Anonymous
11/07/2017 17:14
Subject: What really needs to be fixed in the tax code?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Eliminate ALL deductions and exemptions. Institute a flat % tax.
Flat tax should have the first 25k or whatever exempted to allow the working poor to have a chance.
Flat tax would need to cover all current taxes: estate, dividends, etc.
I ask about estate tax, because some people think estates shouldn’t have a tax. (Yes usually the ultra rich ha ha.) But it may be a matter of principal, the idea that the money has already been taxed. (Unless it is from a foreign relative!)
I don’t want to get this sidetracked, but what do we all think?
I agree that the double taxation isn't fair, but at the same time, we are not an oligarchy. If someone has done very well in their lifetime and wants to pass a nest egg on to the next generation, then that is great. But consolidating billions is not great. As such, I am generally in favor of an estate tax, but maybe lift the exemption provision to $10M or $20M, and then have a tax on it from there. No one is suggesting taking it all away, but there should be incentive for older wealthy people to make strong donations to institutions etc.
Also need to figure out how to shelter a tax code from the various LLC's and "foundations"
Anonymous
11/07/2017 17:11
Subject: What really needs to be fixed in the tax code?
Anonymous wrote:It's seems like the talk about tax reform going on is not about fixing what's really wrong with the tax code so much as redistributing the tax burden. If you had the chance to fix the tax code, what would you fix?
Here's my list:
Treat carried interest as ordinary income.
Treat interest and dividends as ordinary income.
Index capital gains to inflation and treat as ordinary income.
Eliminate the mortgage interest deduction for second homes.
What else?
I 100% agree with all of these OP. I also want to get rid of the Social Security loophole allowing people to take spousal social security while delaying taking your own social security to maximize the amount. You get your own or 1/2 your spouses, and once you take it, you've made your choice, no switching.
Anonymous
11/07/2017 17:06
Subject: What really needs to be fixed in the tax code?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Eliminate ALL deductions and exemptions. Institute a flat % tax.
Flat tax should have the first 25k or whatever exempted to allow the working poor to have a chance.
Flat tax would need to cover all current taxes: estate, dividends, etc.
I could see that. Is that 25k exempted for all forms of income or just for salary?
If there are any deductions/exemptions, it should be from the bottom up in terms of no one at the top being able to take advantage.
Yeah I'd bump that up depending on cost of living area, like 45k in dc, 25k in Biloxi
Anonymous
11/07/2017 17:04
Subject: What really needs to be fixed in the tax code?
Anonymous wrote:Anonymous wrote:Eliminate ALL deductions and exemptions. Institute a flat % tax.
Flat tax should have the first 25k or whatever exempted to allow the working poor to have a chance.
Flat tax would need to cover all current taxes: estate, dividends, etc.
I could see that. Is that 25k exempted for all forms of income or just for salary?
If there are any deductions/exemptions, it should be from the bottom up in terms of no one at the top being able to take advantage.
Anonymous
11/07/2017 17:02
Subject: What really needs to be fixed in the tax code?
Anonymous wrote:Anonymous wrote:Eliminate ALL deductions and exemptions. Institute a flat % tax.
Flat tax should have the first 25k or whatever exempted to allow the working poor to have a chance.
Flat tax would need to cover all current taxes: estate, dividends, etc.
I ask about estate tax, because some people think estates shouldn’t have a tax. (Yes usually the ultra rich ha ha.) But it may be a matter of principal, the idea that the money has already been taxed. (Unless it is from a foreign relative!)
I don’t want to get this sidetracked, but what do we all think?
Anonymous
11/07/2017 16:59
Subject: What really needs to be fixed in the tax code?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Eliminate ALL deductions and exemptions. Institute a flat % tax.
YES - but only if we get rid of capital gains and raise the threshold on estate taxes.
Yep I agree, but also there still needs to be a plan for other forms of income.
So salary is covered. Would it still be flat for:
Dividends
Rental income
Estate/inheritance
Etc
I think eliminate virtually all deductions and keep the progressive tax system and a progressive tax on all those other things. Progressive tax system all around but zero loopholes and deductions for anyone.
People start paying taxes when they hit 40k.
If we're keeping any deductions personally I would support mortgage interest tax deductions because it promotes home ownership and childcare deductions because its so expensive and really cripples the middle class for possibly a decade as they have kids. And despite the histrionics of people on this board, encouraging people to start families and procreate is the future of this country.
I would also propose eliminating the corporate tax rate all together and simply ratcheting up the highest bracket. Tax it as income. Or having a lower rate and ratcheting up the high bracket. Either way.
I have issues with your suggestions. I went to type out the problems I see, but honestly I don’t know enough to offer a different opinion!!
We surely have enough very smart people to figure out how to make this fair, and how to make the math work. (But not me..I apparently have a lot more research to do in this area.)
What is attractive about the flat tax is the idea that it could be more ‘fair’ than the progressive tax. Hear me out. If you offer a progressive structure, and you have ANY deductions, the rich WILL deduct themselves out of the fairer progressive tax. ***Face it, they gave a lot more decision power to make the system work for them. They’ll just reconfigure their wealth/assets based on the new opportunity cost of a new system.***
A flat tax with zero opportunity to deduct, would force them to pay in, and relatively fairly.
L
Anonymous
11/07/2017 16:57
Subject: What really needs to be fixed in the tax code?
Anonymous wrote:Eliminate ALL deductions and exemptions. Institute a flat % tax.
Flat tax should have the first 25k or whatever exempted to allow the working poor to have a chance.
Flat tax would need to cover all current taxes: estate, dividends, etc.
Anonymous
11/07/2017 16:48
Subject: What really needs to be fixed in the tax code?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Eliminate ALL deductions and exemptions. Institute a flat % tax.
YES - but only if we get rid of capital gains and raise the threshold on estate taxes.
Yep I agree, but also there still needs to be a plan for other forms of income.
So salary is covered. Would it still be flat for:
Dividends
Rental income
Estate/inheritance
Etc
I think eliminate virtually all deductions and keep the progressive tax system and a progressive tax on all those other things. Progressive tax system all around but zero loopholes and deductions for anyone.
People start paying taxes when they hit 40k.
If we're keeping any deductions personally I would support mortgage interest tax deductions because it promotes home ownership and childcare deductions because its so expensive and really cripples the middle class for possibly a decade as they have kids. And despite the histrionics of people on this board, encouraging people to start families and procreate is the future of this country.
I would also propose eliminating the corporate tax rate all together and simply ratcheting up the highest bracket. Tax it as income. Or having a lower rate and ratcheting up the high bracket. Either way.
Anonymous
11/07/2017 16:42
Subject: What really needs to be fixed in the tax code?
Anonymous wrote:Eliminate ALL deductions and exemptions. Institute a flat % tax.
The truly wealthy will never allow this to happen. They love their tax games, loop holes, and deductions.
The only way a flat tax could work is if it's a MINIMUM floored tax rate.
Anonymous
11/07/2017 16:40
Subject: What really needs to be fixed in the tax code?
Anonymous wrote:Anonymous wrote:Eliminate ALL deductions and exemptions. Institute a flat % tax.
YES - but only if we get rid of capital gains and raise the threshold on estate taxes.
Yep I agree, but also there still needs to be a plan for other forms of income.
So salary is covered. Would it still be flat for:
Dividends
Rental income
Estate/inheritance
Etc
Anonymous
11/07/2017 16:40
Subject: What really needs to be fixed in the tax code?
Corporate tax should be 0% and capital gains and dividends from investors should be taxed as ordinary income.
Anonymous
11/07/2017 16:32
Subject: What really needs to be fixed in the tax code?
Anonymous wrote:Eliminate ALL deductions and exemptions. Institute a flat % tax.
YES - but only if we get rid of capital gains and raise the threshold on estate taxes.
Anonymous
11/07/2017 14:33
Subject: What really needs to be fixed in the tax code?
Anonymous wrote:Eliminate ALL deductions and exemptions. Institute a flat % tax.
Bingo!
And everyone should have skin in the game ..... even if it is a minimal % for those who have a low income. Everyone else should be taxed at a rate of 15% with no deductions or other avoidance techniques.
Anonymous
11/07/2017 13:57
Subject: What really needs to be fixed in the tax code?
Eliminate ALL deductions and exemptions. Institute a flat % tax.
Anonymous
11/07/2017 12:38
Subject: What really needs to be fixed in the tax code?
It's seems like the talk about tax reform going on is not about fixing what's really wrong with the tax code so much as redistributing the tax burden. If you had the chance to fix the tax code, what would you fix?
Here's my list:
Treat carried interest as ordinary income.
Treat interest and dividends as ordinary income.
Index capital gains to inflation and treat as ordinary income.
Eliminate the mortgage interest deduction for second homes.
What else?
Here's my list:
Treat carried interest as ordinary income.
Treat interest and dividends as ordinary income.
Index capital gains to inflation and treat as ordinary income.
Eliminate the mortgage interest deduction for second homes.
What else?