Tax rate

[ARay11]

I think this question got lost in another thread and rather than hijack a thread... I thought I would start it here....

What does everyone view as a proper federal income tax rate? Percentage based, Alternative Minimum Tax, with or without deductions, based on income or flat tax?

Very interested to hear from BOTH sides as I hold onto faith that everyone can have a good idea once in a while.

[Franco]

If we were able to restraint the government from wasting the tax payer's money we wouldn't have to pay a Federal Income Tax! The government could raise more than enough money to operate, keep citizens safe, protect The Constitution and other buisness with the money generated by royalties and business taxes. Even if we lowered buisness taxes to be competitve with the rest of the world, we would have more than enough to operate with.

That won't happen because the Dems and Repubs love big government, just different flavors of it!

If we are to pay taxes, the only fair solution is a flat tax for everyone! Somewhere around 2% of income and a balanced Budget Amendment to go with it. The more we pay in taxes, the more money that will be wasted by politicians.

[mngundog]

I think this question got lost in another thread and rather than hijack a thread... I thought I would start it here....

What does everyone view as a proper federal income tax rate? Percentage based, Alternative Minimum Tax, with or without deductions, based on income or flat tax?

Very interested to hear from BOTH sides as I hold onto faith that everyone can have a good idea once in a while.

Just about impossible to answer because of deductions. When ones income is say one million and they are opportunities to take $500,000 in deductions the middle class are not entitled to it makes the flat rate extremely slanted, same goes to low end who get by with paying next to nothing in income taxes.

[Franco]

Just about impossible to answer because of deductions. When ones income is say one million and they are opportunities to take $500,000 in deductions the middle class are not entitled to it makes the flat rate extremely slanted, same goes to low end who get by with paying next to nothing in income taxes.

Then, just eliminate all deductions!

[hotel4dogs]

consumption tax. Those who use the most, pay the most. No deductions. No tax on food and drugs (tightly defined as to what constitutes "food" and "drugs").
In the current system...no one should get money back that they didn't pay in. Giving "credits" to people who don't pay taxes is ludicrous.
What really burns me is the capital gains taxes. If I invest post-tax dollars in something, and it does well, I am taxed again.
I want to know the names of the 4 people I am supporting with my taxes so I can claim them as dependents.

[LokiMeister]

What really burns me is the capital gains taxes. If I invest post-tax dollars in something, and it does well, I am taxed again.

You are not taxed on the original principle invested, only the profit. Any loss is taken off your AGI, adjusted gross income.

[luvmylabs23139]

You are not taxed on the original principle invested, only the profit. Any loss is taken off your AGI, adjusted gross income.

That is not true. If I earn a paycheck and then invest part of it I already paid income taxes on the money.

[LokiMeister]

Flat tax with an exemption is the best way. A national sales tax takes too much money out of the pockets of the disadvantaged.

[LokiMeister]

That is not true. If I earn a paycheck and then invest part of it I already paid income taxes on the money.

Yes, you have paid taxes on that pay check but put $100 of that paycheck in an interest bearing account at a bank and earn $2 in interest. The Bank will give you a 1099 form (the income tax form) for $2, NOT $102.

[hotel4dogs]

I know that. And I don't think any gain I make on my investments should be taxed. My income is already taxed. My real estate is taxed. My business is taxed. My utilities are taxed. My gasoline is taxed. I pay sales taxes (almost 10%) on just about everything I buy. I am being taxed to death.
Here's another way in which capital gains taxes are unfair, IMO.
Let's say I build a very successful business from the ground up through many years of hard labor, working 80 hours a week. Not that far fetched for small business owners to put in that many hours, or more.
Now I go to sell the business, and I have to pay capital gains tax on every penny I get for the business. The amount I owe the government is staggering.
Why did I bother to work all those hours? Why didn't I just sit back and suck off the system? When I figure out what I made hourly, I would have been better off having kid after kid after kid and collecting welfare and tax credits, free health care, and now even free cell phones with 250 free minutes a month.
Um yep, this is a real sore subject with me right now.
I think they should stop withholding taxes from everyones' paychecks, and send everyone a bill for the entire amount once a year. I think that's the only way we'll ever see tax reform.

You are not taxed on the original principle invested, only the profit. Any loss is taken off your AGI, adjusted gross income.