Tuesday, April 17, 2012

The MSL and Object Tax

The Object Tax is a product of the same thought process as The Medical Savings and Loan.

Currently, the funding for health care is built around our employers. People are in health care groups chosen by their employer. Changing employers disrupts your health care.

The tax system is built around the employer as well. For most of us, the actual taxes are paid by our employers. We file a return and get some money back based on our individual experience.

The object tax makes the individual (and the nuclear family of the individual) the center of the tax universe.

In this tax system, people would have their entire paycheck deposited into a bank account with no taxes removed. The tax is collected when you go to withdraw money from this pre-tax bank account.

My personal observation in life is that the structure of society tends to follow the flow of money. The tax withholding system has money flowing from the employer to the government with a trickle of cash flowing back the individual.

The Object Tax flips this around. In the new system, the money flows from the employer, through the worker to the government.

Changing the flow of money would dramatically improve the status and influence of the worker.

Trivia: The current tax withholding system was designed by a Conservative named Milton Friedman?

I diligently file my taxes every year. The odd thing that I've noticed is that this complex process really doesn't provide me with a lot of information. I have a box of scrappy paper and piles of complex forms about the taxes withheld by others. The process does not provide me with a great deal of information about myself.

The Object Tax, on the other hand, provides individuals with a wealth of information about themselves, their income, possessions and spending habits.

Like the Medical Savings and Loan, the Object Tax would be a wonderful presentation on how we can achieve a restoration of America and the concept of self rule. All that is needed is a group of patriots who want to talk about restoring America. It involves a person contacting me.

SUMMARY: The object tax taxes an abstract object between income and consumption. In most cases the abstract object is a bank account. The tax could apply to other financial objects such as a house, a stack of gold coins, etc..

By taxing an abstract object between income and consumption, we can create a tax that combines the best of a progressive income tax and a consumption tax with a minimal amount of disruption. The object tax could be designed to encapsulate the current tax code allowing people to transition to the new system at their pace.

The tax replaces the capital gains tax, but satisfies the Buffett Rule.

Imagine a tax system in which you get your entire paycheck deposited into a savings account. When you go to withdraw money, the program would look up your personal tax rate. You would pay the tax when you withdrew the money. If you had $10,000 in your account and your tax rate was 25%. If you took $1,000 from the account, you would pay $250 in tax and get $750 in your pocket.

This tax reform would be incredibly easy to implement and would empower the people.

All that is needed is a group that is willing to talk to me. I live in Utah. I am not LDS. I am an American who loves the Founding Fathers and the American experiment in self rule.

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