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all compensations are taxable in excess of $ 40,000 for individuals, $60,000 for families or individuals with dependents. individuals are subject to 10% tax stating from $0 to cover medicare and medicaid up till the limit based on current standards. after the excess deductible, all compensation will be taxed at 25% in excess of such applicable excess deductible. the EITC will be eliminated. there will be no deductions or exemptions for individuals.
all businesses get the $60,000 deductible. they may deduct the actual cost of labor and raw materials used in their business. they may also deduct all compensations paid to employees for benefits. they may not deduct the 10% matching contribution for social security and medicare. all income from business will also be taxed at 25% for income over the deductible.
then you re-prioritize the budget using percent of revenues instead of hard numbers (as we currently do) - when you run out of budgets, you're done until the next month. of course, 2% of revenue is automatically held "off the top" as a reserve fund.
Last edited by bonehead; 18th March 2017 at 06:35 AM.
Very simplistic view of how things really work. Trump has taught you well. It doesn't work at the state level for a bunch of reasons not the least of which is that states like Ca. with a young population as opposed to say Florida with an aged population have very different needs and so in this example, Ca would have lots of healthy folks who don't drain the piggy bank nearly as much and as fast as Florida would. But, a national system would even things out because of sheer numbers. As far as these proposed block grants to the states for instance, what will happen is a fixed budget or allowance would be doled out and unlike medicaid, there would be no expansion of services due to cost over runs or changing demographics. One size fits all and when the shortfalls begin to appear, the fed can simply blame the governors for mismanagement etc. taking the heat off of the Trump people. They look upon this as a benefit of this drastically uneven and unfair bill. We all know Trump will do or say anything to shift the blame away from himself. State administered healthcare with strict limits on benefits and no real price controls is a recipe for failure and would be the Death Panels that the GOP likes to label ACA as.
This is a perverse attitude, inculcated by almost 100 years of propaganda. There is no objective measurement on which middle class people are better off if the poor are "punished" more.
The fact is, universal care would significantly reverse the trend towards income inequality. If it is not adopted, YOU are likely to become one of the "despicable poor", because the middle class will disappear.