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Taxes

We should restructure and simplify our tax systems so everyone pays some tax, income from work and capital is treated equally and fairly in a progressive tax system that fully meets our revenue needs, while reversing the tax supported redistribution of wealth.

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Taxes

Hi, I’m Walter Hofheinz. I’m running for U.S. Representative for the 32nd District of Texas.

Our income tax system is overly complex. It is impossible for all but trained tax professionals to understand. In addition, over the past 20 years, tax policy has increasingly been skewed toward valuing capital more than labor, and shifting wealth from the lower and middle classes to the wealthy.

In order to remedy these problems, the Internal Revenue Code should be simplified and made neutral regarding choices of economic activity. Income derived from capital and labor should be treated identically. Rates should be progressive, since those with more income benefit more from our society. Everyone should pay some taxes.

Why should income generated by having money be subject to less tax than income generated by work? Both are essential. I would work to abolish the capital gains rate and special rate applicable to dividends.

All individual deductions and credits should be eliminated (except perhaps the charitable deduction). Substantially reduced rates could then be applied to gross income, ranging from 5% to 35%.

Businesses doing business in the United States should be taxed identically to individuals, but with taxes based on gross income originating in the U.S., less the cost of producing that income. The only additional deduction should be for dividends or similar distributions paid to U.S. citizens, since that income would be taxed at the individual level—eliminating the so called "double taxation" of corporate earnings.

The estate tax, while generating a relatively small amount of revenue, is a tax imposed so we don't have strong consolidation of wealth over time. We should have policies that allow everyone to start on as nearly an even playing field as possible. There will still be disparities of birth, education, and social capital, but not vast chasms of wealth. I am in favor of a lower amount exempt from estate taxes — enough to raise children and see them through college — with steeply progressive rates applicable over that amount.

We’re on the wrong path. It is time to stop and set out for the right path, a path of principled use of government for the public good rather than the good of the few.

I’m Walter Hofheinz. I’m running for the 32nd Congressional District of Texas.

I ask that you join me in working to create more opportunity, a better, more secure quality of life, and a fairer and more just society for us and those who come after us. Please visit my website and sign up for emails, follow on Facebook, and ask others to work with us.