Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
You actually think a net worth tax would decrease the IRS size & scope?! Hahahahahahaha!!!!!
They'd need to hire a whole department just for your new tax idea to validate the net worth balance sheets being sent in...make sure no wealthy people are leaving off a 3rd home or an off-short account or some of the stocks they hold. That's actually a plan for government job expansion, if anything. Get real.
It sounds like you have no idea how large and pervasive the IRS already is, huh?
Our current tax code is so massive and arcane that the "Service" needs to maintain an army just to keep it straight within the government.
How would you suggest "The Rich" pay their fair share?
what do you mean by a 1% net worth tax???...how often???
an example a lower middleclass guy get a house valued at 100k for puts 20% down and gets the mortgage...10 years later (making extra payments) the house is paid off and now valued at 200k...his net "worth" is over 200k (just by the value of his home)....is he going to get SCREWED for an extra 2k every year...or just once (meanwhile he is paying 6k or more with property taxes)
so define "net worth"... and define how often this tax applies
I went into the town when I got my home last year and ask about property tax and remodeling.
Their answer shock me: They said, when you remodel, your home value increase, and it is only fair you pay more property tax because your home worth more now. WTF?!?!?
So I am going to get taxed for the 10, 20, or 30 years while I living in here and then tax again on capital gain? So assume, my remodeled kitchen cost me 50k, and add 100k to the value of the house, and this added 100k will increase my tax by say $1000 a year.
So if I live in the house for 20 years, I have to pay $1000 extra a year (assume no tax property tax increase for the next 20 years) for a total for 20k. So in just 20 years, my 50k increase in value, 40% already go into tax. And of course, that kitchen probably require another remodel again.
If you give the IRS the extra requirement to figure and track net worth, you are living in la la land if you think they won't use it to expand greatly.
How is singling out a class of people because some politically motivated bureaucrats decided they have too much money, "fair"?
Lets skip the schemes for now and figure out ways for our government to operate on less of our money instead working so hard figuring out ways to give it more
We have tried that...have you been watching the news for the last two weeks? People like Allen West sold us out.
The only way that is going to happen is to elect Tea Party Patriots as a majority of the Senate and also the White House. That ain't gonna happen any time soon. Sorry.
No one is going to pack up and leave the world's greatest nation because they have to pay ONE MEASLY PER CENT.
Remember the wealthy would also pay a greatly REDUCED income tax.
Also, as I've said before, the point of the net worth tax is to appease the left who feel that the rich don't pay their fair share.
If you don't give a little in these sorts of debates then you will never be able to tackle the problem of fast growing debt and deficits.
The point of taxes is to fund government, which should be a "right sized" government. It's not to appease the left or right. Again, get real.
Furthermore, 1% net worth taxes aren't measley. Let's take a pretty common "millionaire next door" scenario: Joe started a business and sold it for $7,500,000 after 30 years in the biz. He paid approx 30% taxes on the income from the sale, leaving him with $5,000,000 to invest & keep. He now does a bit of consulting which pays around $30k per year, just to keep his mind sharp & stay active in his industry. The rest he draws 1-2% on his business sale investments to live on, giving him an annual income of $80-100k. He owns his home outright, but after 30 years, it's now worth $750k. Under your proposal, he would save about $8k per year on the income tax reduction, but get wholloped with a $57,000 net worth tax bill EVERY SINGLE YEAR. That's over 60-70% of the income he lives on (consulting + draw). Not good for Joe. Not good for America. Joe's moving to Grand Cayman where he can preserve the rest of his nest egg. He thinks it's beyond unfair, after already paying $2,500,000 in income taxes on the business sale, to be continued to be $50k'ed to death for the rest of his life.
I went into the town when I got my home last year and ask about property tax and remodeling.
Their answer shock me: They said, when you remodel, your home value increase, and it is only fair you pay more property tax because your home worth more now. WTF?!?!?
So I am going to get taxed for the 10, 20, or 30 years while I living in here and then tax again on capital gain? So assume, my remodeled kitchen cost me 50k, and add 100k to the value of the house, and this added 100k will increase my tax by say $1000 a year.
So if I live in the house for 20 years, I have to pay $1000 extra a year (assume no tax property tax increase for the next 20 years) for a total for 20k. So in just 20 years, my 50k increase in value, 40% already go into tax. And of course, that kitchen probably require another remodel again.
This is how much bs those people live in.
Hint....saves your receipts including labor.
This will be a write off on capital gains when you sell.
The point of taxes is to fund government, which should be a "right sized" government. It's not to appease the left or right. Again, get real.
Furthermore, 1% net worth taxes aren't measley. Let's take a pretty common "millionaire next door" scenario: Joe started a business and sold it for $7,500,000 after 30 years in the biz. He paid approx 30% taxes on the income from the sale, leaving him with $5,000,000 to invest & keep. He now does a bit of consulting which pays around $30k per year, just to keep his mind sharp & stay active in his industry. The rest he draws 1-2% on his business sale investments to live on, giving him an annual income of $80-100k. He owns his home outright, but after 30 years, it's now worth $750k. Under your proposal, he would save about $8k per year on the income tax reduction, but get wholloped with a $57,000 net worth tax bill EVERY SINGLE YEAR. That's over 60-70% of the income he lives on (consulting + draw). Not good for Joe. Not good for America. Joe's moving to Grand Cayman where he can preserve the rest of his nest egg. He thinks it's beyond unfair, after already paying $2,500,000 in income taxes on the business sale, to be continued to be $50k'ed to death for the rest of his life.
Under your scenario Joe would have hit Cayman ALREADY. (Remember he is overtaxed now). Perhaps Joe should pay zero.
My plan would be to eliminate almost all tax deductions and go to stepped income tax rates that are below today's rates. And also bump up the definition of rich as $250k just isn't "rich" in most of our cities anymore.
Perhaps 5% income tax < $100k
Somewhere in the 8-10% tax range for $100k-499k
Between 15-20% for $500k+
Only allow mortgage and charitable deductions (being the good Republican I am, believe the "people" should support the needy on their own through donations to churches, Salvation Army, food kitchens, etc vs so many government programs) and only allow 100% deducted for those making under $1M. Over $1M, cap it.
My plan would be to eliminate almost all tax deductions and go to stepped income tax rates that are below today's rates. And also bump up the definition of rich as $250k just isn't "rich" in most of our cities anymore.
Perhaps 5% income tax < $100k
Somewhere in the 8-10% tax range for $100k-499k
Between 15-20% for $500k+
Only allow mortgage and charitable deductions (being the good Republican I am, believe the "people" should support the needy on their own through donations to churches, Salvation Army, food kitchens, etc vs so many government programs) and only allow 100% deducted for those making under $1M. Over $1M, cap it.
See...that is the problem.
Your plan is fine...if your a reasonable conservative.
Unfortunately in the real world you have to deal with a democrat majority senate and a socialist president.
You have to throw them a bone if you want to see any of your reasonable suggestions enacted.
That is EXACTLY why we couldn't get a REAL debt deal done yesterday.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
