10 Tax law changes the new Congress should make immediately

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  • Eliminate personal tax returns for non-business owners. Tax returns are a waste of time and money.
  • Eliminate the “company” half of social security for the self-employed. It’s absurd that hairdressers pay twice the tax rate Warren Buffet pays.
  • Declare that ANY money an employee or former employee makes working for a company is salary.
  • Eliminate incentive stock options. An executive should not be able to take a gain on an investment where they have no chance of taking a loss. This heads I win, tails you lose accounting is absurd.
  • Cap the “salary” a person can make as an employee of a short-term business investment. Any money over that is a percentage of profit. It’s absurd that an “actor” can make $10 million on a movie where investors are taking losses and states and countries are subsidizing the production cost through grants and credits.
  • Eliminate “inventory” accounting for businesses with total assets under $1 million. Small businesses cannot compete when they pay a 48% tax rate on inventory buildup and major corporations basically pay nothing. If a small business buys something for business, it’s deductible. Period.
  • Change the earned income credit to monthly payments from a lump sum. People need money monthly, not in a huge check that H&R Block cab get a chunk of.
  • Eliminate all non-FASB accounting. That would include corporate proforma’s and Hollywood’s infamous “cheat the bank” accounting that allows them to steal intellectual property.
  • Set the top tax bracket at 20% and leave it there.
  • Declare that all family foundations must spend all their assets to zero within ten years of the death of the grantor. Any money not spent goes to the government as unpaid estate tax. Also, declare that all stock transfers into foundations must be liquidated within 2 years of the grant. This would NOT include property donated to charities such as Universities or Churches. Donations to these entities would stay as they are.

The tax code today was written to appease billionaires and milk the middle class. We finally have a President with cojones. We may never have this chance again.

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