Because They've Earned It

[Shocker]

Originally Posted by glatt

But only because of the unfair nature of the head of household filing status instead of the multiple discounts one should get for each marriage.

LOL there's a discount? Like buy one get one free? Or just 15% off your 3rd wife?

[Shocker]

Originally Posted by Happy Monkey

Further note (I'm not saying you don't know this, but I have run into people who didn't): The top earners are not taxed 35% on their entire income; just the part over a certain limit. Everyone gets a certain amount of income tax-free, then a certain amount taxed at 10%, then a certain amount taxed at the next level, etc, and the remainder is taxed at 35%. There is no point, based purely on the progressive tax system, at which earning a dollar more will cause your taxes to increase by more than 35 cents. Deductions, credits, AMT, etc. can do weird stuff, though.

I actually did know this (I'm an accounting studend for those who wondered) but I didn't mention it for simplicity sake. If you are in the top tax bracket, then the actual amount you will be taxed would be $97,653.00 plus 35% of the amount over $336,550.

Originally Posted by Happy Monkey

The biggest problem with "flat tax" discussion is that the idea of a single tax rate and the idea of eliminating deductions and credits are in no way tied together. Removing deductions and credits could be done just as easily with progressive tax rates, and removing progressive tax rates could be done while leaving deductions and credits in place. Arguing the merits of one doesn't transfer to the other.

You are right that those options are not dependent on each other nor are they mutually exclusive. As they say, only 2 things are certain in this world, death and taxes, and we can talk about the fine points for hours upon hours. I was just trying to give those who maybe didn't know much about any of the options out there a bit of a foundation and starting point so they can begin their own research into what they like and dislike about them. All of them are completely customizable and bits and pieces can come and go to fit most situations. I've heard of flat tax rate plans that are based off of all earnings, regardless. I've also heard of others where there is a generous cost of living deduction for all, anywhere up to $20000 so that the first $20000 you make isn't taxed, and then all income starting at $20000.01 is taxed at the flat rate. Personally, I like what I've seen of the Fair Tax which I linked to in my other post, but like I said, I just wanted to give at least a basic foundation so that others knew some of the options.

***Disclaimer*** the above tax rate is taken from the 2006 Single tax schedule. It could be different based on your filling status.

I'm sure we can all agree that the wealthy have more money therefore they spend more money so they pay more tax.

Nope, most of the wealthy's money sits in savings, investments and in intangibles and is not spent at all... I do not agree and most who know, would find that to be part of the current problem.

[Shocker]

Originally Posted by rkzenrage

Nope, most of the wealthy's money sits in savings, investments and in intangibles and is not spent at all... I do not agree and most who know, would find that to be part of the current problem.

LOL ok rkzenrage that may be true but I guess I didn't say what I meant quite right either. What I meant, and what the national sales tax boils down to is that even if most of a wealthy person's wealth sits in the bank or some other investment house, they will still spend more than your average person. I will agree that there are some wealthy people that got that way by being frugal, but for the majority, they like to spend their money just as much as the next guy. Whether it be on cars, houses, fine dining, boats, etc... And even when they have money in savings, say under the current system, all that would be taxable would be interest, not the money they've accumulated. And when their money is in investments under the current system, they only get taxed on that when they sell the investments (capital gians). So even if most of their money is in savings or investments, the tax result from those holdings would largely remain unchanged.

I hope that clarified the point I tried to make on that one a little bit.

[Shocker]

Thanks glatt! oh and I hear you get an additional deduction off your state taxes if you live in Utah.

[yesman065]

Hows the weather in here?

[Shawnee123]

Quit bogartin' that shit, Flint!

[xoxoxoBruce]

So the Federal Government will flat tax my income at 10% and the State will give up their sales tax revenue? I don't think so.

Is the state going to get a piece of the 10% flat tax to replace the sales tax money?.....and the state income tax money?......and the local income tax, they just instituted, to give property tax relief? No way.

Why not? Each state gets their percentage.

[Happy Monkey]

Originally Posted by rkzenrage

Why not? Each state gets their percentage.

You think they'll be willing to let the Feds determine that percentage?

[9th Engineer]

Why wouldn't they just determine the percentage based on the percent contribution from each state?

Originally Posted by Happy Monkey

You think they'll be willing to let the Feds determine that percentage?

The Feds are who? State Senators and Reps, if I am not mistaken. Where am I?

[Happy Monkey]

Originally Posted by 9th Engineer

Why wouldn't they just determine the percentage based on the percent contribution from each state?

Because some states get more back than they contribute, and if that changed they'd be in real trouble. And while I may be pissed off at some of those states 'round election time, I don't particularly want them to collapse.

Originally Posted by rkzenrage

The Feds are who? State Senators and Reps, if I am not mistaken. Where am I?

But from a particular state government's perspective, the number of feds from that state is pretty small.

Representative Republic... not a Democracy.

[9th Engineer]

wealth is a great motivator, perhaps the threat of only receiving in direct proportion to what you produce would be good incentive to clean up their acts.