Do we have a post on the Tax Code?

[The_Tick]

So the first thing that the Repubs do in Congress is to sponsor a bill to eliminate the IRS, cancel personal and corporate taxes, payroll taxes, death/inheritance tax. They want to do everything off of a consumption bases sales tax.

Is that a good thing or a bad thing?

I know that when I was in Canada 15 years ago....everywhere we went there was a Provincial tax of 7% and an 8% National tax. So everything was 15% higher. Those two same taxes were also present on vehicle and home purchases also. Is that a bad thing?

I don't know enough about this stuff yet, but I know that some of y'all are pretty smart. What do you think?

[beefytee]

I don't think the Canadian GST ever went above 7%. I think it is at 5% right now. It was a pain when it was first introduced because as a kid growing up in Alberta, there was no sales tax and you paid the listed price.

I'm not a fan of sale tax in general. I'm no re-distributer of wealth guy, but it gives the rich a huge free pass. I would much prefer a simplification of the income tax and I'm not opposed to eliminating the corporate tax. This is obviously pie in the sky stuff that is going nowhere. I think taking small steps to improve the income tax is more realistic and practical.

[Jeff Lebowski]

So the first thing that the Repubs do in Congress is to sponsor a bill to eliminate the IRS, cancel personal and corporate taxes, payroll taxes, death/inheritance tax. They want to do everything off of a consumption bases sales tax.

Is that a good thing or a bad thing?

It's a bad thing. And it will never happen. This is all show for the clowns in their base.

[Mormon Red Death]

It's a bad thing. And it will never happen. This is all show for the clowns in their base.

why do you think it is a bad thing?

BTW...the fair tax

[Northwestcoug]

why do you think it is a bad thing?

BTW...the fair tax

I watched those two videos. That's the first time I heard the term 'prebate' and their plan to not tax anyone below the poverty level. So that's interesting. Still, I can't understand how they claim this isn't regressive. The 'fair tax' is still going to hit lower income people relatively harder.

[Pelado]

why do you think it is a bad thing?

BTW...the fair tax

Sales taxes tend to be regressive. Those with the least ability to pay typically pay a much larger percentage of their income into sales taxes than those with much greater capacity to pay. Those with less income generally need to spend more of it than those with more income, and they will be taxed on that consumption, further deteriorating their ability to save.

The fair tax link indicates there would be a progressive "prebate" for residents below the poverty line. That would make it easier for those who qualify for the prebate, but it would still be a regressive system overall.

[Mormon Red Death]

Sales taxes tend to be regressive. Those with the least ability to pay typically pay a much larger percentage of their income into sales taxes than those with much greater capacity to pay. Those with less income generally need to spend more of it than those with more income, and they will be taxed on that consumption, further deteriorating their ability to save.

The fair tax link indicates there would be a progressive "prebate" for residents below the poverty line. That would make it easier for those who qualify for the prebate, but it would still be a regressive system overall.

from what I understand everyone would get the prebate.

[Pelado]

from what I understand everyone would get the prebate.

Just went back and looked again and you're right. The proposal is that every legal resident would get the prebate each month for up to the poverty level.

But it's still a regressive system overall.

[Mormon Red Death]

From what i understand (I read this book on it 10 or so years ago) It works like this.

You would get taxed like you get taxed for Gasoline now. IE its built into the price of things. For example, If Amazon sells an Echo for $100 then price listed would be $123 and no taxes (still have state sales tax)

The prebate is meant to be calculated on what a family at the poverty line pays in sales tax a year. For example, if it's calculated that a family of 4 pays 10,000 for goods then the prebate for a family of 4 would be $2300 or about $200 a month.

[Jeff Lebowski]

I watched those two videos. That's the first time I heard the term 'prebate' and their plan to not tax anyone below the poverty level. So that's interesting. Still, I can't understand how they claim this isn't regressive. The 'fair tax' is still going to hit lower income people relatively harder.

It would be a tax hike for people making $30-200K and a massive tax cut for those making over $200K per year.

Not to mention all of the black market mayhem it would create. Terrible idea.

[Bo Diddley]

Congress has made the tax code the convoluted monster it is. I would love to see it simplified. You can have a progressive tax code and still keep it simple.

[Bo Diddley]

BTW, I take a close up look at taxes each year, and analyze how the changes affect me today and in retirement. One thing that always strikes me is the widow tax penalty. If I go first, not only is Mrs. Diddley's income cut from what my pensions pay, but she gets taxed as a single filer. So I just sock away as much money as I can, which should be enough to cover her needs. We'll definitely leave a lot more money to the kids if I live a long time.

[Goatnapper'96]

BTW, I take a close up look at taxes each year, and analyze how the changes affect me today and in retirement. One thing that always strikes me is the widow tax penalty. If I go first, not only is Mrs. Diddley's income cut from what my pensions pay, but she gets taxed as a single filer. So I just sock away as much money as I can, which should be enough to cover her needs. We'll definitely leave a lot more money to the kids if I live a long time.

I was skiing at Canyons/PC a few years ago with my wife in early December. I came off the Tombstone lift and took a picture of the sign for the run called "DeSchutes" which is a double black diamond. I texted it to my kids and one of my twins quickly responded with a "NOOOOO-Don't do it!!!!! You are finally worth more alive than you are dead."

[Bo Diddley]

[Jeff Lebowski]

I was skiing at Canyons/PC a few years ago with my wife in early December. I came off the Tombstone lift and took a picture of the sign for the run called "DeSchutes" which is a double black diamond. I texted it to my kids and one of my twins quickly responded with a "NOOOOO-Don't do it!!!!! You are finally worth more alive than you are dead."

Lol. Savage.