Tab Taxes Explained

What the new tax system will do:

- First and foremost, it will cut RED TAPE.

- This will be implemented on a 2-3 page law. Another new concept, a law that is understandable to the average person!!! All laws should be limite
politicians can't get things fixed. Of course, the American people would have to want such a law, not something jammed down their throats. By an
Americans need to get involved more!!!!

- American's working for a company will never have to file a tax return again. No more fear that the deductions they took were not legal, no more fear of a
- The current tax system applies to business income and investment income (capital gains) but at the new rates. Until the new leaders can simplify

- It will free up 100k of IRS agents to go find all the fraud and waste in the government programs including themselves. Just can't terminate them and caus
- 10's of Billions of hard earned taxpayer money would not be refunded to people who are not EVEN ENTITLED TO IT.
- 10's of Billions of hard earned taxpayer money would not be paid to dead people in social security benefits.

- You think new fraud will pop up from the small companies who will collect taxes and not remit payment to the Government?
- The U.S. government knows about every company in business. Not hard to figure who didn't pay. Just need to actually do their job!!!, Politicians d
- Now that only Company tax returns are being filed, there will be 100k of agents freed up to find them.
- Don't think reviewing Social Security payments will take long. The U.S. knows everyone born, everyone who died, and everyone who has a social s
-- Math calculations. We have 300 million people, if everyone were collecting social security, here is how long it would take to verify pa
-- Lets say we are so screwed up. It takes an agent, 2 hours to figure one out
300,000,000 People
100,000 Agents
3000 per agent
4 per day for an agent
-- Based on the math, it will take about 3 years. Since only around 100,000,000 are actually receiving it, that time is cut to 1 year
-- So the IRS agents are employed for the first year of the new law, and start their new job with the next year tax returns. Through attri
to permanently cut 60-80% of the IRS force.
-- More people will be working under the table, good theory, but everyone has a social security number, RED FLAG for the government.

- Checks and Balances, since the current system does not work!!!! Giving responsibility back to Americans!!!, I could never get elected president, that is to
if the politicians read this. If I actually started to have a chance to win.
- The employee - Needs to keep up with the Social Security earning report. Most just throw it away, but you need to make sure that your company
- The government keeps on top of Social Security benefits verification. Something like this - The recipients go to a government office and re-verify
it will not take long. There are millions and millions of workers in federal/state offices throughout the US. Just need to get our pride back and make
is a major problem in government spending.

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Tab Taxes Explained

should be limited to 5 pages, no more 1500 pages, no wonder these

throats. By an overwhelming election victory the voice can be heard!!!

no more fear of an audit, no more fear of the IRS putting a lien on them, etc.....
ers can simplify them.

e them and cause a bigger problem crisis for America.

!!!, Politicians doing their jobs, "What a concept".

ho has a social security number.

take to verify payments.

750 Days
ut to 1 year
s. Through attrition you will be able

he government.

esident, that is totally crazy. I maybe admitted to the psych ward

t your company is reporting your earnings, that is how the benefit is paid out.
ce and re-verify once a year. If they are incapable, then the gov't will goto you.
back and make us the MOST SOLVENT NATION again. Fraud

Page 2

http://www.usgovernmentspending.com/
http://www.google.com/publicdata/
Taxable Income (Wages)
See Tax Calculations

National Sales Tax on

everything you buy except
housing.

Wage figures
http://www.bls.gov/oes/current/oes_nat.htm#00-0000
Tax Revenue
http://www.usgovernmentrevenue.com/downchart_gr.php?chart=F0-fed
2008 IRS Data
http://www.irs.gov/taxstats/indtaxstats/article/0,,id=133414,00.html#_complete
5,605,365,012,500 Total Taxable Income
448,429,201,000
8.00% Social Security Tax, no tax on the first 25K
672,096,988,810
10.00% Income Tax Effective Rate, no tax on first 25k,(see tax calc), based on 2008 IRS data that was close to the 2010 income figures.
1,120,526,189,810 Tax Revenue Employee
448,429,201,000
8.00% Social Security Tax (Employers Matching)
4,484,838,822,690 Disposable Income (Income - Taxes) really around 7 trillion because of the 25k exemption has to be added back.
2,242,419,411,345 NON TAXABLE

50% No Taxes on HOUSING/UTILITIES

(I think the % is lower but better safe than sorry.)

2,242,419,411,345 Disposable income after taxes/housing (because they are not taxed)
1,121,209,705,673 50% of disposable income saved, in reality we probably have 5-10%
112,120,970,567 10% National Sales Tax (number will be a lot higher due to the non reporting tax payers, they still have to buy things.)
Business tax
Business receipts as of 2007 per IRS web site
29,388,832,943,000
2,938,883,294,300
10% Gross Margin before taxes
293,888,329,430
10% Corporate Tax, leaving the company 9% GM after taxes, which is fair, a company needs to make that to be in business
Other taxes
132,900,000,000 Ad Valorem Tax
139,600,000,000 Other Revenue (Federal Deposits, Unemployment insurance, Railroad taxes.)
0 10% Capital Gains Tax (will be used to pay down the debt). Cannot be a fixed stream of revenue, gains are not always there.
Total taxes (Items in red)
15.06%
$14,927,120,000,000.00 GDP Currently
2,247,464,690,807 % of GDP
First law to pass, new tax code with this stipulation. NO MATTER WHAT, SPENDING IS CAPPED AT 15% of GDP UNTIL THE DEBT IS PAID OFF!!!!!!!!!!!, can be done in 8-12 years.....
Very conservative numbers used, if you go to the google site above (GDP&Personal Income link), you will see the US wages for 2010 at 7.9 Trillion. That is only reported wages!!!
Once the debt is paid off and we have a 2 year surplus for Disasters/Wars/BAD LUCK. Personal income tax rate goes down equally per bracket to bring us back to the 15% of GDP level.
Short fall fail safe kicks in if all revenues collected are less than 15% of GDP. That will be a major problem if that ever has to be implemented. It will never be implemented for other things!!

Tax Calc
2008 Figures from the IRS
Taxable income
Size of adjusted gross income

All returns
Number of
returns
(1)

All returns, total

No adjusted gross income

Amount in 000's

(2)

Tax Revenue
All returns
x Tax rate
x income

(3)

142,450,569

107,994,637

5,652,925,474

2,489,989

$1 under $5,000

11,638,707

720,341

817,956

$5,000 under $10,000

12,139,638

3,252,272

5,484,255

$10,000 under $15,000

11,702,056

6,155,465

23,111,770

$15,000 under $20,000

11,076,002

7,623,186

50,039,575

$20,000 under $25,000

9,866,247

8,360,339

77,438,979

$25,000 under $30,000

8,743,581

8,078,487

104,419,992

$30,000 under $40,000

14,554,280

14,031,759

263,132,647

$40,000 under $50,000

11,087,123

10,880,515

289,669,727

$50,000 under $75,000

19,196,461

19,044,060

748,729,452

$75,000 under $100,000

11,729,485

11,672,561

688,222,430

$100,000 under $200,000

13,851,341

13,815,858

1,340,890,194

$200,000 under $500,000

3,476,747

3,466,132

790,018,422

$500,000 under $1,000,000

577,618

574,638

332,577,165

$1,000,000 under $1,500,000

140,635

139,649

146,685,193

$1,500,000 under $2,000,000

59,460

59,064

88,993,612

$2,000,000 under $5,000,000

86,329

85,673

225,389,176

$5,000,000 under $10,000,000

21,390

21,237

129,065,855

$10,000,000 or more

13,480

13,402

348,239,073

Taxable returns, total

90,660,104

90,625,862

5,487,574,374

$15,000,000,000,000

2011 Figures based on low end

Income
Income based
Taxable
based on low on middle of bracket Income
Taxes
Actual
end of bracket or low end + 40%
Less
per
Tax
whichever is less.
25K ded
bracket
Rate
40.00%

$0
$1
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$40,000
$50,000
$75,000
$100,000
$200,000
$500,000
$1,000,000
$1,500,000
$2,000,000
$5,000,000
$10,000,000

$7,000
$12,500
$17,500
$22,500
$27,500
$35,000
$45,000
$62,500
$87,500
$140,000
$280,000
$700,000
$1,400,000
$2,100,000
$2,800,000
$7,000,000
###

GDP

Page 4

0.0%
0.0%
0.0%
0.0%
0.0%
10.0%
10.0%
11.0%
12.0%
13.0%
14.0%
15.0%
16.0%
17.0%
18.0%
19.0%
20.0%
21.0%
22.0%

$0
$0
$0
$0
$0
$0
$2,500
$10,000
$20,000
$37,500
$62,500
$115,000
$255,000
$675,000
$1,375,000
$2,075,000
$2,775,000
$6,975,000
###

$0
$0
$0
$0
$0
$0
$250
$1,100
$2,400
$3,700
$7,200
$10,950
$26,950
$77,950
$167,950
$262,950
$362,950
$992,950
###

0.00%
$0
1.00%
$2,185,895,250
3.67% $16,009,708,000
6.00% $26,609,095,200
7.40% $71,026,905,700
9.60% $84,452,292,000
### $151,672,183,950
### $93,698,331,650
### $45,025,323,100
### $23,619,648,250
### $15,635,007,000
### $31,333,110,550
### $21,239,200,500
### $28,212,966,000
###
% of GDP
4.071%

Tax Calc
1.00%
Short Fall
What needs to be
done if revenue
is not 15% GDP

Fail
Safe
Effective
Tax Rate

$0
$0
$0
$0
$0
$0
$2,185,895,250
$4,366,284,000
$4,434,849,200
$9,598,230,500
$8,797,113,750
$13,851,341,000
$6,953,494,000
$2,888,090,000
$1,406,350,000
$891,900,000
$1,726,580,000
$1,069,500,000
$1,348,000,000
$59,517,627,700
Exemption for 25K
Wages needed to be

Double Check
Total
Compensation
Income +40%
bracket x all
returns

#DIV/0!
$0
0.00%
$0
0.00%
$0
0.00%
$0
0.00%
$0
0.00%
$0
2.00%
$21,858,952,500
4.67% $145,542,800,000
7.00% $221,742,460,000
8.40% $719,867,287,500
10.60% $733,092,812,500
11.95% $1,592,904,215,000
14.48% $886,570,485,000
16.59% $389,892,150,000
17.80% $193,373,125,000
18.53% $123,379,500,000
19.15% $239,562,975,000
20.86% $149,195,250,000
21.93% $188,383,000,000
###
###
earned
###

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