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US Tax Code Seriously Flawed
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| Krypton |
I was just reading up on the tax laws, especially the Fair Tax, Flat Tax, and Progressive Tax, and came to an astounding realization. The US tax code is SERIOUSLY flawed.
Utter retardation
1. Corporate Taxes - I am an avid capitalist, but I still want to keep it fair for the average income. Taxing corporate profits is retarded because those corporations simply pass on the tax burden to the consumber by raising their prices.
2. Capital gains / Dividend tax - This tax wreaks of double-taxation. First, my income is taxed. Or the corporation is taxed on its profits. Then, those profits are paid in dividends to shareholders who in turn have to pay a tax on the dividend because it is classified as income. Funny thing is the tax burden just get passed to the consumer, and less value is paid out to shareholders.
3. Income taxes - What right does the government have to know what my income is or what I buy? They don't yet its the law. It's the intrusion into privacy few are talking about.
4. Deductions - Loophole after loophole after loophole. If I had a taxable income, I know of sure fire ways to get by not paying any taxes totally legally. It's only by loopholes and deductions this is possible. In fact, higher tax rates on the rich mean nothing when they can take out deductions.
For example, you have $1 million. You put it on margin to buy stocks, bonds, equities, and you live off the proceeds.
Margin = Getting loaned the amount I have. So I would have $2 million
Because you're entire $1 million is used as collateral which can not be taxed, you don't pay taxes on it while at the same time, that $1 million can most certainly provide income forever tax free as long as its kept marginalized.
Not only that, but that $1,000,000 is after-tax income since it had to be earned. It's already been taxed.
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The Fair Tax is the best thing that we need to implement now. |
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| Capitalizt |
Answer to all points:
Correct. |
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| Yoepus |
Yes very much so.
I wouldn't agree the loopholes are as large.
And if you have a million dollars a year and are living on just the interest of your margin scheme, you are living a $100-$200,000 lifestyle, not a million dollar one...
How the current US tax system is written the sweet spot is to be middle class: no more than 65,000 per single filer or else you start paying hordes of money. |
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| Fir3start3r |
| Dood, you obviously haven't looked at the CANADIAN ones! :wtf: :nervous: |
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| George Smiley |
We should all pay more tax if you ask me, especially in the UK and USA where low taxes are directly related to large amounts of poverty...
Do you think poverty is an ok price to pay for the rich of our countries to become even richer?
Can't be good for the future stability of our two countries when they descend into lawlessness and we can't afford any more police! |
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| Yoepus |
| quote: | Originally posted by George Smiley
We should all pay more tax if you ask me, especially in the UK and USA where low taxes are directly related to large amounts of poverty...
Do you think poverty is an ok price to pay for the rich of our countries to become even richer?
Can't be good for the future stability of our two countries when they descend into lawlessness and we can't afford any more police! |
How can you explain then that most poor countires (alla Africa, South America, Eastern Europe, Central America) have less taxes on everyone than developed nations, yet are more poor and larger income gaps? Hmm... they should probably raise taxes on everyone! that'll fix it:rolleyes: |
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| Shakka |
| quote: | Originally posted by George Smiley
We should all pay more tax if you ask me, especially in the UK and USA where low taxes are directly related to large amounts of poverty...
Do you think poverty is an ok price to pay for the rich of our countries to become even richer?
Can't be good for the future stability of our two countries when they descend into lawlessness and we can't afford any more police! |
Wait wait wait....we're paying for poverty? Hell, I want my money back! |
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| WM2 |
| quote: | Originally posted by George Smiley
We should all pay more tax if you ask me, especially in the UK and USA where low taxes are directly related to large amounts of poverty...
Do you think poverty is an ok price to pay for the rich of our countries to become even richer?
Can't be good for the future stability of our two countries when they descend into lawlessness and we can't afford any more police! |
The ugly truth here is the poor have no political muscle(money), so they don't get any help which in their case would be money. It's kind of a viscous cycle, but redistribution is certainly not the answer either. That fixes a couple things and breaks tons of others. |
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