Americans pay taxes on earned income and general worth until a certain point when suddenly they are able to pay none because of certain loopholes and so forth. When they become what we call rich, the opportunities to hide money in certain non-taxable areas are there for these people. If we all paid as little as 8% no matter who you are, is this the right thing to do? Multi-millionaires will still be required to pay millions of dollars in taxes instead of none. What do you think?
2006-11-11 23:31:20 · 8 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
what about the poor who pay nothing below a certain level??a question that runs two ways.the middle class carries the weight of all the loopholes and breaks. I believe that a flat tax or a VAT would be equitable to all. But you will get the whiners who benefit from the present system?CPA's attorneys tax preparers need the business?if they keep it complicated they can shill the masses?I 've always wondered why the Bible says to tithe a tenth to charity and church related things and the US Govt, takes a graduated rate ? why cant they exist on 10 per cent?
2006-11-11 23:41:46 · answer #1 · answered by richard c 4 · 0⤊ 1⤋
The idea of a "flat-tax" has been debated for a long time, and ultimately is much harder to do than it sounds up-front.
The issue is that if someone is making $100,000, then 8% is not much to them. However, someone making $100, that same 8% is very important to them.
And then how do you determine what 8% is taxed? Are you taxing just straight-up income? Well, this hurts the middle class the most, because the rich are able to hide their income and the poor get paid off the books. Would you tax things like capital gains (If you sell your house for more than you paid for it or if you sell as stock for more than you paid for it?) How about unrealized capital gains? (If you buy a stock for $1,00 and it is now worth $1.05 even though you haven't sold it).
It would be better to leave the sliding scale, reduce the tax code significantly (not to a straight flat-tax, but knock out a lot of the loop holes) and SIGNIFICANTLY punish tax-evaders. This not only includes "the rich" but people that are paid off the books and companies that cheat taxes and SSI too.
2006-11-11 23:38:16 · answer #2 · answered by jerry 5 · 1⤊ 1⤋
Your basic premise is wrong. Between regular tax and alternative minium tax everyone pays tax. The only legal way not would be to invest in your states municiple bonds. Don't trade bonds. Don't invest in private activity bonds and don't work. There are not many people who can structure their life in this manner.
The average citizens pays less than 20% of their income in income taxes. The average rate for the rich is above 32%. This is a progressive system.
2006-11-12 00:24:31 · answer #3 · answered by waggy_33 6 · 1⤊ 0⤋
Much of the tax code is written by Congress to encourage certain investment behaviors. When you actually do what they ask you to do, you call it a loophole.
Two-thirds of all the US income tax is paid by only 10% of the tax payers. More then one-third of it is paid by only 1% of the tax payers! How much more skewed do you think it can be?
2006-11-12 01:30:15 · answer #4 · answered by SDD 7 · 1⤊ 0⤋
1000 pardon for interjecting Oh super Wizard - maximum individuals could in no way heard of it because of the fact (and that i would be incorrect approximately this - yet...) from what I truthfully have heard, that's an unlawful substance over there. I truthfully have heard of information of people having a jar of Vegemite of their bags and grew to become into confiscated at customs. apparently it incorporates something it is banned by ability of the FDA (or some reason to that nature) i'm hoping this clears it up somewhat. (The_Mouse kowtows back to his mouse pad)
2016-10-21 23:02:39 · answer #5 · answered by montesi 4 · 0⤊ 0⤋
I think what happens when you own a business and partake in running the company is that there are so many areas that offer tax deductions---not loop holes.
This deductions are offered to small business and large corpreations.
They are all able to write off,
unlimited amount of items that are "lost"
employee (they are employed) training and food/lodging
business meetings
entertainment expenses
advertising expenses
traveling expenses that are need to represent the compay
there are so many others that yes they seem to pay very little
but
10% of a normal persons salary say $50,000=$5,000
CEO salaries say $500,000.=$50,000
after the write off
You as a normal person can still go long form and have deductions also.
2006-11-11 23:46:47 · answer #6 · answered by Wicked 7 · 0⤊ 1⤋
sdrum49 gave a good answer. I don't like the idea of social engineering though the tax code. That is why I favor the "Fair Tax".
2006-11-12 06:36:49 · answer #7 · answered by STEVEN F 7 · 0⤊ 0⤋
I think it is the best policy, but I don't think that it is handled in the right way
2006-11-11 23:40:22 · answer #8 · answered by . 2 · 0⤊ 0⤋