7%of 1st $150,000 of Adjusted Gross Income to Social Security or private retirement account.
NO income tax on the 1st $150,000 of Adjusted Gross Income
Flattax on AGI over $150,000 ($300,000 for a married couple)
7%capital gains & net business tax 1. Everyone would invest 7% of the 1st. $150,000 of AGI into their special "Tax Eliminating Retirement Account", (TERA) or contribute to Social Security. Employers pay into Social Security to maintain present and future Social Security benefits.
NOTE: "Stay at home moms" would also have an account, equal in value to her husband's.
2. At retirement, the assets in the TERA account will pay interest only payments each month. (Estimated value for a "median household income" account after investing for 45 years would be greater than $1,500,000) The principal and capital gains are never spent and are left in the account until death.
3. After death (of both husband and wife) the assets in both accounts are converted to cash and paid to the State by the couple's estate.
After 50 years, with all Americans participating, this concept could generate more income to the U.S. Treasury than the present Individual Income Tax system. The "Tax" would not be collected until the death of both husband and wife, leaving both retirement accounts for the use of the surviving spouse.
How would this concept be phased in and what effect would it have on revenue going to the U.S. Treasury?
1. Individuals would pay into their "revocable" TERA allocated to the State in which they live. There could be multiple States in a person’s retirement account. The assets in each State account, after the death of both husband and wife, would be used to lower State Income Tax rates to ZERO. A percentage based on the population of the State would be paid to the U. S. Treasury. Only constitutionally enumerated programs will be funded by the States. Money left in the State accounts could go to fund Medicaid/Medicare health care insurance and reduce owner occupied residential property taxes.
2. Americans would be allowed to opt out of the retirement part of Social Security. (Disability and aid to dependant children would still be provided) The individual's half of the employment tax would go to their self directed retirement account. Employers would contribute 7% to "Stay at home moms" if the wife is staying home to take care of their children.
3. Income above $150,000 AGI would be taxed at a rate that would generate a revenue neutral tax base
4. As the TERA's replace taxes on income, the tax rates can be reduced to ZERO 5. Social Security retirement benefits would be pro-rated by a ratio of years payments were paid into the Social Security system vs. payments into retirement accounts with a guarantee that combined retirement income will be no less than Social Security retirement.
6. Because all individuals will have a retirement account, married retirees will have the benefit of two retirement incomes. (Estimated median retirement income for a couple would be $7,000 per month) This income will be generated by retirees converting some of their working year’s investments from the stock market to mortgage backed securities which will finance the homes of young people. The income will NOT be taken away when one spouse dies, it will continue until the death of BOTH husband and wife.
7. The savings accounts are revocable to insure that congress will only use the money for constitutional items. If congress does not spend the money on constitutional items the money will revert back to the trustee and will go to charity.
With 20%-40% more money to spend every year, families in the year 2050+ will be stronger, more united and able to provide for themselves.
It is an education program.
Saving for college will be easier with more spendable income.
It is a Health Care program.
Families will have more money to pay for health insurance. Retirees will be able to pay for catastrophic and/or long-term care insurance.
It is a program for women.
Married women will be more secure because they will be saving for retirement even if they do not work.
If they want to work, lower business costs will mean more jobs for women.
It is a minimum wage program.
Reducing the Employment Tax burden on corporations and business will allow them to pay a higher minimum wage.
It is an investment program.
Because individuals will be buying no-load mutual funds, there will be more money available for business.
It is an anti terrorism program.
More money going to the U.S. Treasury means the government will have more money to help protect America from those that are trying to destroy our way of life.
It is a program that will lower the cost of living.
Lower business cost means lower prices to the consumer.
It is a program that will help business.
If people do not have to pay income taxes or employment taxes they will have more money to spend on consumer items. Employer "matching" will give employees more IRA savings and Employers/Corporations have less taxes to pay resulting in more profit.
It is a tax increase program without a tax increase.
The actual tax (if you want to call it a tax) is only 7% each year, and is not collected during a personís lifetime. Therefore over time, the confiscation of your income every month will end and in its place will be a tax that you will never see. (Wow!! What a concept!)
It is a balance of trade program.
Lowering the cost of business by reducing taxes on profits will allow U.S. business to sell goods and services to other nations at a lower price. Lower cost means higher demand for U.S. goods. We will then start to export more than we import, which will help the balance of payments and help our economy.
It is a program that will help Politicians get elected.
After people read and understand the benefits of this concept there will be a vast movement to raise money for Politicians that will support this idea. If you are interested in helping to promote this concept, please e-mail me! Let's see what "We The People" can do!
I AM FREE Individual Americans For Real Economic Equality
I am a concerned taxpayer, like you, and want to improve our tax system. This web site, NoTaxUntilDeath.com is promoting a tax concept that will replace our present system and it will also create an even greater tax base going into the U.S. Treasury. We as Americans will enjoy a more comfortable life because we will get to use the money we have earned during our employment years for ourselves not for the government. Governments can live forever, but you and I will not. So during the short time that we have on this earth let us live and work to support our families. We can provide for their education and health care, buy a home, start a business, save for our retirement, and live the good life. Then, after we have had the benefit of all of the money we have earned during our life time, not just 50% of it, the Government can receive the money it needs to continue the American dream!
Please read this concept very closely and see for yourself the benefits it could bring to you and your family. Maybe you have had an idea along these lines. Get in touch with us, we would like to hear from anyone who has a contribution to further this idea along.
We need a grassroots effort to affect a significant change in our current tax system. This web site is our effort to start the ball rolling.
A lot of research was done on tax collection statistics, demographics of our population, etc. If you have questions regarding the data used in my graphs and charts, please send an email. My goal is to enlighten as many people as possible to this concept, expand it, refine it, and get it to our congressmen and the nation. I believe the way to get this concept made into law is to raise money that will be used to support political campaigns of politicians who will support this concept.
Living life on your dollar . . . Not your neighbor's
Main Contact: Don Lloyd, Concept Author The contents of the NoTaxUntilDeath.com web site is protected by applicable copyright laws. No permission is granted to copy or distribute any text or graphics without permission from Donald W. Lloyd.
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