Otherguy Overby
member
I'm suspicious of something called "Fair" tax.
Life ain't fair and attempts to make sharing the burden of government expense fair won't be because of feel good socialism. Only one person so far has mentioned what might come the closest. That would be to figure what an individual's actual annual tax burden was and then they pay.
For what Federal income tax top rate has been historically:
http://www.taxpolicycenter.org/TaxFacts/TFDB/TFTemplate.cfm?Docid=213
And most all of the states tack on more for their "share" too. Please notice how the tax rate jumped to pay for WW1. Then the jump in 1932 to pay for the socialist solution to the depression (caused by banking) and how it stayed really high through the end of the cold war. There's a bit of a hint in there why the economy took off after Reagan through the Clinton years... No, BJ Clinton had little to do with it except for claiming credit.
However, what no one has mentioned as to how our economy would change if income tax is eliminated for a national sales tax. No more taxes on investment return, savings, sales of appreciated assets (capital gains), whatever. I could then turn over my property investments without consideration of income tax strategy. Sheesh, the stock market would take off, personal investing would take off and so would business reinvestment. I'd no longer have to screw around with tax deferred exchanges, converting invesment property to residences or whatever. And, if you have a good year, no more AMT (alternative minimum tax) to worry about.
AMT is especially heinous. Yeah, you've been a good boy, paid all your taxes, kept track of all the deductions and everything else. Have a good year and AMT slaps you down hard.
My financial survival depends on proper tax planning which is legal tax avoidance/minimization. For me, nearly ANY tax system other than the present would be an improvement.
Life ain't fair and attempts to make sharing the burden of government expense fair won't be because of feel good socialism. Only one person so far has mentioned what might come the closest. That would be to figure what an individual's actual annual tax burden was and then they pay.
For what Federal income tax top rate has been historically:
http://www.taxpolicycenter.org/TaxFacts/TFDB/TFTemplate.cfm?Docid=213
And most all of the states tack on more for their "share" too. Please notice how the tax rate jumped to pay for WW1. Then the jump in 1932 to pay for the socialist solution to the depression (caused by banking) and how it stayed really high through the end of the cold war. There's a bit of a hint in there why the economy took off after Reagan through the Clinton years... No, BJ Clinton had little to do with it except for claiming credit.
However, what no one has mentioned as to how our economy would change if income tax is eliminated for a national sales tax. No more taxes on investment return, savings, sales of appreciated assets (capital gains), whatever. I could then turn over my property investments without consideration of income tax strategy. Sheesh, the stock market would take off, personal investing would take off and so would business reinvestment. I'd no longer have to screw around with tax deferred exchanges, converting invesment property to residences or whatever. And, if you have a good year, no more AMT (alternative minimum tax) to worry about.
AMT is especially heinous. Yeah, you've been a good boy, paid all your taxes, kept track of all the deductions and everything else. Have a good year and AMT slaps you down hard.
My financial survival depends on proper tax planning which is legal tax avoidance/minimization. For me, nearly ANY tax system other than the present would be an improvement.