Taxes

Problem

We are taxing the poor and giving handouts to the rich. If the top 10% of earners are making 90% of the money, I can not understand why the bottom 90% can't get their act together and make those top 10% pay.

Solution

• Flat Tax: Money is either spent on 'needs' or 'wants'. The money spent on 'needs' (food, clothing, shelter) should not be taxed, while all other money should be. What exactly can be considered a 'need' can be hotly debated, but in the end there is a total dollar amount that should be left untaxed. Amounts above this magic number are taxed. I suggest taxation on any monies made above $40K/year. Anyone making less than this amount does not even have to fill in a tax form. The concept of tax deductions can be used to vary this amount based on individual circumstances (dependents, rent, spouse income, etc.).
• Tax capital gains at 100%: The current 50% capital tax rate is an obvious donation to the rich, and I completely reject the lousy excuse that it exists to promote risky investment. The LAST thing we want is unsubstantiated speculation in our markets. Furthermore, losses can be used to write off gains, effectively providing a safety net against risk.
• Remove Government sponsored "Savings Plans": Here is an example of donations to the upper-middle class. Each "Savings Plan" (RRSP, RESP, etc) is no better than a charitable donation to the well-off. Now I understand that most of you reading this probably take advantage of "Savings Plans". But I ask you to consider the alternatives: All the income governments loose to "Savings Plans" can go directly to your pocket instead or, more humanely, to a retirement fund for all citizens.
• Inheritence=Income: One way to guarantee that wealth does NOT spread to the lower classes is to make sure it stays locked up in wealthy families by keeping inheritance taxes low. The gains of your forbears should not be blessed upon you, but rather you should earn you own way. Inheritance is unearned income and should be taxed as income. The taxing of inheritance prevents large accumulations of wealth that are subsequently used to speculate on investments instead of being used to promote real production.