Buffett rule

[noonereal]

Originally Posted by JJIII

One thing is certain. If nobody contacts their Congressman about it, it absolutely will not get done.

I agree.

It seems capitalism has struck a perfect balance, the masses are given just enough to keep them from taking to the streets as our owners max out their pillaging.

[BlueStreak]

At the bottom end of the scale a family could pay 2% of their income to taxes and miss meals because of it.

At what point does a billionaire even feel the loss, much less miss any meals over it?

Dave

[merrylander]

Even though Congress has used the tax code for various purposes, other than revenue it is still skewed toward the wealthy. Take mortgage interest deduction, since the wealthy but those McMansions their tax deduction is far greater than Joe the Plumber and his 1500 sq ft rancher. Then in return for the tax deduction the slap a heafty capital gains tax on it when you sell. Bur suppose your job moves you, you are selling because you have to, not to make a profit.

Canada has no deduction for mortgage interest and no capital gains tax on the sale of your home. Home ownership as a percent of population is marginally higher there compared to here.

Property tax is deductible, basically a funds transfer from the feds to the locality. The medicare tax is higher here than Canada wher it only amounted to 0.8% on my taxable income, yet we don't have single payer?

The last return I filed back there was four pages long and one of those pages was the tax table. Erik can tell us if that has changed.

[JJIII]

Originally Posted by noonereal

JJ, how hard would it be to buy a house with this tax?


How easy would it be to inherit one?

See.


Seems this tax would make it very hard for one to better themselves if born poor.

If you inherit even a moderate home you have even a bigger advantage than you do now.

I think the answers to your questions can be found on this page....

http://www.fairtax.org/site/PageServ...ut_faq_answers

[JJIII]

Originally Posted by merrylander

Even though Congress has used the tax code for various purposes, other than revenue it is still skewed toward the wealthy. Take mortgage interest deduction, since the wealthy but those McMansions their tax deduction is far greater than Joe the Plumber and his 1500 sq ft rancher. Then in return for the tax deduction the slap a heafty capital gains tax on it when you sell. Bur suppose your job moves you, you are selling because you have to, not to make a profit.

Canada has no deduction for mortgage interest and no capital gains tax on the sale of your home. Home ownership as a percent of population is marginally higher there compared to here.

Property tax is deductible, basically a funds transfer from the feds to the locality. The medicare tax is higher here than Canada wher it only amounted to 0.8% on my taxable income, yet we don't have single payer?

The last return I filed back there was four pages long and one of those pages was the tax table. Erik can tell us if that has changed.

You now get a mortgage interest deduction on your income tax. If there is no income tax you're deducting nothing from nothing, you never paid the income tax in the first place.

[JJIII]

Originally Posted by merrylander

Canada has no deduction for mortgage interest and no capital gains tax on the sale of your home. Home ownership as a percent of population is marginally higher there compared to here.

The medicare tax is higher here than Canada wher it only amounted to 0.8% on my taxable income, yet we don't have single payer?

The last return I filed back there was four pages long and one of those pages was the tax table. Erik can tell us if that has changed.

Rob, check this paragraph.


"What is the FairTax Plan?
The FairTax Plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue replacement, and, through companion legislation, the repeal of the 16th Amendment. This nonpartisan legislation (HR 25/S 1025) abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax – administered primarily by existing state sales tax authorities. The IRS is disbanded and defunded. The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system."

[finnbow]

Originally Posted by JJIII

Rob, check this paragraph.


"What is the FairTax Plan?
The FairTax Plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue replacement, and, through companion legislation, the repeal of the 16th Amendment. This nonpartisan legislation (HR 25/S 1025) abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax – administered primarily by existing state sales tax authorities. The IRS is disbanded and defunded. The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system."

It seems to lack the desired progressivity of a "fair" tax (notwithstanding the poverty provision).

[merrylander]

Originally Posted by JJIII

Rob, check this paragraph.


"What is the FairTax Plan?
The FairTax Plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue replacement, and, through companion legislation, the repeal of the 16th Amendment. This nonpartisan legislation (HR 25/S 1025) abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax – administered primarily by existing state sales tax authorities. The IRS is disbanded and defunded. The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system."

Let me see, we do all of our spending here in the USA. The wealthy do a lot of their spending abroad. SS is a fair chunk of most senior's income,as is Medicare, if the payout is to be maintained then this national sales tax is going to be pretty hefty. It sounds good but without the numbers it meaningless.

[JJIII]

Originally Posted by merrylander

Let me see, we do all of our spending here in the USA. The wealthy do a lot of their spending abroad. SS is a fair chunk of most senior's income,as is Medicare, if the payout is to be maintained then this national sales tax is going to be pretty hefty. It sounds good but without the numbers it meaningless.

They say (Fairtax.org) the rate would be 23% for it to be revenue neutral.

[BlueStreak]

Originally Posted by merrylander

Let me see, we do all of our spending here in the USA. The wealthy do a lot of their spending abroad. SS is a fair chunk of most senior's income,as is Medicare, if the payout is to be maintained then this national sales tax is going to be pretty hefty. It sounds good but without the numbers it meaningless.

Yep, I have seen the "National Sales Tax" idea presented a number of times, but, always without numbers. I'm thinking that in lieu of any other tax, it would end up being "pretty hefty" as well. And steeply inflationary, in the short term. Think everything is high now, slap a ~20-25% sales tax on it.

Dave