value of all deductions on a TaxReturn combined to 1,000,000.00 U$D.

We have too many loopholes. Limiting the deductions on the books to double-digit numbers makes it hard to slip in loopholes.  The average working person qualifies for only 5-10 deductions.  I figure that an honest rich person should only qualify for some teen deductions (a dozen (12) to a score (20) deductions).  Rich people overstate their deductions.  We should limit them to a total value of 1 million U$Ds so that rich people will have to pay their fair share.

We are all into mathematics, so I figured I would share something I wrote about the mathematics of a fair rational progressive IncomeTaxSystem with Mincome I wrote for US-TaxDay (YYYYY-04-15): It is almost TaxDay in the USA (YYYYY-04-15). I present a rational TaxSystem for IncomeTax: TaxOwed = ( Income / TaxRate ) - ( Constant + Deductions ) It is that simple. Let us throw in some dumb numbers: * TaxRate = 2 * Constant = 10,000.00 U$D Ignoring deductions, the TaxOwed can be seen here: http://wolframalpha.com/input/?i=y%3D(x%2F2)-10000 As of can see, if one has an income of 0.00 U$D, one receives + 10,000.00 U$D, not enough to live, but will keep one going until one gets back on one’s feet. This is called income. As income increases, the TaxOwed approaches 50%. For high incomes, the tax is pretty flat but still a bit progressive. Let us look at how the deductions help the typical working person: Let us suppose that we have 2 people earning 30,000.00 U$D annually. One lives rent free with parents; while the other, pays 1,000.00 U$D / month in rent: The rent-free person has no deductions: ( 30,000.00 U$D / 2 ) - 10,000.00 U$D = 5,000.00 U$D This person owes 5,000.00 U$D; so now, has 25,000.00 U$D after taxes. The rent-paying pony pays thus after deductions rent: ( 30,000.00 U$D / 2 ) - ( 10,000.00 U$D + 12, 0000.00 U$D ) = - 7,000.00 U$D The rent-paying person 12,000.00 U$D on rent, so the 30,0000.00 U$D became 18,000.00 U$D after rent and after receiving the - 7,000.00 U$D in tax, this person has 25,000.00 U$D. Both people have the same amount of money after taxes and rent. Rich people are always looking for loopholes to get out of paying their fair share. I have hacks for fixing that: * Reduce the total deductions on the books to 99. * Allow only a score (20) deductions on each return. * Limit the value of all deductions on a TaxReturn combined to 1,000,000.00 U$D. We have too many loopholes. Limiting the deductions on the books to double-digit numbers makes it hard to slip in loopholes. The average working person qualifies for only 5-10 deductions. I figure that an honest rich person should only qualify for some teen deductions (a dozen (12) to a score (20) deductions). Rich people overstate their deductions. We should limit them to a total value of 1 million U$Ds so that rich people will have to pay their fair share.