Biden taxes "patriotic"

iVillage Member
Registered: 06-23-2008
Biden taxes "patriotic"
200
Thu, 09-18-2008 - 11:28am

Can someone please tell me why the Libs are always screaming about "fairness" for everything, but then turn around and expect unfair taxes on the rich?

MONTANA MOM !

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iVillage Member
Registered: 09-08-2006
Sat, 09-20-2008 - 10:53am

 

iVillage Member
Registered: 05-14-2008
Sat, 09-20-2008 - 11:15am

Let me answer for you absence. It isn't better. No matter how you slice it once you're in the top bracket each dollar earned is taxed at a higher rate--currently 35%. If there were a flat tax of 20% on all income well you do the math: 1 million earned in the highest bracket you pay either $350,000 under the current system or $200,000 under the flat tax system.

The implication is that it would not allow deductions to reduce the taxable income but we both know that most of those so-called adjustments to income are already phased out for those top bracket folks so the argument is bogus.

I'll speak further for her based on some of her past comments she doesn't like the idea of long term capital gains being taxed at a lower rate. So let's assume of that 1 million in income that 50% was long term capital gain. Today we'd have half taxed at 15% and the half at 35% for a total bill of $250,000. That still is a greater tax bill than the flat tax would bring. Not to mention it very well likely would discourage long term capital investment because there is no incentive to keep that money locked up anymore being that you're taxed the same either way.

It's pretty fair to say that you typically get more of what you reward and less of what you penalize. If you capital investment and savings which is sorely needed to produce and maintain a robust economy-the answer is not to penalize it by placing an excessive tax burden on it.

It's funny because you hear the talk about no more "giving tax breaks to companies that move overseas" and giving them to those who remain here instead. Funny thought when you consider the reason many left in the first place is because of the tax burden they faced.

Come back and we'll tax you less! Yes, indeed I'd tread carefully when deciding on whether or not to place any more burden on the so-called wealthy--they're not typically stupid.

iVillage Member
Registered: 05-14-2008
Sat, 09-20-2008 - 11:19am

>>The rich pay more because the progressive system takes into account other income which the flat tax leaves out until realized.<<

I do apologize. This makes no sense to me. Can clarify what you mean here?

Based on my experience the rich pay more under the progressive system because their marginal tax rate is much higher. What is the flat tax system not taxing that the progressive system currently taxes?

iVillage Member
Registered: 09-08-2006
Sat, 09-20-2008 - 12:07pm

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iVillage Member
Registered: 08-25-2008
Sat, 09-20-2008 - 12:15pm

IMO, they are better off under the progressive system since I have not seen a flat tax proposal I found fair.

iVillage Member
Registered: 09-08-2006
Sat, 09-20-2008 - 12:32pm

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Based on what I prioritize as important and fair, I formed an opinion, and we all have opinions and priorities.

 

iVillage Member
Registered: 05-14-2008
Sat, 09-20-2008 - 1:53pm

That's not an accurate statement--pass that on to the author.

It does tax income that is saved and invested--when it is earned. Apparently the Forbes proposal (new to me that you were even speaking about a specific proposal I thought we were talking about a flat tax in it's truest sense)......simply allows the income that is generated by the income that is saved and invested to not be taxed again until it is spent.

This is not done now. We penalize savings now by taxing the income it produces. I sacrifice a want "new car" to save and generate income "interest". But really what is the incentive? The value of the amount saved decreases over time and the interest paid after taxes doesn't make up for the decrease in value....inflation rate about 3% a year average interest rate paid on savings before taxes is about 1%.

If anything the Forbes idea is a great incentive to save and grow our capital instead of having to rely on foreigners to do that for us!

But I know if that means letting the savers, the so-called wealthy hold on to anything more it's a big no-go--matters not if it's good for the economy or not.

iVillage Member
Registered: 09-08-2006
Sat, 09-20-2008 - 2:17pm

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At first I thought

 

iVillage Member
Registered: 06-23-2008
Mon, 09-22-2008 - 9:57am

MONTANA MOM !

iVillage Member
Registered: 06-23-2008
Mon, 09-22-2008 - 10:02am

I'm sorry, I answered before I read the other posts and another had already explained what I did about flat tax.

MONTANA MOM !

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