Thanks for the comment!
My original inspiration was simple reduction in duplicative activities, such as collection of income taxes. The federal tax code OBVIOUSLY exceeds Constitutional authority in the way it favors one tax payer over another due to personal spending habits, etc. I’m not proposing a “flat tax” or implementation of the much-discussed “fair tax.” I’m just saying that the tax collection process has become too corrupt and too expensive. Those problems get worse when we pile on un-Constitutional activities and stupid spending at the federal level. The 10th Amendment sought to handle that, but politicians ignore it as they build their Washington power base at the expense of the citizen.

Thanks for the comment.

If you think I’m out to eliminate the federal government, you read someone else’s article. In my step 2, I specifically say there should be a wall-to-wall audit to confirm that Constitutional mandates are being met and that un-Constitutional functions are transferred to the states so that states can decide what to do with them. Although I would continue programs like Medicare and Social Security, I suggest moving administration of those programs to the state level with built-in portability features. There would still need to be a federal office to oversee administration, but I’d put the actual service delivery organizations at the state level where citizens can keep a better watch on them.

My plan does not call for the elimination of any tax except the federal income tax. States would be free to tax their citizens in any way they choose as long as they contribute the state’s fair share to the federal budget and the federal government would be free to continue collecting other taxes as appropriate. I would envision that the individual would see their state tax bill multiply by a factor of 3 or 4 when their federal income tax goes to $0. The net amount each taxpayer pays might not go down initially, but they would only need to file one return and the cost at the federal level would be eliminated.
I was asked if all the millionaires might establish residence in states with the lowest state income tax rates. They could do this, but having more millionaires in a state would raise the amount the state would have to contribute to the federal budget, therefore the states would need to adjust their rates to near what other states are charging anyway.

My plan calls for tax savings through elmination of un-Constitutional spending, transfer of programs to state control, and a reduction in wasteful spending. Taxes should certainly be collected sufficiently to cover proper government expedictures.

Thanks for reading my plan!

In my step 1, each state would determine the details of how their citizens are taxed, e.g. whether or not they have a mortgage interest deduction, what their tax brackets/marginal rates would be, etc. How much each state contributes to the federal government could be based on the size of each state’s economy relative to other states, or some other method deemed fair among the states.

I didn’t address the question of the federal government collecting taxes only to redistribute that money back to the states. However, that would be at least reduced by implementing step 2, transferring many federal programs to state control, thus removing the need for the federal government to collect taxes for those programs from the start.

My plan eliminates social engineering and the influence of special interests, or at least reduces it, by placing tax policy at the state level where it is more visable to taxpayers. Not a perfect solution, but better than having politicians in far-away Washington adding tax riders onto bills that on the surface have nothing to do with taxes.
,