The greatest injustice to the poor in the United States is the regressive tax system. The poor and middle class pay FAR HIGHER portions of their income as tax than do the rich. The payroll tax is the biggest offender here, closely followed by the 17,000 pages of special loopholes for rich people in the Federal Tax Code.

What I have proposed for years is a FAIR & PROGRESSIVE income tax to replace the current jerry-rigged cow pie.

Here is how it would work.

1. Social Security Tax (both that part paid by employer & that part paid by employee) is abolished completely. This also includes the Self Employment Tax, etc.

2. The Social Security System would be funded out of the standard income tax described below.

3. A truly progressive tax system would involve THREE rates:
3.1 15% of the first $50,000 of taxable income
3.2 25% of the next $100,000 of taxable income
3.3 35% of the all taxable income over $150,000

4. This tax would apply to ALL income, from whatever source derived. It would include interest, dividends, etc. There would be NO exceptions, no depletion allotments, etc.

5. The standard individual deduction would be put at $10,000 per person. This would mean that the family of 4 making $40,000 per year would pay ZERO.

6. Deductions for medical (including dental) expenses, educational expenses, charities, and interest payments would be the ONLY deductions, period.

7. The corporate income tax would be abolished, ending both double taxation and corporate fudging to minimize tax liabilities. All corporations, LLCs, LLP, etc would be FORBIDDEN to retain earnings, but must remit ALL earnings as dividends to stockholders. This ends the inflated earnings crap. It is impossible to produce high dividends year after year without corresponding REAL income. The loss of corporate taxes would be more than made up for by the elimination of loopholes for rich guys.

7. ALL loopholes would be gone. No tax credits for solar energy, dog food, exports, imports, fairies, elves, along with all the rest of the crap. The ENTIRE income tax code would be limited to ten pages, 80 columns, 60 lines per page. There will be no place to hide special treatment for anybody.

8. Depending upon need, the 15% bottom rate could be increased and decrease, with corresponding changes to all other rates; in other words, the rates might be 16%, 26%, 36% or 14%, 24%, 34%, etc.

This tax program would abolish the deficit overnight by taxing the rich.

You might argue that the poor collectively make more income than the rich, but that is simply false. The top 10% make far more than the lower 90%, so let them PAY MORE. Even so, the maximum rate of 35% would be FAR from confiscatory.

In addition, depletion taxes would be imposed for NON-RENEWABLE resources (the OPPOSITE of current policies). For example, gasoline taxes would be a given PERCENT of the pump price, NOT a fixed AMOUNT per gallon, just like other sales taxes.

IMHO, this would be a FAIR and practical tax system that the USA could live with permanently (with adjustment of rates as specified in #8 above.