INDIVIDUAL INVESTMENT ACCOUNT (incomplete -basic outline)
Every person and privately held corporation is allowed an Individual Investment Account (IIA) that may be used to accumulate capital and defer taxes. There are no time limits or maximum amount. Personal income placed in an IIA is deferred from tax until it is removed. It then becomes personal income subject to taxation.
An IIA is distinct and separate from the account holder and is taxed as an individual on the earnings from the IIA at the tax rate for those earnings. There is no connection to the account holders tax rate. An individual in a 60% tax bracket on personal income, plus $10,000 in earnings from an IIA would only pay the tax rate on $10,000 for earnings from the IIA. The maximum tax rate on earnings from an IIA would be capped at 50%.
This program has obvious benefits for those with higher income, but it can also be used as a mechanism for furthering state/people’s goals. Such as, withdrawal from an IIA for post-secondary education or for down payments for first time home buyers would be tax exempt or reduced. It would serve as a self-administered retirement savings plan and an income transfer mechanism between spouses or family.
Making contributions to an IIA would be free and easy. Withdrawals would be very inconvenient, time consuming, with fees, charges and a Social Services Account (see Social Services) contribution.
10% of each contribution to an individual’s investment account will be credited as a donation to the Social Services Account (see Social Services), the balance becomes part of an individual’s investment account.
Speculation, profiteering and carpet bagging to be criminalized
Not permitted