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Reply to "What really needs to be fixed in the tax code?"
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[quote=Anonymous][quote=Anonymous]Estate tax is fair because in our society, when money changes hands, it is taxed. Your employer pays you for your hard work, you pay taxes. Your father pays you after he's dead, you pay taxes. It's not complicated, and it's not unfair. The exception is "gifts" and even then there is a limit, just like with estates and everything else. And there does not need to be a flat tax, because we all theoretically pay the same amount of taxes on the same amount of money. If there is a progressive tax rate of 15% on your first 100k and 25% on more than that, everyone pays 15% on their first 100k of income. If you make 125k, you only pay 25% on 25k of that income. A flat tax is ridiculously stupid because asking a single mom making 30k to pay 25%, just like the billionaire making 50 million, is dumb. I have found in casual conversation that people just do not understand these very basic principles and that basically ruins any possibility for sane tax reform, because Republicans propose all kinds of unfair, regressive nonsense, and people just believe them because they have no idea what is going on.[/quote] In your 30k example, that’s why it was suggested there be a base amount that is tax-free. Whatever it is, 25, 30, 50k for every person is not taxed. [/quote]
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