by James C. Benerofe
If I were President, this is what I would propose as a tax cut.
Anyone with W-2 income of $50,000.00 or less would pay ZERO Federal Income Tax. They would continue to pay Social Security.
They would still file a tax return. If states that have an income tax wished to participate they could offer the same tax cut. This plan would not require any elaborate legislation and would likely create an immediate stimulus to the economy. There would also be written into the legislation a qualification gap so that individuals earning say $51,000.00 would still qualify. Reasonably, the gap would be limited to $5,000.00. After five years, an economic review of how effective this was in stimulating the economy would be undertaken. If it was determined successful, it would be permanent. It might also be considered at that time to apply it to higher income levels (although there should be a limitation on how it should go, perhaps based on the cost of living index).