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yep, and a 16 yr old working part time at KFC gets a w2, even though he only earns less than 5k a year---so you would nab him too???
what about the kid who mows lawns, for $20 a lawn----
what about the handyman who works off the books
what about the poolboy----do they not earn an income
welfare is an income too
food stamps are also an income
what about the drug dealer---is he not earning an income
does the babysitter, who makes $5/hr for maybe 3 hours a week----will she get a w2 too??? is it not still income????
does that include income from places outside of the usa--not on a w2 or 1099?????
to sit here and say 'all income' and 'no exceptions' is really far reaching
Anyone under the age of 18 would be fine. I don't think we have a labor pool thats so large at 15 and 16 that its going to cause a national address.
Seems like taxing welfare and food stamps as federal income is stupid. Drop that.
Babysitters under the age of 18, that aren't using it as a profession. And yes, if you make 20 dollars a night babysitting while in college, you are expected to report that income. There are those that work under the table, but just like the 15 and 16 year old workers, I think you're focusing on such a small number, it isn't a deal breaker.
And yes, if income is made inside the United States, by foreign investors, or corporations, their income should be taxed as well.
The poster I was responding to "whats my definition of income" I gave him an example, anything on the W2. But if you read down a bit further, I said "any personal income".
Now, as I said, I would exempt anyone who is 16 working part time. Thats teaching them good work ethics, and I'd wager to bet less than 1% of the total taxable income in this country.
The federal government taxes every item I listed. They also have TONS of hidden taxes, on things like cars etc...
Of course you would increase taxes on the poor and middle class.. If you go from not paying taxes, to paying taxes, thats an increase. Why should they not pay taxes like the rest of society?
The poor and middle class do pay taxes like the rest of society. This would DRASTICALLY increase taxes on the poor and the middle class in order to DRASTICALLY cut the taxes for the very wealthy. That would go over VERY badly.
I have always been for the progressive income tax structure we have had (with some adjustments) however I heard something the other day that might just change my mind.
There was a discussion of a national sales tax. (Called the Fair Tax)
Now my understanding of a sales tax is that it is the most regressive tax out there but this time there was a twist I had never heard (those that support FT may already know about this)
The guy was advocating a pre-bate where each person would receive a check at the start of the year equal to the tax rate times the top of the poverty level.
That basically means the poor would pay no effective tax rate, and the middle class would have mitigated rates and all other goods and services would be subject to the tax rate.
It would encourage savings and eliminate shenanigans by the congress and lobbyists. Plus it would cause every Americans to actually see what they were paying in taxes every year.
Fair tax is a stupid idea, and puts an undue burden on the lower and middle income Americans.
Generally, those who make below 30,000 a year have to spend almost 100% of their income just to make ends meet. Rent, food, everything costs them most if not all of their income.
So they would effectively be paying a tax rate of 100%, or close to it.
While someone making 250,000 a year can live quite comfortably on 100,000 dollars, and put the other 150,000 back in a off shore account, that does the US no good, and isn't taxed.
7% period. no deductions, government would have to start living on a budget.
Don't see anyway that could be don e without gutting Military spending, among other things. Not to mention that would still increase taxes on the poor and middle class.
Personally though, I doubt it will ever happen. There is so much corruption and random taxes and processes everywhere that allow the government to avoid being transparent in the current tax system. This would simplify it too much and leave them with their pants down for all to see. As much as I would love to see a simplified tax system, I honestly think we have a better chance of becoming a dictatorship than getting the tax system changed as such. That in and of itself is scary.
That observation is spot on.
"A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. After that, the majority always votes for the candidate promising the most benefits with the result the democracy collapses because of the loose fiscal policy ensuing, always to be followed by a dictatorship, then a monarchy." - Elmer T. Peterson paraphrasing Alexis de Tocqueville in the December 9th, 1951 edition of The Daily Oklahoman
Alexis de Tocqueville recognized the problem nearly two centuries ago. We're seeing it play out now.
Fair tax is a stupid idea, and puts an undue burden on the lower and middle income Americans.
Generally, those who make below 30,000 a year have to spend almost 100% of their income just to make ends meet. Rent, food, everything costs them most if not all of their income.
So they would effectively be paying a tax rate of 100%, or close to it.
While someone making 250,000 a year can live quite comfortably on 100,000 dollars, and put the other 150,000 back in a off shore account, that does the US no good, and isn't taxed.
Bad jue jue.
I guess you read "fair tax" and stopped?
did you not see the part about the pre-bate?
EVERYONE gets the tax rate times some predetermined amount (like the upper limit of the poverty level) at the start of each year.
I agree with you that the traditional approach to the fair tax is bad for poor people, but this change, ends that issue.
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