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The Proposal: 100k Individual Earned Sustenance Tāx Exemption Made Permanent

 

Revolting is one thing, but having some idea of solutions is what we hope to accomplish.

100k individual Earned Sustenance Exemption made permanent. What you earn for your own sustenance cannot be taken from you by any government entity. Self-care comes first!

By exempting the first $100,000 of income from taxation, this policy would eliminate the tax burden on individuals whose income is primarily used for personal sustenance. For those earning above $100,000, only the income exceeding this threshold would be taxed.

If individuals have more disposable income due to this exemption, it would lead to increased consumer spending and stimulate economic activity. This might indirectly boost government revenue through increased sales tax, VAT, or other consumption-based taxes, as well as through higher income from business taxes due to increased economic activity.

Over time, if this exemption encourages more people to enter the workforce or work more hours due to the tax-free status of their earnings, it could lead to a broader tax base.

This exemption could be seen as making the tax system more progressive, as it would disproportionately benefit those with lower incomes relative to their total earnings. Higher earners would still pay taxes on income above this threshold

While the exemption itself isn’t a direct wealth redistribution mechanism, by eliminating the tax burden on lower earners, it might indirectly contribute to reducing wealth concentration at the top.

If more individuals spend more due to increased disposable income, it would stimulate local economies, benefiting small businesses and creating more jobs.

By ensuring that the first $100,000 earned is not taxed, there might be an incentive for individuals to work more or seek employment, which could lead to a more dynamic labor market. Thus reducing unemployment.

The 100k Earned Sustenance Exemption would contribute to reducing income inequality by lowering the tax burden on those earning up to this amount. Its effectiveness in promoting overall economic equality would depend on broader fiscal policy, how it’s implemented, and its interaction with other tax laws and economic policies.

In summary, while the 100k Earned Sustenance Exemption would reduce government revenue from personal income taxes in the short term, the overall impact would depend on economic responses, adjustments in other tax policies, and long-term economic growth stimulated by increased disposable income.

Making this exemption permanent for stability and predictability would allow individuals to plan their financial lives without the worry of fundamental income being taxed away. This is somewhat akin to the permanent nature of certain tax exemptions for organizations serving the public good.

This exemption would directly benefit individuals whose annual income is up to $100,000, as their entire income would be tax-free. This group would see a significant increase in their disposable income, which could be pivotal for those living paycheck to paycheck or striving to improve their financial stability.

While the exemption is uniform, in areas with a high cost of living, even earning up to $100,000 might not place someone in the upper echelons of income. Here, the exemption would be particularly advantageous as it would help cover the higher costs associated with housing, food, and other necessities.

Single individuals or single-income households earning less than or close to $100,000 would benefit the most.

However, new entrants to the workforce who are starting their careers with salaries below or around $100,000 would benefit from this exemption by keeping their entire earnings, which could encourage savings, investment in education, or personal development, aiding in their economic mobility.

Retirees who might take on part-time work or have low-income jobs to supplement their retirement funds would find this exemption particularly beneficial. It would ensure that their additional income is not taxed, thereby increasing their financial security in retirement.

This policy aims to ensure that the basic income necessary for survival is not taxed, thus providing a foundation for economic equality by disproportionately benefiting those at the lower end of the income spectrum.

This exemption would provide significant relief to lower and middle-income earners, and higher earners would also benefit from not paying taxes on the first $100,000, though this benefit would be less impactful relative to their total income.