Income inequality doesn’t just lead to economic stagnation at a macro level, it leads to social dysfunction at an individual level.
Raise wage from $7.25/hr to $16/hr by 2024
Peg to inflation
Let us be clear, there is no such thing as a “free market” wage. There is no “natural” wage market that operates independent of the decisions we make and the political system we live in. Just to have a wage of any kind, the political system has to create a stable currency, construct and enforce a system of property laws, levy taxes to fund these operations, and enforce contracts. Knowing all this, and taking into account inflation and productivity gains over the last 50 years, the proper wage should be set at $16/hr.
Income Taxes: Labor and Capital Income
Zero federal income tax on first $41,000 a year
Escalating rates the higher it goes
Social Security cap moves up to $250k
New Founder’s Stock design to increase entrepreneurship
No loopholes or deductions
Here are the ideal tax rates we want individuals paying across each category; income, capital and payroll taxes:
Founder’s stock is a new category we want to introduce. As entrepreneurship is the driving force that keeps the economy moving, we want to really reward new business creation. The day you take your company public and sell stock, or decide to sell the company entirely, you will be taxed just 5% on the first $500k of income and only 8.5% on all income after that. Additionally, you are free to use your founders stock to raise money to help grow your business.
Lastly, as only the highest income earners stand to benefit from deductions, and in turn have accountants that help them take advantage of tax loopholes, we will be eliminating them entirely. This includes the mortgage tax deduction, investment interest expense deduction, charitable contribution deduction, state and local tax deductions, and the medical and dental deduction. The last one being offset specifically by our Medicare for All plan.
Age 55+ now eligible for disbursements
Ages 18-24 now eligible for disbursements
We want to drop the initial cut off for disbursements from age 62 down to 55. We are doing this to reduce the number of older workers who feel they can't retire without an income, and start taking care of individuals who have been left out of the workforce for far too long due to (illegal) age discrimination.
We also want to start providing Social Security to young people between the age of 18 and 24. The highest rate of poverty in this country falls on these individuals disproportionately. We want to ensure as people begin their own life journey, that there is money in their pockets. We want to avoid these individuals suffering perpetual debt. There are no work requirements attached to these payments.
Corporate Income Taxes
Increase the corporate income tax rate to 27.5%
24.5% of tax paid with non-voting shares of company stock
3% of tax paid with cash taxes
It was a huge mistake for the Republicans to slash the corporate tax rate, especially when you consider the fact they didn’t cut any major loopholes. We will raise the overall rate back up to a more appropriate level, but we will do it with a twist.
Companies can now pay their tax liability with non-voting shares of stock. Currently, income generated in the U.S. economy goes to either workers or owners of capital, but only the latter's slice is growing. Corporations have exploited weak labor markets, monopoly power, and the collapse of unions to drive down workers' wages, and pocket near-historic profits for themselves. If the government owns a hefty chunk of all the capital assets in the market, then those profits and payouts go to the government rather than to the 1 percent. From there, the government can plow more money into jobs, investment, and income support for ordinary Americans.
Companies could focus on doing business -- making better products or providing better services -- rather than gaming the tax code. This is better for everyone, including all citizens benefiting financially from the growth prospects of all businesses.