Posted on 04/15/2019 11:25:28 AM PDT by Rummyfan
Everybody hates income taxes. Some people say there are too many loopholes, or too few incentives, or that they're too high, or too low, or that the system is rigged against (insert your favorite group here), or biased in favor of (insert your least favorite group here) or that the IRS is abusive, or too lenient, and -- almost everybody agrees -- the whole thing is corrupt and corrupting.
I know several of these complaints contradict other complaints, but you know what? They're all true. Every single one. Our tax code is a jumbled mess of contradictions, and the IRS is alternately abusive and permissive.
At the left-leaning Daily News today, David Cay Johnson writes that "there’s a fundamental problem at the heart of the way we fund our government." He says that there are actually two tax systems, one for "for working stiffs and retirees," and the other for "rich business owners [who] operate under a different system." Johnson's solution? Hire a lot more IRS auditors who will stick it to the rich.
(Excerpt) Read more at pjmedia.com ...
Just another lie to the voters from “conservative” republican officials. They had complete power and did not even mention the fair tax.
Well, maybe that would be a result of my suggestion. But, the flip side of that is less work to push paper on shell legal entities or check the box LLCs.
The point being, corporations create this vast array of complex structures to minimize income taxes. To segregate transaction streams. To play around with their state apportionment. To insulate IP payments from tax. To incorporate overseas.
I think if it’s a small enough fee, no one would change how they do business. $10 per year. Even the local pizzeria can afford that. $500 per year. Goldman Sachs would send it with candy and strippers.
You could cap it. $25 per entity up to a maximum of $500 let’s say. It’s not about incentivizing or restricting the number of corporations. It’s a simple way to get money. No calculation. 1/2 page form.
“Thank you for the privilege of doing business in the United States. Here’s $25. See you next year”
Sales Tax isn’t as easy as people think. It’s easy to pay. It’s not easy to administer or comply with. Here’s one nightmare I’m familiar with.
Bottled Water not taxable from grocery store in bulk
If sold at a 7-11 - taxable
Carbonated? taxable
Flavored but not carbonated - not taxable
Flavored but carbonated - taxable
From a vending machine - taxable regardless
It’s very difficult to code software to handle crap like this. To say nothing of services, or digital products, or digital services, or software, or cloud based products or software AS a service....
WHAT you are selling is often very difficult to define and technology far outpaces the tax laws. WHERE you are selling it is also hard to define.
I don’t disagree in general. But I almost view this as the notion of all of us one day driving electric cars. I’m not sure it’ll happen. The impact to the economy will be massive and I think that’s true regarding the income tax too. Government and everyone that serves it as a vendor has gotten far too big because of income tax revenues that I don’t think it can sustain usefully if the tax goes away. I may be wrong. The plane killed the train. We evolved. But I’m not sure we can do that in this day and age.
Eliminate the child tax credit. Especially with all the illegals flooding into the country to take advantage of that kind of freebie.
To abolish the IRS as it is now and move toward a consumption type of tax would require a well thought out transition plan. Does everyone remember Herman Cain’s 9-9-9 plan. It was really a transition plan to something like the “fair tax” (Which I think is the popular name for a consumption tax.) I don’t know if an real details were realized on it. I do applaud Mr Cain for at least having the guts floating it as a campaign idea and starting the discussion. The danger of course is have it evolve into a European style VAT and maybe get stuck in between two. There were a lot of people on this site absolutely adamant against it. (They probably had rice bowls to defend!) It makes the most sense economically & has the added benefit of encouraging savings which we desperately need more of!
It still doesn’t answer the issue regarding people like Warren Buffet who have enormous wealth but pay little taxes and as such are happy to see the “hoi polloi” middle class pay the lion’s share.!
Maybe in Trump’s second term.
Maybe a “value added tax”, I. e. national sales tax could work.
Will never happen. It was started not to collect taxes, but to put its iron vise around the neck of every American. It has done nothing but tighten ever since.
If you tax something, you get less of it—always. Your proposal will result in fewer companies.
But unless it’s very carefully implemented, a consumption tax (national sales tax) will hurt those at the bottom of the pay scale. Middle class on down...
The upper class can afford a sales tax as a percentage of their pay way more than someone in middle or lower classes. It depends on how wide the base is. There would need to be lots of exemptions for all sorts of “necessities”.
I just don’t see it.
If I want to open a Pizzeria or a Pet Store or a Car Wash... the $25 annual fee isn’t stopping me.
Besides, if that were true, entities would already be doing this because every state - every one - has an annual report fee on LLCs, SCorps, C-Corps, Partnerships..... It doesn’t seem to be stopping incorporations that have other benefits to the group. (tax loss sharing, etc.)
$25-$100 is not a disincentive. Not to anyone if you want to make a living.
FYI darling.
Seems right up your alley. :)
Alas, it’ll never happen
You’re right about that.
Both houses of congress have standing committees that are responsible for modifying taxes.
These are desirable committees for members of congress to sit on because it is easy to get people to give you money when you sit on one of these committees.
The Libs like to talk about change but this is not the change they are waiting for.
Just about nothing that is wrong in thous nation will ever really be fixed.
I have not seen any real improvement in my nearly 7 decades. Things only get progressively worse. Sure it ebbs and flow but the overall trend is worse conditions and more expensive and oppressive gubment.
With the Trump tax “cuts” my taxes actually went up because I lost more than half of my deductions. 24K doesn’t cover it. Not nearly. Who got hammered? The upper middle class. AGAIN.
You don’t see it because you aren’t thinking about economics. Any tax distorts the market. Your tax will, guaranteed, result in fewer corporations.
Income fasteners to go. IRS can’t go but needs to be down sized.
Patriolt and martyr, Irwin Schiff, paid with his life for telling the straight dope on this phony, albeit illegal tax.
Apportion the taxes based on the population of the states, that is.
10% flat tax from the first dollar. No exemptions. No deductions. No credits. No excuses. Put all the IRS employees on the unemployment role.
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