IRS and what do they really do with all their power Attempt number 2

[plowhog]

It took me a long time to figure out what a tax loophole was and how I could get some of this money all the rich folks were getting

Suppose you have a relative in the Nevada National Guard. You buy a shiny new $80,000 diesel pickup but don't have to pay any sales tax-- because of that affiliation. A savings of about $7,000. All your friends and neighbors who want the same truck must pay the tax-- would you call that a loophole?

National Guard members get sales tax holiday over Nevada Day weekend

Members of the Nevada National Guard will have a sales tax holiday in the final three days of October. The Nevada Department of Taxation issued guidance this week saying a bill passed during this year's legislative session provides an exemption for certain members and qualifying dependents. The...

mynews4.com

 

[Torvy]

I think a loophole is an unintended gap in policy that can be exploited to reduce tax burden. It is the fault of policy makers who don't write laws well.

In the case above, this is not a loophole because it is the intent of the law.

 

[3Ts]

Not a loophole. Tax policy and the deductions and credits are used to modify people's behavior to get them to do what the politicians want. This one will get a few more people to sign up for the National Guard.

 

[newbury]

I don't mind paying my "fair share"... what I hate is I have no say so on how it is spent, and where it goes...

Yet you and I elect people that determine how it is spent.

As long as power listens to big money, big money will be laughing all the way to the bank. Welcome to the big peasant pile people. Some peasants may be on the top of the pile while other's are below. It's still just the pile until they all wake up.

That is why they call the people at the bottom of the pile peons.

Not a loophole. Tax policy and the deductions and credits are used to modify people's behavior to get them to do what the politicians want. This one will get a few more people to sign up for the National Guard.

And who elect the politicians?

IRS does not make the policy, it's Congress that creates the policy, usually to favor their biggest donors.

 

[plowhog]

Why does the IRS need AR-15’s for collecting back taxes?

It's a bureaucratic move, below the radar, to get sweetheart pensions.

To carry a gun you need Peace Officer status. Bingo! Gaining Peace Officer status means you hit the retirement lottery. 3% retirement at age 50, then collect 90% of your salary for 30 or 40 years while you are retired.

 

[plowhog]

Not a loophole. ... This one will get a few more people to sign up for the National Guard.

Would *anyone* make a multi-year commitment to join the National Guard based on getting relief from sales tax for a day? Really? Whoever would join for that reason is probably someone you don't even want serving.

My problem with exempting groups from taxes is this:
- Next it will be Teachers who pay no sales tax;
- Then Climate Change advocates paying no tax;
- Then Black Lives Matters members paying no tax; and,

once you open Pandora's box, where does it end?

 

[CobyRupert]

Many of those caught up in the Pandora Papers, and the Panama Papers before that, are the wealthy of other countries. Americans, weren’t widely caught up in these investigations because our tax code is written by the wealthy, and for the wealth and makes tax evasion perfectly legal.
There’s no reason to cheat and hide when you can evade taxes out in the open. We’ve all seen how much Bezos had to pay.

Flat tax: Everybody pays the same rate. Sounds fair right? But what is the saying?:
Figures lie, liars figure.

Sure the percentage is equal, but don’t the poor get taxed more in reality? Let’s say it’s 10%. For someone making $50,000, that 10% is a lot “more” than someone who made $20 million. Their life will be zero impacted by taking home (only) $18 million. $5000 tax to someone making $50,000 has a huge impact on what groceries to buy, whether they can buy a second used car, a lawnmower, or send kids to community college, etc..
So is 10% equal to 10%? Mathematically it is, but not always in reality.

 

[MossRoad]

Many of those caught up in the Pandora Papers, and the Panama Papers before that, are the wealthy of other countries. Americans, weren’t widely caught up in these investigations because our tax code is written by the wealthy, and for the wealth and makes tax evasion perfectly legal.
There’s no reason to cheat and hide when you can evade taxes out in the open. We’ve all seen how much Bezos had to pay.

Flat tax: Everybody pays the same rate. Sounds fair right? But what is the saying?:
Figures lie, liars figure.

Sure the percentage is equal, but don’t the poor get taxed more in reality? Let’s say it’s 10%. For someone making $50,000, that 10% is a lot “more” than someone who made $20 million. Their life will be zero impacted by taking home (only) $18 million. $5000 tax to someone making $50,000 has a huge impact on what groceries to buy, whether they can buy a second used car, a lawnmower, or send kids to community college, etc..
So is 10% equal to 10%? Mathematically it is, but not always in reality.

I don't know. I make way less than $50K and pay way more than $5K in taxes, yet somehow I was able to meet a like-minded woman in the same situation, we both put ourselves through associate degree programs (she's got 1 and I've got 2), get married, have 2 children, pay off 2 houses, 20 acres, many cars, take nice vacations and send two kids though Purdue and come out with $0 in student loans, and we've been debt free since 1995. We have a suitable nest egg saved up for retirement in about 5 more years.

Knock on wood we haven't had any major medical catastrophes or long-term unemployment, but it took discipline and living well below our means to achieve our goals. Our children are now adults, and several times in the past year both have thanked us for giving them a good example. Heck, my new son in-law has told his wife we're the most normal people he's ever met. That was a shocker.

I think a 10-15% flat tax with no caps would be suitable in most situations.

However, I am in agreement with you in principle, and wouldn't oppose a tiered flat tax so those under the poverty level pay less % and ramp up from there. Just don't put a cap on it.

 

[riptides]

Flat tax is a fantasy.

There is much more to be made with a revamp of the entire system. And taxing the "rich", "wealthy" is only a small step. Much easier to say such things to the general population than to follow through.

We have short attention spans and just eat up those sound bites.

You know "give the finger to da man!"

 

[newbury]

but it took discipline and living well below our means to achieve our goals.

But that is not the modern American way as espoused by commercials!!
Throw caution to the wind and charge as much as you can!!
If you've got it flaunt it like you've got more!!