In honor of tax day I am proposing my own tax code.  It is obvious to everyone who’s paying attention that anybody, including your average third grader, could come up with a tax code that makes more sense than our current code.  As a result, this is an open thread for all new tax suggestions with the following parameters: it must fit on a cocktail napkin, assume all current taxes have been abolished and we’re starting fresh, and have no concern whatsoever for revenue neutrality.  Here’s mine:

Everyone pays 15% up to \$150,000; all income above \$150,000 is taxed at 25%; one deduction for poverty income of \$25,000; income is defined as all money you receive from whatever source (capital gains, inheritance, etc. is all regular income); corporations are taxed as individuals

The median family income in my state (TN) for a household of four is \$64,615.  The tax paid by that family would be \$5,942.25 for an effective rate of 9.2% or \$495.19 a month.  The calculation took me under a minute: \$64,615 – \$25,000 = \$39,615 x 15% = \$5,942.25.  Withholding of 15% would total \$9,692.25 which would result in a tax refund of \$3,750.

A millionaire would pay \$231,250 for an effective rate of 23.12%.  \$150,000 – \$25,000 = \$125,000 x 15% = \$18,750; \$850,000 x 25% = \$212,500 + 18,750 = \$231,250.

What kind of tax would you impose?