Let me know what you think

[smedlap]

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Market Timer, what say you? Please go to: http://www.taxfoundation.org/pressroom.htmlif taxes are the discussion. Forty Nine % of Americans pay no federal income tax and the wealthy bear the preponderance of that liability. It's a great website anyway!

 

[Guest]

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Mr Luffer (O'Reily joke)

Like most things the pendulum is going to swing the other way.

There is a reason there is a poverty line. It is not fair to hurt those people.

Morpheus

 

[pyriel]

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smedlap wrote:

Market Timer, what say you? Please go to: http://www.taxfoundation.org/pressroom.htmlif taxes are the discussion. Forty Nine % of Americans pay no federal income tax and the wealthy bear the preponderance of that liability. It's a great website anyway!

Hmmmm.... I don't know about the wealthy bearing the preponderance of the tax liability. Although, the wealthy do pay taxes, the IRS is on their side. They are able to deduct just about everything and whatever's left is what they pay for taxes. I would have to say that the poor and middle class is the one that is paying the brunt of the taxes here in US. But then again, working class such as us is in a disadvantage because of the rules in IRS. This is what I think, no matter what kind of tax scheme they pull off in Congress, the rich will always find a way to go around it (they been doing it for hundred of years) and we will get hit big time on it.

Pyriel

 

[MohammadXX]

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It's hard to define "middle-class" To me, you are only wealthy if you can maintain your current lifestyle when thepaychecks stop. How many of us couldafford to miss one or two months pay?

Also, the cost-of-living varies greatly depending where you live. Crummy homes go for$300,000 and up in NJ, and property taxes areoutrageous--that's why we have locality pay. But it still makes it hard to create a fairnational tax system.

 

[smedlap]

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Hi MohammadXX. Have not seen your postbefore but welcome as Tom and others always greets every new member.Nice post! And pyrid - again nice comments. WhileI agree with your opinion, did you actually read the site data I posted or are you providing your founded opinion? It takes time to study the site factual data. The point of this site datashould contributetoan understanding of higher income tax brackets so thatwhenone retiresand achieves TSP success from this board, That person will be leading others in providing accurate info vice personal opinions. Facts are facts. Returns and wealth are the same!By your participation, it appears you intend to retire comfortably! As to you MohammadXX, I feel your pain as I am in New York and I think from the website I posted, I pay higher income taxes then you. I think Conneticut is #1, NY - # 2 and NJ with a supplemental strip search with each highway stop- #3. As to Phoenix, Arizona - the 5th fastest growing area in the US, my house there compared to my house in New York is 0.33 in taxes - same assessed value. I drive at 85 mph around Phoenix on hwy 110 and the people are wonderful!!! I hear in NJ that when stopped, one is asked for 3 pieces of information: driver's license, current auto insurance and vehicle registration. Is it true thatt if you do not produce any of these items on site you are assessed $150 per? Your comments!

 

[grandma]

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pyriel wrote:

. This is what I think, no matter what kind of tax scheme they pull off in Congress, the rich will always find a way to go around it (they been doing it for hundred of years) and we will get hit big time on it.

Pyri

Is the death tax that was mentioned earlier the same as the inheritance tax??

A retirement seminar I attend a couple of years ago brought out the information that the Very Wealthy had an `extra hidden' legal way to avoid the inheritance tax, can't remember the wording - the point was that this tax is a death knell to small, family-owned business, an problaby to the survivors themselves; that the wealthy don't end up having to pay it anyway.

Maybe Sen Kennedy will share his secret when he does his living autobiography.......

 

[ducklips]

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markettimer those are good points to ponder,but we have been living in a socialized climate for the last 50 years.That is why we need such drastic change in our tax system.I would prefer to keep all my federal tax money and just pay tax on what i consume wouldn't you? There's too much gov't in my daily life and anything to get them out of my business is great.Yes fairtax.org is a lobbyist so I always take their opinion with a grain of salt.but I believe the approach is a good idea.I only mentioned them because I assumed most people didn't know that much about the issue and their webpage is a good place to start becoming familiar with the concept.I would like to hear your rational on why our taxes would go up 50% under a national sales tax or why some believe that the burden of the tax would fall unfairly on the middle class and poor.

 

[Mike]

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MT is engaging in rampant speculation. Until we see an actual bill under consideration in Congress, none of us know for sure what rate they are pursuing or what exemptions (if any) will exist under the new tax law.

As for taxes and how they impact different groups, that is really a study of economics. The current system is defined as progressive because you pay more as you earn more (unless you are able to take advantage of the various areas of the tax code that provide deductions / credits / shelters). A sales tax by definition is regressive because the lower your income, the higher the percentage of that income is devoted to buying things... and is thus taxed accordingly.

If the rate they pursue - assuming this gains any traction on the Hill - is low enough, I will support the bill. I already know what my expenditures are on a monthly basis, and I know what my income tax liability is. So, it won't take me long to figure out whether or not the new system is favorable to me or not... and in any case, if it appears the reform will pass Congress, I'll get as many major purchases out of the way as I can before that tax takes effect. :^

 

[zoeb]

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Nothing wrong with a little speculation...it gives everyonea chance toprepare for the future considering different scenarios.

The bad thing about a flat tax is that it loses the upper most bracket and the lowest bracket for one that everyone will pay evenly...say 23%. Now that's a little high for those well paid Wal-Mart employees so the new tax code will have to exempt those livingat aworking poverty level. Add that exemption to the mortgage and retirement savings deductions and the tax simplification plan becomes more complicated. Add hundreds of lobbied deductions and you just have a new tax plan levied at the middle class. Remember, Steve Forbes championed this tax plan and that doesn't bode well for the middle class.

A straight consumption or sales tax would be even more impossible to levy due to the complexities of what services, products andsalariesshould beexempt. This kind of tax would hurt the economy the most as people would do without or make do to avoid paying the tax.

But you might see a combination of both systems to make the increases to middle class less visible. Just my $.02!:^

 

[pyriel]

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Mike wrote:

As for taxes and how they impact different groups, that is really a study of economics. The current system is defined as progressive because you pay more as you earn more (unless you are able to take advantage of the various areas of the tax code that provide deductions / credits / shelters). A sales tax by definition is regressive because the lower your income, the higher the percentage of that income is devoted to buying things... and is thus taxed accordingly.

Hi Mikey!

I am neither against nor for the bill. However, I do know that whether we change our tax system or not, the rich will always get away with it. Here is why... Rich usually have businesses that allows them to deduct most if not all of what we (poor and middle class)would call expenses. I know of a guy that has acompany here that drives a nice car but he is not paying for it; his business is paying for it. His internet service, his garbage collection fee, the place he is staying at, his gas, his nanny, his insurance, etc. etc. etc... Get the picture? For us we call these expenses, but for the rich, they call these deductions. So either way, we lose....... UNLESS, we follow what they do.:^ You know what? they actually work!:dude: