Posted on 06/18/2015 6:13:49 AM PDT by GIdget2004
Everyone? I believe that no matter what the tax plan, there will always be exceptions for the protected class.
(Gibsme my E.I.T.C.!!!)
What does it have to do with the flat tax argument? DUH.....one of the points of contention, from YOU, are deductions? You say no business deductions. My example made a fool of that position.
You cannot wiggle out of this. You were schooled.
That’s true, but complication is the friend of such corruption. Simplification would inherently expose much of it.
Remember, we don’t have a perfect system now. Just sayin.....
You tax the owner 10% on the money he paid himself.
In which case you are in favor of allowing the business deductions. Which you should. But it totally contradicts your other post....
This tax is a simple answer to a very complex question. How does one make it work on anything besides wages?
No... my point is you don’t give the owner deductions because of his income and family size, or because of his age, or because he bought a house and is paying big interest payments etc etc. The part you missed in my scenario is there is not a business tax. You tax people.
It is simple, but it’s not just as simple as wages.
But to try and answer your thoughtful question, I would say that the very existence of Sub S corporations and LLCs - and there are MILLIONS AND MILLIONS of them. The benefits to the owners of these companies often benefit outside of just the wages. I believe they should, as the risk takers.
Also, the profit of an LLC or a Sub S “flows through” to the owners income tax form whether they take that money out in wages or not. So part of the complication here is not the new tax idea, it’s the baked in realities of the old tax idea.
The debate I was having is that several posters were advocating no deductions, even for businesses. That is just not workable. Nothing about a flat tax would be as complicated as the monstrosity we have now, but it would be complicated nonetheless.
those are not business deductions...those are PERSONAL deductions.
I think payroll is a business deduction. I think rent on the business building is a business deduction.
If you choose to take all of your income from the business the whole million dollars into your personal checking account, yeah... then you just pay 10% on the million dollars.
Those without skin in the game, currently about half of all taxpayers, may be a bit miffed at the thought of their tax bill going way up. How do you sell it to them?
Neither. Go read up on MACRS and Section 179, for example. We will wait for your revised example.
did you not say you were against business deductions in another post?
There are no business deductions, there is no business tax. A business makes money. OR, a business looses money. Its not subject to taxes. The owner takes money out of the business for his personal use.... he shows it on a W2 and pays 10% tax on it. He decides to mix the two together the gross income is taxed 10%. Its not complicated unless we try to make it complicated, or to game the system.
As long as you're taxing someone then you'll always need an organization to process the returns. It may be smaller but it'll be there.
Cutting the Corporate tax rate is key. Unless we do it and re negotiate all of our trade deals we will just continue to languish.
Oh you think you’re so cute....I was doing a simple equation to smoke out the debate on the notion of business deductions. I’ve taken 179 deductions many times, and made the decision not to take them as 179s many times, and counseled others on what to do or not to do.
But 179 hasn’t a damned thing to do with this debate, of this very simple equation. I’m getting to an idea here, not filing a complete tax return. So to make your life simple, why don’t you just consider all those equipment costs as leases an rentals and not depreciated purchases.
Nice try tough.
I’ll give you one more chance -
Tell me why you are against eliminating all deductions from the tax code. Why is that not a desirable part of fiscal policy? Other than you simply got used to it.
From a macroeconomic standpoint. From a philosophical standpoint. From a political standpoint even.
If you can’t articulate a viewpoint (assuming you actually have one)then your better off going elsewhere for your jollies.
But smaller and simpler is by definition a HUGE HUGE game changer.
Without the complications, intentional over complications, there wouldn’t be the ability for the IRS to be such an important part of our lives.
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