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Random Quote: I never hold a grudge. Once I get even with the SOB I forget the whole thing.
mpostgate - 4/15/2004 10:00 AM
Taxing income and capital gains is un-American. It also encourages tax cheating and loophole exploitation. The only way to truly share the burden of taxation is to tax consumers when they spend. Everyone buys things, even the drug dealers and cash under the table workers. Let me keep all the money I earn by working and investing, tax me when I spend.
The tax system shouldn't penalize Americans for saving and investing - but it does.
I agree and disagree. Although I tend to like the fairness of the idea, I fear that people would spend less resulting in a slower economy if our government only operated off of sales or use tax. It would definately make people think twice about purchasing big ticket items (ie. getting that new boat/car every few years). I am true believer in the flat income tax. I believe some top economist estimate that it would only have to be 10-13%...
B. I am a CPA and I have to take a liittle exception to your point about the flat tax having to be around 10-13%. Most of the studies that were done during the 90's came to the conclusion that the flat tax would have to be 25 -28% to collect the same revenue for the Federal government as the income/alternative minimum tax(AMT) does currently. We really do have somewhat of a flat tax already in our system, it is called the Alternative Minimum Tax and hit a client of mine right between the eyes today. His taxable income is a negative number but he wrote a check today with his extension for $48,000, wholly due to 26-28% AMT. I do believe the income tax is way too complicated, but the way to fix it would be to take out the social engineering rather than abolishing the income tax. The child credit, earned income credit, etc. are socially motivated complications in the tax rather than revenue considerations. Also, the passive activity rules are a ridiculous section of the Internal Revenue Code that, generally serves no good purpose than to force too many pages to be included in an income tax return. How many of you folks who use Turbo Tax have recalculated your tax using standard deduction compared to forcing itemized deductions? I forced itemized deductions on a number of clients this year instead of taking the standard, one as small as $606, with a reduction in the total tax compared to the standard deduction. Does Tubro Tax ask whether you should do this or not? That is one of the benefits of using a professional, we can think and ask questions that "may" help you pay less tax. Sometimes, we even pay for ourselves with helpful, legal suggestions.
__________________ jal
2009 Crestliner Superhawk 1900
175 Optimax Pro SX
Dodge Ram 2500 HD Cummins Diesel
JA - Yes, Turbo Tax does that also. You list all your deductions and it compares that total against the Std. Deduction,, then applies whichever is greater. I also have done taxes for a number of years and personally liked the pencil and form method, as it required me to think and also keep up with the tax code and exceptions. The first year that I used Turbo, I didn't like it as it basically ask questions and you fill in the blanks. This bothered me, as prior to this I could readily answer any question ref. any number on the return. After the second year, I love it and am convinced that Turbo has thier stuff together. Did I mention also saving at least $300 vs. my CPA doing it?
__________________
2005 McKee 23 TE/FS with 200 Zukes
50 Ton Masters with Towing Endorsement.
I agree and disagree. Although I tend to like the fairness of the idea, I fear that people would spend less resulting in a slower economy if our government only operated off of sales or use tax. It would definately make people think twice about purchasing big ticket items (ie. getting that new boat/car every few years). I am true believer in the flat income tax. I believe some top economist estimate that it would only have to be 10-13%...
I do not belive that this is true. People would still purchase small items, as well as big ticket items. The reason being that you would keep your entire paycheck, not the 55%-75% that you keep now. This would not increase the price of items since all taxes that are accrued before the item reaches the retail level would be completely removed.
It is estimated that 25% of the price of a new home comes in the form of taxes on materials, payroll taxes, current homebuilder tax compliance, etc. Reduce the cost of a new home (not a used home) by 25%, put a national retail sales tax of 23% on it and you realize a 2% savings. Take into account that you take home 100% of your paycheck and a new home becomes much more affordable than it is now.
Now, apply that argument to boats, cars, airplanes, tractors and all other big ticket items and it now begins to make complete sense.
Not to be a wise guy but doesn't France operate on a national sales tax or value added kinda sales tax??? Surely, they can't be a good example
In CT we used to have a sales tax of 6 to 8 % and no income tax. And about a 13% capitol gains and dividends tax. Then we got a millionairre Governor (Weiker) who swore he was against the income tax. Well he put it in at 4.5% and eliminated the cap gains and dividends tax. (Surprise surprise). Then of course the 6% sales tax came back!!!!!!!!!! Yikes!, where did all that new money go!!!! How did we ever live on a tax that only taxed 6% of the stuff you buy (not food) and now have a 4.5 to 6% tax on all income??? That's what is bad aout the income tax - its too easy to change.
I don't have the answers but the flat tax - no exceptions - seems fair to me.
P.S. I got them done just in time and managed to owe them just enough to avoid the penalty! What luck!
__________________ 1st Cav Div Air Assault Infantry RVN
-Can Do........ and .......Carry On -
That is a problem with an income tax. It is very easy to adjust/change b/c the majority of people do not understand the current tax structure so a little change here and a little change there won't make a difference. Whereas a national sales tax is plain and to the point. 23%. If politicians want to change it, they must say that they are going to increase taxes by .5%, 1%, etc. With everyone paying this, most of the time, it won't fly.
I know many people have questions like what about this industry and what about this product. Take a look at this site and it will answer many questions many may have. About the only con that I can see with it is that it will abolish the IRS and some people may lose their jobs. But how many of you will cry at night about that?
An old priest was dying. He sent a message for an IRS agent and his Lawyer
to come to the Rectory. When they arrived, they were ushered up to his
bedroom.
As they entered the room, the priest held out his hands and motioned for
them to sit on each side of the bed. The priest grasped their hands,
sighed contentedly, smiled and stared at the ceiling.
For a time, no one said anything. Both the IRS agent and Lawyer were
touched and flattered that the old priest would ask them to be with him
during his final moment. They were also puzzled because the priest had
never given any indication that he particularly liked either one of them.
Finally, the Lawyer asked, "Father, why did you ask the two of us to
come?" The old guy mustered up some strength, then said weakly, "Jesus
died between two thieves, and that's how I want to go, too."
__________________ 1st Cav Div Air Assault Infantry RVN
-Can Do........ and .......Carry On -
RE: Income Taxes 
1st Cav Div Air Assault Infantry RVN
