Here's my proposal for a true, just Income Inequality Narrowing Tax Proposal, which I am calling The Fair Income Tax Credit.
The below Fair Income Tax Credit Proposal is for all Married Filing Joint US Federal Income Tax Returns. The amounts for Single Tax Returns would need to be adjusted in a reasonable manner.
The Fair Income Tax Credit Computation for each year:
2.5% of Taxable Income from $1 to $50,000
plus 2.0% of Taxable Income from $50,001 to $75,000
and plus 1.5% of Taxable Income from $75,001 to $100,000
and plus 1.0% of Taxable Income from $100,001 to $125,000
and plus 0.5% of Taxable Income from $125,001 to $150,000
less 0.5% of Taxable Income from $150,001 to $175,000
and less 1.0% of Taxable Income from $175,001 to $200,000
and less 1.5% of Taxable Income from $200,001 to $225,000
and less 2.0% of Taxable Income from $225,001 to $250,000
and less 2.5% of Taxable Income from $250,001 to $300,000
Thus, here would be the resultant Fair Income Tax Credit for a married couple filing jointly at different levels of Taxable Income:
Taxable Income of $25,000.....2.5% X $25,000 =.......................$625
Taxable Income of $50,000.....2.5% X $50,000 =....................$1,250
Taxable Income of $75,000.....$1,250 + 2.0% X $25,000 =.....$1,750
Taxable Income of $100,000...$1,750 + 1.5% X $25,000 =......$2,125
Taxable Income of $125,000...$2,125 + 1.0% X $25,000 =......$2,375
Taxable Income of $150,000...$2,375 + 0.5% X $25,000 =.....$2,500
Taxable Income of $175,000...$2,500 - 0.5% X $25,000 =......$2,375
Taxable Income of $200,000...$2,375 - 1.0% X $25,000 =......$2,125
Taxable Income of $225,000...$2,125 - 1.5% X $25,000 =.......$1,750
Taxable Income of $250,000...$1,750 - 2.0% X $25,000 =......$1,250
Taxable Income of $275,000...$1,250 - 2.5% X $25,000 =.........$625
Taxable Income of $300,000...$1,250 - 2.5% X $50,000 =............$0
Taxable Income Above $300,000.....................................................$0
Given how incredibly Income Inequality Expanding nearly all of the largest of the Tax Loophole Extenders now being debated are, I wouldn't pass any of them unless they were accompanied at the minimum with the above Fair Income Tax Credit Proposal, with an increase in the US Federal Minimum Wage and with Student Education Loan Reforms including permitting students to refinance both all of their Federal Education Loans and all of their Private Financial Institution Education Loans at the current market interest rates.
I think that any fair Dynamic CBO Scoring of my above Fair Income Tax Credit Proposal would result in a significant amount of US Government Debt reduction over the next 10 years due to the resultant substantial increase in US consumer spending, the explosive US GDP growth along with the related much higher US Government Tax Revenues due to this income inequality narrowing tax proposal.
I also think that any Independent, Democratic or Republican candidate running for US President in 2016, with something similar to this Fair Income Tax Credit as a key component of his or her campaign, would be in a very elevated position to win.
