Finally something that we can agree on, there is nothing fair about a fair tax, it is the most regressive tax system that I have seen in my lifetime.
Blaster34 wrote:
But either one is far better than the totally complex, incomprehensible and unfair current system in place now. However, if you want to change the current code, eliminate ALL loopholes then reduce the effective tax rate on everyone and ensure ALL citizens pay federal income taxes. If they can tax Social Security, they can tax welfare, child support, workers comp, disaster relief payments and many others.
https://www.urban.org/sites/default/files/publication/26506/901527-Five-Myths-About-the-Percent.pdfhttps://www.statista.com/statistics/242138/percentages-of-us-households-that-pay-no-income-tax-by-income-level/#:~:text=In%20total%2C%20about%2059.9%20percent,paid%20no%20individual%20income%20taxes.
It's interesting to see how the stats change over time. As jobs and wages increase, I'm curious to see how that moves the % paying federal taxes in each of the income brackets.
I wonder if you'd have those same sentiments if you see, as I do the number of retirees, trying to live on SS and small investment income. I do believe that people initially entering job markets with low pay and people exiting the workforce with low pay should not have to pay federal taxes.
Since the inception of the Income Tax, politicians have and will always jerry-rig the tax code to favor votes no matter who they are, unfortunately, the current system is so full of loopholes, its doubtful if it will ever be fair, or fairer....CHEERS!
2024 Update on Federal Income Tax Data from the IRS:
In 2021, taxpayers filed 153.6 million tax returns, reported earning more than $14.7 trillion in adjusted gross income (AGI), and paid nearly $2.2 trillion in individual income taxes.
The average income tax rate in 2021 was 14.9 percent. The top 1 percent of taxpayers paid a 25.9 percent average rate, nearly eight times higher than the 3.3 percent average rate paid by the bottom half of taxpayers.
The top 1 percent’s income share rose from 22.2 percent in 2020 to 26.3 percent in 2021 and its share of federal income taxes paid rose from 42.3 percent to 45.8 percent.
The top 50 percent of all taxpayers paid 97.7 percent of all federal individual income taxes, while the bottom 50 percent paid the remaining 2.3 percent.
The 2021 figures include pandemic-related tax items from the American Rescue Plan Act (ARPA), such as the non-refundable part of the third round of Recovery Rebates and the expanded child tax credit (CTC) and earned income tax credit (EITC).
Capital gains realizations exceeded $2 trillion to reach a 40-year high, driving income growth and taxes paid for high-income groups.
Blaster34 wrote:
Since the inception of the Income Tax, politicians have and will always jerry-rig the tax code to favor votes no matter who they are, unfortunately, the current system is so full of loopholes, its doubtful if it will ever be fair, or fairer....CHEERS!
2024 Update on Federal Income Tax Data from the IRS:
In 2021, taxpayers filed 153.6 million tax returns, reported earning more than $14.7 trillion in adjusted gross income (AGI), and paid nearly $2.2 trillion in individual income taxes.
The average income tax rate in 2021 was 14.9 percent. The top 1 percent of taxpayers paid a 25.9 percent average rate, nearly eight times higher than the 3.3 percent average rate paid by the bottom half of taxpayers.
The top 1 percent’s income share rose from 22.2 percent in 2020 to 26.3 percent in 2021 and its share of federal income taxes paid rose from 42.3 percent to 45.8 percent.
The top 50 percent of all taxpayers paid 97.7 percent of all federal individual income taxes, while the bottom 50 percent paid the remaining 2.3 percent.
The 2021 figures include pandemic-related tax items from the American Rescue Plan Act (ARPA), such as the non-refundable part of the third round of Recovery Rebates and the expanded child tax credit (CTC) and earned income tax credit (EITC).
Capital gains realizations exceeded $2 trillion to reach a 40-year high, driving income growth and taxes paid for high-income groups.
Since the inception of the Income Tax, politicians... (
show quote)
Yes, that's how a progressive tax system works.
Blaster34 wrote:
But either one is far better than the totally complex, incomprehensible and unfair current system in place now. However, if you want to change the current code, eliminate ALL loopholes then reduce the effective tax rate on everyone and ensure ALL citizens pay federal income taxes. If they can tax Social Security, they can tax welfare, child support, workers comp, disaster relief payments and many others.
Eliminating ALL business deductions will have profound impact on the economy. And shift more wealth from working Americans to the wealthy.
jcboy3 wrote:
Eliminating ALL business deductions will have profound impact on the economy. And shift more wealth from working Americans to the wealthy.
The tax code should be designed more to support investment, businesses and economic growth, not just as a punitive hammer and a means for wealth transfer as it is today. Economic growth equals more revenue for the Treasury, like the JFK/Reagan/Bush/Trump tax cuts. However, by eliminating ALL/MOST deductions, the overall tax rates could be lowered for ALL taxpayers.
jcboy3 wrote:
Eliminating ALL business deductions will have profound impact on the economy. And shift more wealth from working Americans to the wealthy.
I believe personal and business returns should be kept separate. Being able to pull through business losses to offset personal income tax liability should be thoroughly investigated. It's pretty easy to create a paper loss with business deductions.
Triple G wrote:
Tax cuts do not equal economic growth. Trickle do... (
show quote)
Why don't you higher tax types call for eliminating useless government programs, eliminating waste, why do you folks always demand more of others money to support a government so full of waste? If a public corporation were ever as sloppy as the federal government its corporate officers would be prosecuted and thrown in jail.
Blurryeyed wrote:
Why don't you higher tax types call for eliminating useless government programs, eliminating waste, why do you folks always demand more of others money to support a government so full of waste? If a public corporation were ever as sloppy as the federal government its corporate officers would be prosecuted and thrown in jail.
Nobody on the left EVER talks about reducing the size of this overbearing, over-regulating, ever intrusive government. The federal government is bloated beyond its means, rife with corruption and waste and its self-perpetuating bureaucracy is a far bigger threat to this country than any other institution or enemy nation....
Blurryeyed wrote:
Why don't you higher tax types call for eliminating useless government programs, eliminating waste, why do you folks always demand more of others money to support a government so full of waste? If a public corporation were ever as sloppy as the federal government its corporate officers would be prosecuted and thrown in jail.
Easy answer. The OP topic is taxes and so we're discussing taxes.
Triple G wrote:
I believe personal and business returns should be kept separate. Being able to pull through business losses to offset personal income tax liability should be thoroughly investigated. It's pretty easy to create a paper loss with business deductions.
There isn't anything to investigate. It's not a "paper loss" issue; it's simply a question of whether your business is entangled with your personal life to the extent that personal expenses look like business expenses.
Blurryeyed wrote:
Why don't you higher tax types call for eliminating useless government programs, eliminating waste, why do you folks always demand more of others money to support a government so full of waste? If a public corporation were ever as sloppy as the federal government its corporate officers would be prosecuted and thrown in jail.
The government runs on debt. Other peoples money isn't being used to run the government.
Unlike corporations, government workers actually make very little money.
One persons "useless government program" is another persons "cash cow".
I have a six figure income, and a 4% tax rate (like last year). I don't want to pay more in taxes, but that's just me. What's your tax rate?
jcboy3 wrote:
There isn't anything to investigate. It's not a "paper loss" issue; it's simply a question of whether your business is entangled with your personal life to the extent that personal expenses look like business expenses.
I was getting to the point where business losses are brought through to offset personal profits and avoid paying income tax.
I understand the reasons why, etc. I just know of some small businesses who regularly created net business losses by buying unnecessary computer upgrades, society memberships, etc. It's a legal strategy that I believe should be reviewed and tightened.
https://www.thebalancemoney.com/business-losses-to-offset-income-397687
If you want to reply, then
register here. Registration is free and your account is created instantly, so you can post right away.