[Sigequinox]

Originally Posted by BicoastalAnn

Ben Carson just announced his tax plan:

Replace the tax code with a true flat tax – no deductions, tax shelters or loopholes.
Tax all income at a uniform 14.9 percent rate.
To protect those rising from poverty, apply the flat tax only to income above 150 percent of the Federal Poverty Level (FPL). For example, a family of four will not pay the 14.9 percent tax on their first $36,375 of income.
Treat everyone in America as citizen-owners and require those whose income is at or below 150 percent of the FPL to make a de minimis tax payment annually.
Tax income only once: no more double taxation of capital gains, dividends and interest income at the personal level.
Eliminate deductions for home mortgage interest, charitable giving and state and local taxes. The overwhelming majority of Americans do not benefit from these itemized deductions.
Eliminate the Alternative Minimum Tax (AMT). Under the current tax system, the AMT forces middle-class Americans to calculate their tax liability twice and punishes them by requiring them to pay the larger of the two tax bills.
Abolish the death tax in its entirety.

Thoughts? Not sure how I feel about eliminating deductions for home mortgage interest, charitable giving and state/local taxes. That's going to make home ownership slightly less appealing for people on the cusp of renting/buying and discourage charitable giving. And won't that mean you'll get taxed twice on your income - at the state and federal level - without that deduction?

The death tax is a joke anyway - most people won't feel it and those who will use tax shelters to avoid it - but it seems extreme to completely abolish it.

Source of plan: https://www.bencarson.com/issues/tax-reform

I definitely disagree with removing deductions. I would like to hear his reasoning behind how this doesn't help the middle class.

Either way, these are incentive driven deductions. Who cares if the rich are able to exploit the deduction favorably for themselves? I certainly don't think researches at Memorial Sloan Kettering Cancer Center care where the 2 million $$ check came from or what it's intentions were. All that matters are that these critical foundations and innovators get the money they need.

Death tax is the most disgusting concept I've ever heard of. It should be abolished in its entirety. The piece of paper its written on should be shot, set on fire and it's ashes poured into concrete and sunk to the bottom of the pacific ocean. CT vehicle tax should suffer the same fate, but that will never happen.

[BicoastalAnn]

Originally Posted by mlassoff

It doesn't matter what tax plan Ben Carson has. He's not winning the nomination.

True.

[JayCT]

Originally Posted by BicoastalAnn

Ben Carson just announced his tax plan:

Replace the tax code with a true flat tax – no deductions, tax shelters or loopholes.
Tax all income at a uniform 14.9 percent rate.
To protect those rising from poverty, apply the flat tax only to income above 150 percent of the Federal Poverty Level (FPL). For example, a family of four will not pay the 14.9 percent tax on their first $36,375 of income.
Treat everyone in America as citizen-owners and require those whose income is at or below 150 percent of the FPL to make a de minimis tax payment annually.
Tax income only once: no more double taxation of capital gains, dividends and interest income at the personal level.
Eliminate deductions for home mortgage interest, charitable giving and state and local taxes. The overwhelming majority of Americans do not benefit from these itemized deductions.
Eliminate the Alternative Minimum Tax (AMT). Under the current tax system, the AMT forces middle-class Americans to calculate their tax liability twice and punishes them by requiring them to pay the larger of the two tax bills.
Abolish the death tax in its entirety.

Thoughts? Not sure how I feel about eliminating deductions for home mortgage interest, charitable giving and state/local taxes. That's going to make home ownership slightly less appealing for people on the cusp of renting/buying and discourage charitable giving. And won't that mean you'll get taxed twice on your income - at the state and federal level - without that deduction?

The death tax is a joke anyway - most people won't feel it and those who will use tax shelters to avoid it - but it seems extreme to completely abolish it.

Source of plan: https://www.bencarson.com/issues/tax-reform

Eliminating the deduction on home mortgage interest is a huge problem for me. It encourages people to make an investment in their community and helps keep them engaged financially. I would strongly oppose doing that. Also eliminating the charitable deduction would decrease people's giving to charities so I would also be against that too. I could accept the elimination of the state and local tax deductions but even that serves a purpose. He definitely is not thinking of the middle class with his proposal so I guess he has lost my support completely. Jay

[papafox]

Originally Posted by mlassoff

So basically the middle class pays more and the rich pay less? Another winner from the right.

It doesn't matter what tax plan Ben Carson has. He's not winning the nomination.

Do you have any reading comprehension skills? Seriously??


THE FIRST $36K income is TAX FREE under that proposal. That is NOT the case with the current tax system.


Anyone making less than $36K (or more even) would pay LESS tax under that proposal that they do currently.


Like you said, Carson wont get the nom, but to say that a poor or middle class family would pay more under that proposal is factually inaccurate.

[JayCT]

[quote=papafox;42502798]

Originally Posted by mlassoff

So basically the middle class pays more and the rich pay less? Another winner from the right.







Do you have any reading comprehension skills? Seriously??


THE FIRST $36K income is TAX FREE under that proposal. That is NOT the case with the current tax system.


Anyone making less than $36K (or more even) would pay LESS tax under that proposal that they do currently.

I am not sure what you are talking about. I know someone making under $36,000 per year and they pay no Federal taxes. Part of that income comes from Social Security but that is taxed anyway. Jay

[Mike 75]

You can't really have a flat tax with deductions and credits. It defeats the whole premise behind it, namely to simplify the tax system.

[BicoastalAnn]

Originally Posted by Sigequinox

I definitely disagree with removing deductions. I would like to hear his reasoning behind how this doesn't help the middle class.

Either way, these are incentive driven deductions. Who cares if the rich are able to exploit the deduction favorably for themselves? I certainly don't think researches at Memorial Sloan Kettering Cancer Center care where the 2 million $$ check came from or what it's intentions were. All that matters are that these critical foundations and innovators get the money they need.

Death tax is the most disgusting concept I've ever heard of. It should be abolished in its entirety. The piece of paper its written on should be shot, set on fire and it's ashes poured into concrete and sunk to the bottom of the pacific ocean. CT vehicle tax should suffer the same fate, but that will never happen.

Yes I think that's the best way to put it... incentive-driven deductions. Agree they shouldn't go away.

I could take the death tax or leave it. Wealthy people put practically everything they own in trusts anyway.

[Sigequinox]

Originally Posted by JayCT

Eliminating the deduction on home mortgage interest is a huge problem for me. It encourages people to make an investment in their community and helps keep them engaged financially. I would strongly oppose doing that. Also eliminating the charitable deduction would decrease people's giving to charities so I would also be against that too. I could accept the elimination of the state and local tax deductions but even that serves a purpose. He definitely is not thinking of the middle class with his proposal so I guess he has lost my support completely. Jay

Exactly.Not only do home purchases invest in the community, the home interest deduction incentivises stability. The exact opposite of welfare.

While I like the idea of a non-politician in the white house, Carsons lack of understanding of both the political landscape and needs of the middle class are apparent and troubling. Trump is the only non-political candidate that is viable IMO. His experience with business, economy, job creation, real estate etc would be hugely beneficial. Perhaps Ted Cruz on the ticket for some maturity. Ultimately this country needs a "doer", not a loyal party member (everyobne,m esp. Hillary) or someone whose only looking to get re-elected (any career politician) or someone as inexperienced as carson.

[Sigequinox]

Originally Posted by BicoastalAnn

Yes I think that's the best way to put it... incentive-driven deductions. Agree they shouldn't go away.

I could take the death tax or leave it. Wealthy people put practically everything they own in trusts anyway.

Only very wealthy can afford the whole trust route from what I understand. I think it's wrong in principle. I think its disgusting in principle actually. One pays taxes their whole life. To pay taxes even in death is totally jacked up. If the assets are over the amount, but the survivors don't have enough cash to pay the taxes (which have already been paid once already), they would be forced to forfeit assets. It's like winning a dream home contest only with the estate your family broke their back to ALREADY pay for and provide.

[BicoastalAnn]

Originally Posted by Sigequinox

Only very wealthy can afford the whole trust route from what I understand. I think it's wrong in principle. I think its disgusting in principle actually. One pays taxes their whole life. To pay taxes even in death is totally jacked up. If the assets are over the amount, but the survivors don't have enough cash to pay the taxes (which have already been paid once already), they would be forced to forfeit assets. It's like winning a dream home contest only with the estate your family broke their back to ALREADY pay for and provide.

The estate tax is only going to hit estates that total more than $10 million (if you die this year) for a married couple. If filing separately, it's half that but the spouse inherits the estate tax-free anyway. Couples who are approaching that amount can give each child $28k each year tax-free. Those people can afford the trust route and they do it.

The merits of the tax is a different matter, but in reality it doesn't affect most people.