Saving the American Dream

SECTION TWO: Greater Wealth through Effective Federal Taxation Restructuring and Universal Health Care Based on Free market Principles and Capitalism II. Restructuring Individual Taxation To make an immediate impact on overly strained finances of average Americans, an immediate suspension of tax obligation for individuals earning less than fifty thousand dollars a year individually and for families earning one hundred thousands dollars or less combined. The numbers of individuals within these current tax ranges have minimal liability to none at all. Individuals and families would be better able to determine where their money is spent or saved based on their individual need. Instituting a transitional tax for those that would exceed either of the exemption status classes creates a safety net for individuals beginning to realize greater individual wealth. For an individual that makes $50,001 to $62,500 a year end tax liability of 10% and for those that earned $62,5001 to $75,000 a 20% liability. The application of the single income principle carries over to combined income earning families. A combined income of $100,001 to $125,000 would fall within the 10% liability status and the combined income of $125,001 to $150,000 would fall within the 20% liability status. After passing these limits traditional tax obligation would remain unaffected. The focus on these levels of income would reach the majority of Americans in a direct, immediate and meaningful way. Summary: The greatest benefit of this proactive approach is not only short-term benefit but also the long-term effects based on a solid foundation that will extend well beyond momentary difficulties to stabilize future aspirations. The secondary effect would be to allow a short-term influx of already existing capital for reinvestment by the individual into areas of his or her-own discretion over a longer period-of-time. The long-term effect would be more profound than a government generated stimulus check that would require future tax liability of the current generation and its successors. The stimulus checks and minor reduction in tax liability or creation of credits are far too limited and are reactive in nature. The reactive nature of these measures can only have minimal effect on short-term concerns while creating even greater difficulties long-range due to the nature of re-activism. A solid foundation for immediate, short-term, mid-range and long-term change are achievable if the policy and legislative changes are proactive. The immediacy of this change is the most effective means to returning the confidence to the people that are suffering under the faltering economy and crisis, while also setting the means to achieving other stated goals of the government while maintaining the economic viability of the people. The purpose of taxation is to achieve societal needs of the individual within the collective social structure. When the people become impoverished or less able to meet the needs of their lives by or because of the tax levied then the tax should not exist. The taxation of the individual must never be detrimental to the individual or the society as a whole in its application. The principle of the individual tax obligation is to make the individual the end purpose, and that purpose is the betterment and possibility of elevating the personal living conditions of the individual by and through financial means, as well as protecting their lives through such means as affordable and adequate health care.