If you are living in a house and it triples in value how much tax do you have to pay? $0 unless you sell it and not buy a new house. My last two houses triples and I've not paid a penny yet. I won't live long enough for this one to do that.
If we are rewrite the tax code that can be fixed.
What we have is far from normal. While not a true flat tax with some graduations a lot of crap can be cut out and plain eliminated. Joe Sixpack should not pay more than Ricky Rich.
So by rewriting the tax code it is a penalty for the working poor? You are making claims on a blank sheet of paper, not a proposed tax. I thought you smarter than that.
Make that claim when you see a thought out draft of the proposal.
And even that wouldn?t be enough.
Nope, a VAT applies to sales, not income.
But the OP utterly mangled his story by including import tariffs too.
You claim that the current tax code is so bad, it "must be tossed".
Too high? Too complex? Unfair?
Surely you can't think taxes are too high? They've been lowered way down into incredible deficit land already.
Somehow, all these years I've been paying my taxes not noticing a problem. With the advent of computer assisted filing, it's pretty easy. Back when I kept paper files and mailed in my return it wasn't that hard either.
Fairness is a goal that can never be achieved. Trying to be fair is one of the reasons our tax code is so complex.
Nope.
Nope.
Just not feasible.
No thanks, some stuff isnt income tho it looks like it is.
There are always a mixture of taxes.
Irrelevant to whether a flat rate income tax is viable. It isnt.
Not everyone does, most obviously with those who grow their own food and don?t own the land they grow it on, have someone who lets them use their land for that and lives like the amish, not using any technology.
Not everyone either owns or rents.
Not everyone consumes what has excuse taxes.
Not everyone pays to communicate.
Ditto.
That?s wrong with your stupid flat tax with no loopholes and no deductions. The increase in value would be income in the year it happens.
That the current system, not the proposed new flat rate system.
Not with the flat rate scheme with no loopholes and no deductions, that is income in the year it occurs.
Its how the entire modern first and second world does income tax.
That?s changing the current income tax system, not a flat tax.
Those on very high professional incomes shouldn?t be paying far less than they currently do and Joe Sixpack who is currently paying no federal income tax shouldn?t be paying 30% of his current income in tax.
And those who inherit substantial property or businesses should have to sell those to pay the 30% tax in the year they inherit.
Not just the working poor, the bottom HALF of taxpayers who currently pay no federal income tax.
And we aren't discussing rewriting the tax code, we are discussing a FLAT RATE INCOME TAX.
Nope, pointing out the problems and gross inequities with the proposed flat rate income tax.
That?s dishonest.
We are discussing a particular very poorly thought out proposal, a flat rate income tax.
Yes, the current tax regime can be tweaked or even discarded completely, but it makes no sense at all to replace the current income tax regime with a very simple flat rate income tax with no deductions or exceptions on what is income or even with a flat rate scheme with lots of deductions and exceptions either.
A progressive income tax scheme with sensible deductions and exceptions is a lot fairer and more equitable.
But it makes no sense for HALF the taxpayers to pay no federal income tax. No one else world wide has such a terminally stupid approach to income tax.
We in order to initiate that you have to rewrite the code. Essentially toss it and start over
Total fairness, no. Should Trump, or someone like him, only pay $750? Too high? For some, others too low Too complex? Why do some people need accountants and tax lawyers? Unfair? For some, yes.
I have no complaints about the tax I pay and like you, easy to file. My friend though, pays $5000 a year for an accountant.
Yes, and it would be completely stupid, and completely inequitable to rewrite the tax code to have a flat rate inco9me tax with no deductions and no exceptions.
And it would be completely stupid and completely inequitable to dump the entire tax code and have a flat tax code with no exceptions and no deductions just to allow taxpayers to have a much simpler tax return.
A huge part of that problem is that politicians want a complex tax code. The Democrats especially love the idea of a fictional high tax rate, then they give one tax break after another, doling them out as the campaign dollars role in. If we had a simple tax system, with a reasonable rate, maybe two brackets, 15%, 25%, politicians of both parties couldn't be using their power to give breaks in exchange for $$$.
It's bad enough that the SSI deductions are capped.
I'm not seeing a downside.
Sales and VAT taxes are inherently regressive.
I grumble to myself some rainy Sunday afternoon when I'm doing the paperwork. I throw the envelopes into the mailbox on Monday and it's all behind me.
True, but the tax forms do need work. I'm a programmer and spend my days working through some complex segments of code. My tax return is very uncomplicated but as I try to walk through the instructions on what to do with the entry on line 18a I find myself wondering what f****ng moron wrote the worksheet.
Actually I could streamline the process and either go for the maximum liability or the minimum deduction because that's where I'll wind up after going through the 18 step calculation.
Corse they would with what is deductable.
Some more than others. The sin taxes probably more than others. Gas tax? If you drive a car you use the roads no matter your income. A few states even tax groceries.
States that tax groceries (rate if not fully taxed): Alabama, Arkansas (3%), Hawaii, Idaho, Illinois (1%), Kansas, Mississippi, Missouri (1.225%), Oklahoma, South Dakota, Tennessee (5.5%), Utah (1.75%), Virginia (1.5% + 1% local option tax), and West Virginia (5%).
And a universal flat rate income tax with no exceptions and no deductions is that in spades.
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