Posted on 03/28/2014 7:03:46 AM PDT by SeekAndFind
Here’s my plan - eliminate withholding and move tax day to October 31.
Think about it.
And put Tax Lawyers and Accountants out of work?
Never happen.
That might be, but the purpose of the tax code is strictly about manipulating behavior.
This old idea is nothing more than offering a bait and switch. The bait is lower taxes overall but the switch is that taxes never go down or away. The fed is not the only taxing entity that takes money from us for carrying a mortgage. State, county, local all have fingers in the pie. If anything, taxes would go up at those levels.
Oh, and as to your statement about responsible people?
Those are EXACTLY the people that Obama seeks to cut off at the knees. EVERY policy of his has that intent and effect.
Simple. Evil. Perfect. *SMIRK*
It’s SO depressing to look at my paycheck stubs even though I put every DIME I can into pre-tax dollars for my 401K and my health care!
“Those are EXACTLY the people that Obama seeks to cut off at the knees.”
I’m only 5’1”. I’m fighting THAT, too, LOL!
Analyze this math -
100k loan at 3.5% interest.
Interest is tax deductible making it actually around 2.1%.
Inflation is 4-7%.
Who’s paying whom?
Need to do away with all deductions and go with a flat tax.
Have one personal exemption equal to the poverty line of about $12,000 and every dime after be taxed at one flat rate.
Married single one kid or 20, every dime after the personal exemption is taxed.
That would instantly end the class warfare and it would assure that liberals couldn’t get elected on ‘taxing the rich.’
It would be damn hard to get support for raising taxes if everyone paid the same rate.
It would also force high tax liberal states to fund their own BS ideas, because those high state and local taxes wouldn’t be deductible!
IMO, you wouldn't need to move the date. If withholding went, away, everything else would take care of itself. Do some research sometimes on the legislative debate when it was first enacted in 1943. The title is the "Current Payment Tax Act of 1943."
Moving the date is just my frosting on the cupcake.
Election day is a week after that, usually.
The purpose of taxes is to raise money to finance government services, not to manipulate human behavior or economic activity.Heh. No legislator thinks that is the function of taxes or any other law. All of the laws aim to regulate behavior, ESPECIALLY tax laws.
There seem to be an awful lot of people who don’t understand that if you pay $1000 for a tax deductible expense and it saves you $200 in taxes, you’re still out $800.
“California for example used to have a different sales tax rate in each suburb, as I recall from my 1984 trip to LA.”
The situation with sales tax is similar here in the Bay Area, and probably statewide.
The majority of most people’s net worth is their house. Doing away with the mortgage deduction will decrease the value of their largest asset.
Doing away with the mortgage deduction would be right up there with confiscating 401k accounts as a way to harm working people.
I’ll agree to that as soon as the legislature names one useless government agency they are going to shutter. Let me help them choose: EPA, TSA, Dept of Educ, DHS take your pick.
Time to scrap the income tax. Period.
The Tax code - and special interests trying to game it - are a HUGE source of corruption in washington.
Flat tax - personal and child deductions only. NOTHING else.
Actually, I would trade away all the deductions, etc., if withholding were abolished.
http://www.taxhistory.com/1943.html
http://www.taxhistory.org/civilization/Documents/Withholding/hst29051/29051-1.htm
http://www.americanthinker.com/2013/03/repeal_the_current_tax_payment_act_of_1943.html
http://object.cato.org/sites/cato.org/files/serials/files/cato-journal/1995/1/cj14n3-1.pdf
EVOLUTION OF FEDERAL INCOME TAX WITHHOLDING: THE MACHINERY OF INSTITUTIONAL CHANGE
Yup.
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