So it rewards more for work and investment (less personal and corporate income taxes),but punishes idle assets like idle investments and luxurious consumption? Because income taxes,especially for lower income people,happen to be bad for the economy,so people won't have as much as they would to spend on everyday things.
2007-10-29 15:13:57 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Let's say you buy a home and put your hard earned money, sweat and blood into fixing it up. If you live in that house you expect to pay the same property tax rate on it as your neighbors.
Well here in WV, if you decide to rent that property your tax rate nearly doubles, so in turn you have to raise the rent to cover the upkeep and taxes on the property which in turn makes it impossible for less fortunate folks to find affordable housing.
Yes, there needs to be revisions where such negative ripple effects occur.
2007-10-30 03:21:26 · answer #1 · answered by rearvumirr 1 · 0⤊ 0⤋
It would be pretty hard to argue that the current structure should stay as it is, but the hard part is defining what should replace or reform it.
I'm not sure how you distinguish between investment, which you suggest should have lower tax, and idle investments, which you suggest should have higher tax. I do agree to some extent with your idea though of luxury consumption being taxed, although again I'm not sure just who'd define what is a luxury and just where the split would be.
Realize though that most low-income people don't pay income tax now, and if they have kids, very likely not only get all of the money back that was withheld if any, plus more in the form of EIC.
2007-10-29 22:32:29 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
They tried luxury tax before and it didn't work people stopped buying yachts and put a lot of people out of work. Why shouldn't we be able to buy what we can afford? Other than yachts how do you define luxury? Is a luxury apartment with 3 bedrooms a luxury they should pay a premium tax on because people don't need a nice place to live or that many rooms? What about a vacation cabin? A car that seats more than 4?
2007-10-29 23:59:45 · answer #3 · answered by shipwreck 7 · 0⤊ 0⤋
It needs to be simple. Now we work as slaves for the IRS keeping records and filling out forms-all at no pay and they fine us if we do it wrong-how did we end working for the IRS> Slavery has been abolished and our property can;t be taken without due process-yet time is money and the IRS requires us to donate our time or go to jail. Time for change.
2007-10-29 22:25:51 · answer #4 · answered by .skjceuafrepiuahfpoefhpieuaf 3 · 1⤊ 0⤋
No it should be based on a certain percentage of what you make with no deductions allowed. The more you make the higher the tax.
2007-10-29 22:21:59 · answer #5 · answered by Diane B 6 · 0⤊ 0⤋