Rediculous tax laws...?

Question

I never understood why people who have no kids pay more taxes than people who do. People who have kids actually get tax credits for each child they have and essentiallypay less taxes. Does this even make sense? They take more out of the system but put less in.

How about the Death Tax...? Its not even remotely fair that people who inherit money have to pay taxes on it. The taxes was already paid by the deceased, so the inheritor must now pay additional taxes.

Its all about creativity to screw people out of more tax dollars.

What do you think?

Answer 1

Here's another example. The guy who caught Barry Bond's 756th home run will now have to sell the ball because he can't afford to pay the taxes we would have to pay NOW if he keeps it!

For the lady who thinks the screwy tax code comes about because we elect presidents who want to lower taxes... everytime taxes have been lowered (as a %), within a few years the tax revenue actually goes up. Why? Because the lower taxes help the economy, on average people get wealthier (though the wealth is certainly not evenly distributed) and even though the % is lower, the amount of taxes they pay is higher. It is the same logic that in order to increase revenue, sometimes a company has to lower prices. For some reason, many people don't seem to understand this concept. I guess they assume that the pie is a fixed size and it won't get any bigger, and that if you cut the pie up into smaller pieces everyone gets less pie. But the truth is that you can make the pie grow, or shrink.

I agree with you also about the Death Tax. Whatever is left over to be inherited is the leftovers after the parents paid taxes and spending. Why should it be taxed twice? If some of the stock increased in value... the children who inherited the stock should pay taxes when they sell it... not when they inherit it.

But I also agree with the IRS guy. Whatever the law is, whether we like it or not, we need to follow it.

Answer 2

Actually, its not about creativity to screw people over, its more like creativity by people to screw themselves over.

The people elect presidents who say they will lower taxes, this is because the people want their taxes lowered.

The result is that a president gets in office and actually does what he said he would do and reduces taxes.

That reduction has to come from somewhere, so he says "Why dont I encourage home ownership by making interest paid on mortgages be tax free?" and then it gets implemented.

And the people rejoice, now they pay less taxes than they should.

Then the IRS reports government income from the year, and.... shockingly... its down from last year. Now schools get less money and roads get less money and everything else the government does gets less money.

And people complain again, they wonder why schools are getting less money when its directly their own fault.

Every problem in the tax code is because of this.

As far as estate taxes go, they are fair. In order for the economy to improve people have to spend money. Only, rich people dont have to spend that much money as a percentage of what they get. Bill Gates might get 5 Billion in a year and give half of that for taxes and spend maybe a few hundred K per year to survive, thus his bank account might get bigger at a rate of 2 billion a year plus.

The government doesnt want bank accounts to get bigger by 2 billion a year plus, because that holds back the economy. This is the same reason that interest from bank accounts is taxed.

The best way around that for rich people is just to tax them on the way out the door, IE the estate tax.

If somebody like Bill Gates is looking at a 50 Billion tax bill when he dies, at least the government will be able to give the schools more money that year.

Raiddinn Beatdropper

Answer 3

1) Theoretically, the kids will pay more taxes in their lifetime than their parents receive in deductions and credits.

2) Many items in an estate have not "already paid" by the deceased. For example, person A buys stock for $1 million and at his death it is worth $10 million. The $9 million in appreciation has never been taxed. If the heirs sell the $10 million in stock imediately after person A's death, they wouldn't pay a dime in taxes. The estate tax captures some of this tax.

Answer 4

I completely agree with you on Death tax.
When a family member inherits a family business after the death of its owner, they don't simply pay taxes for the liquid assets inherited. Truth is, they have to pay the government up to 47% in taxes — in cash — on all assets, including land, building, equipment, and more. Because the estate taxes are unreasonably high, many heirs who cannot afford to pay them are forced to sell their business, break up or liquidate their assets soley to pay the tax. This kills jobs and discourages owners from growing their businesses

There is a whole lot of information on Death Tax at: http://taxreport.info/folder.php?id=2

But I support that tax exeptions should be given to people having children, this way people are encouraged to be a family persson, which reduces crimes.

Answer 5

Pretty bad huh?
Want to fix that?
Support the Fair Tax Act. H.R. 25 www.fairtax.org

Whenever there is a tax change proposal, the knee jerk reaction is “how much more will I pay” and “do we get the rich to pay more. Rarely do we think of the long term advantages.
The income tax equation is income- taxes-compliance dollars = spending

The Fair Tax equation is income = spending + taxes+ compliance dollars, so here we are taxed as we spend and get back the compliance costs.
Rarely do we think of positive change and long term benefits.

Remember, after truly understanding the FAIRTAX:
The only people who hate it are career politicians, lobbyists, tax lawyers, tax accountants, the non working rich, IRS agents, and illegal aliens.

Answer 6

I can not understand this. It seems that nobody likes to pay taxes, not even their fair share. Every one thinks that the other guy is getting off free. I was a tax auditor for 15 years. Every single taxpayer I ever audited implied that I personally was discriminating against them, that I was trying to make a name for myself, that I should go out and get the big cheaters, etc, etc. It seems that no one likes to pay taxes. My father used to say that when you hear all that crying, that is a profit cry.

Answer 7

Who said the tax system had to make sense?