Income tax...do away with it....sounds good to me *DELETED*

[Dargo]

Re: Income tax...do away with it....sounds good to me

Since I have 5 kids, would you figure that I would be able to deduct them on the new plan? They cost me enough, I'd like to be able to deduct the expense! /forums/images/graemlins/wink.gif

 

[milkman]

Re: Income tax...do away with it....sounds good to me

That sure makes me pucker up, sounds like more of the same "Hello, I'm from the government and I'm here to help you."

 

[Bob_Skurka]

Re: Income tax...do away with it....sounds good to me

<font color="red"> Since I have 5 kids, would you figure that I would be able to deduct them on the new plan? </font>

IF I UNDERSTAND it correctly, you would be considered a family of 7. I would be considered a family of 3 (me, the lovely Mrs_Bob and Jr_Miss_Bob). So you would be allowed to buy, sales tax free, up to the amount allowed for the poverty level for a family of 7. I, on the other hand, would only be able to buy, sales tax free, up to the amount allowed for the poverty level of a family of 3. The poverty level "allowance" for a family of 7 would be much higher than the poverty level for a family of 3. So in essence, you would get a deduction for 5 kids via the poverty level allowance.

 

[daedong]

Re: Income tax...do away with it....sounds good to me

Bob,

A tax all the way through system is the fairest. If you think of it this way, the tax rate can be lower to acheive the same amount of tax at the retail end.

Just a thought

 

[thcri]

Re: Income tax...do away with it....sounds good to me

</font><font color="blue" class="small">( The overall strategy is... instead of taxing what people earn, the government would tax what people spend to encourage savings and investment.
)</font>

I am all for a simplier plan. I believe we would save a lot of money by a simplier plan. Investing for retirement I am all for. I think the social security plan stinks. I won't see a quarter of the money I put into it. I would rather be allowed to have my own plan. I think I could do better on my own in this case.

Savings, is great also. But you have to have a balance with it. If the only thing we do is save or our goals are to save then the country will be in trouble. Business/Government thrives when people spend. If we just put it in the savings account then the economy will shut down right with it. If in the back of my mind is to save save save then I don't buy tractors, I don't buy cars and so one. For me, as a business owner, the more people bjuying allows me to spend more, inverst more, hire more people, give more people jobs. Since 911 everyone has been should I say not spending out of fear. Same thing.

murph

 

[Bob_Skurka]

Re: Income tax...do away with it....sounds good to me

Vin, does Australia have the VAT like the EU does? If so, how does it work out in real terms?

I do tend to agree with you that taxing at every level will lower the overall rate, but the rate being proposed is 23% so given that, it would be very inflationary to our economy IF it were imposed at all levels. That is why I suspect it is only being imposed on the ultimate consumer.

 

[SkyPup]

Re: Income tax...do away with it....sounds good to me

Since it is almost the end of 2004, here is some important changes that you should take into effect, since Income Tax is not going away anytime soon:

Since 1986, taxpayers were permitted to deduct only their state income taxes from their federal returns. The new legislation resurrects the ability of taxpayers who itemize to deduct either their state and local income taxes or their state and local sales taxes (not both, however). This provision applies to the 2004 and 2005 tax years only.

Currently, individuals who itemize can deduct the fair market value for items donated to charity, such as automobiles or boats. Under the new legislation, however, if the item is sold by the charity, the donor’s deduction is limited to the gross proceeds from the sale—and that is likely to be less. This provision takes effect in 2005, so it may make sense to complete your donation in the current tax year.

 

[daedong]

Re: Income tax...do away with it....sounds good to me

Bob,

this topic is not a specialty of mine at all. first i think we are amongst the highest taxed in the world

Income tax

$0 – $6,000

Nil

$6,001 – $21,600


17c for each $1 over $6,000

$21,601 - $52,000


$2,652 plus 30c for each $1 over $21,600

$52,001 – $62,500


$11,772 plus 42c for each $1 over $52,000

Over $62,500


$16,182 plus 47c for each $1 over $62,500


Then we have a GST goods and service tax (food is exempt)

this is 10% this is claimed back if it is directly related to your business

Petrol and cigaretes are not in this group either they call these levies, not sure on rate but it is about 30% i think.

 

[OkeeDon]

Re: Income tax...do away with it....sounds good to me

May I remind all of you that there is no possible way to save any money on taxes as an overall situation. You can delay the payment (which is being done by borrowing) or you can switch mnore of the burdon around to different groups of people, but the only way to reduce the amount of taxes that must eventually be collected from someone is to reduce spending.

And, that's not an easy thing to do. No matter which party is in power and no matter how much they claim to want to reduce spending, spending still goes up. The pork barrel is more active than ever. There are obligations that have to be met. Spending will never go down as long as politicians depend on it to be retained in office.

So, there is no tax scheme that will save money. If you belong to a group (like a political party or a special interest group) that has enough clout to shift the burden somewhere else, you personally may save. But, someone else is going to get hurt. At best, it's a sero sum game. The way it's played right now, it's not zero sum; the total always goes up.

If you manage to shift some of the taxes away from yourself, you will be hurting someone else, and they will wish your soul to rot for doing it.

As for myself, I learned a valuable lesson from my father-in-law many years ago. His attitude was simple: "If I have to pay more taxes, it's because I made more money. Because the governement doesn't take all of my income in taxes, that means I have more left at the end of this year than I did last year. That's a blessing. I'm happy to pay my taxes."

 

[Bob_Skurka]

Re: Income tax...do away with it....sounds good to me

Vin, don't take this personally, but your tax rates suck!!!

I wonder why you bother to work at rates like those.

My business is in the highest corporate tax bracket and it is taxed lower than your top bracket (yet higher than the maximum individual bracket here).