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Why is it that taxpayers who don't work for their money are not taxed on the part of their receipts that they invested in order to receive their gross receipts, but those who work for their money are not allowed any credit for what they invest to receive those earnings?
Just wondering??
When put into perspective, a few words come to mind such as slavery, bondage and serfdom.
Why is it that taxpayers who don't work for their money are not taxed on the part of their receipts that they invested in order to receive their gross receipts, but those who work for their money are not allowed any credit for what they invest to receive those earnings?
Just wondering??
When put into perspective, a few words come to mind such as slavery, bondage and serfdom.
Quote:
Originally Posted by msaRick
Don't understand. Could you give an example?
This is exactly right. If you invest 8 ours of time into a job, and your time is worth $8 an hour, you get taxed on $80. But if you invest $80 into stocks and sell them later for $80, you pay no tax. When you invest cash, you are only taxed on the outputs minus the inputs. When you invest labor, you are taxed only on the outputs regardless of the inputs.
The income tax is essentially a 100% tax on labor and that tax is the main reason we have two huge problems that are quickly becoming political hot potatoes. Illegal immigration and the trade deficit. Get rid of the tax on labor and there will be no advantage to hiring illegals who often get paid under the table or under the tax threshold of our progressive tax system. You also take away the advantage workers have in other countries to work tax free.
You discourage what you tax and the income tax is discouraging American High-Income labor.
You discourage what you tax and the income tax is discouraging American High-Income labor.
Only up to a point. If you get rid of taxes it doesn't follow that automaticly jobs will come back to the US. Employers and businesses look for other costs besides labor costs (hourly/yearly wages) when making decisions.
If the price of something were the only factor, then nobody would buy anything but low end products (which clearly they do not), and this applies just as much to the labor market as anywhere else. Individual consumers differ on how "price conscious" they are, and so do companies. When you run a high-tech manufacturing plant, you don't necessarily want workers that will only work for 6 dollars an hour- you want workers that will work competently and add value to the company so that it can give the investors the return on their investment. If that involves paying more in FICA taxes to get somebody to work for 16-24 dollars an hour, companies will do it, if it makes business sense.
Only up to a point. If you get rid of taxes it doesn't follow that automaticly jobs will come back to the US. Employers and businesses look for other costs besides labor costs (hourly/yearly wages) when making decisions.
If the price of something were the only factor, then nobody would buy anything but low end products (which clearly they do not), and this applies just as much to the labor market as anywhere else. Individual consumers differ on how "price conscious" they are, and so do companies. When you run a high-tech manufacturing plant, you don't necessarily want workers that will only work for 6 dollars an hour- you want workers that will work competently and add value to the company so that it can give the investors the return on their investment. If that involves paying more in FICA taxes to get somebody to work for 16-24 dollars an hour, companies will do it, if it makes business sense.
I agree... that is why I used the word discourage - not eliminate. The fact remains that a 100% tax on labor puts US workers at a large disadvantage. My point is that the same people who advocate higher income taxes complain about jobs being "exported."
The fact remains that a 100% tax on labor puts US workers at a large disadvantage. My point is that the same people who advocate higher income taxes complain about jobs being "exported."
Yeah, taxation on labor is just another form of control....
I also find it ironic that people think income taxes on labor is good for the economy, yet another reason to do away with the brainwashing, er, uh, i mean taxation on labor....
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