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Posted on 03/10/2005 7:23:53 AM PST by TheNightFly
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Have you ever owned a business?
I have, and do now. I am an employee of my own business. Companies pay my business for services that I render and my business pays me.
Companies, although they don't pay payroll taxes on my services, still have to pay for them, corp to corp. My business pays me the lowest wage possible to cut back on payroll taxes-- the remainder in dividends.
I can't just suddenly declare myself to be a business, though. If I did, I would find myself as Martha Stewart's cell-mate.
Yes. Laz is one of our most intelligent posters, that's fer sure.
He's also one of our most sober and serious. He NEVER fools around!
Just wanted to make sure you knew that...
Uuunnnggghhh. Must have more coffee..... This does not compute...
Who pays for the overhead to keep track of all these little banks and mini-loans?
I shall keep you under my bed where you can spawn ideas for ever and ever... or for a week or two while you ripen!
Look at it from the employers point of view. The majority of you companies overhead consists of having to constantly "deposit" revenue into payroll.
In contrast, you would only need to deposit a fixed sum of funds into your employees virtual bank. That takes care of them and eliminates your payroll.
From the employees point of view, they will still have all the purchasing power they used to have with a steady income. However, remember the part about people extending credit to themselves to convert their credit potential into income? People could directly control how much income taxes they owe by managing how much credit they extend to themselves.
Wrong! The Federal Reserve answers to Congress.
Hahahaha! Very clever for so early in the morning, at least on the West Coast.
I fired myself two years ago. I caught myself sleeping with the owner's wife.
Virtual banks wouldn't eliminate regular public banks. You can always go to a regular bank and convert some or all of your credit into cash or deposit it into a regular bank account.
Hay, this idea is only intended to eliminate payrolls, not create business welfare.
Not a chance. The IRS would so crawl all over this. Remember 'imputed income'? That was the money you were taxed on if a BENEFIT exceeded the normative amount as defined by the IRS.
The IRS would simply declare the credit offered by the employer as a benefit, attach an imputed income tax to it, and the entire amount would still end up being taxed.
Okay, so how about the next advantage of this system? ;^)
interesting.
I think it would only work if cash is eliminated.
I supposed you'd like us all to go back to living in caves, too.
Reducing overhead would help small business a lot.
Does he need to draw you a picture? Sheesh!
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