"HeyBub" wrote in
:

Han wrote:

We need to simplify the tax code by eliminating many of the loopholes
and preferences, and tax the wealthier at higher effective rates.
Both corporations and individuals. Payroll taxes have been going up,
as have state and local as well as sales taxes. That has put more
and more of the burden on lower wage earners, while higher wage
earners and those not relying on earned income have gotten a break.
It's time to put more purchasing power in the hands of lower income
people.

And, while not really rich, I always have been comfortable.

The REAL inequity is that 49% of the population pays NO taxes at all!
How is that fair?

Obviously that is NOT true. It only holds for federal income taxes, and
is in part due to the fact that we as society through our representatives
have created a tax code that gives credits for living. Employed people
pay payroll taxes (some of that paid by the employer), they pay state
taxes and sales taxes, and whether or not they own their homes, they pay
property and school taxes.

I'm with you on eliminating loopholes. There are two goals of the tax
system as it is currently implemented:
1. To raise revenue.
2. To foster (or suppress) social activity.

And to foster or suppress economic activities (this is important too).
We all directly or indirectly agreed to the system at some point. But
now the system has become burdensome by complexity and inequitable
because it created (intended AND unintended) loopholes and special
circumstances. Some of those were created by hanky panky. There should
be an independent nonpartisan committee that examines the "special
categories" and explains who and what the consequences are of each
special condition in the tax code.

For example, we think that home ownership is a worthwhile thing, so we
give a tax deduction for mortgage interest payments. We think smoking
is bad, so we put a confiscatory tax on cigarettes.

Only if you are willing to give up the social goals sometimes
associated with taxation will you be able to make the tax system
"fair."

Yes indeed!! The social and economic goals need to be reexamined over
time. Is this or that special condition still what we all want? Or
shuld home mortgage interest over a certain amount NOT be deductible
anymore? The AMT was a way to limit deductibility, but the asses didn't
put in a cost of living escalation clause, so now the AMT is applied to
people who aren't that wealthy. Is that right?

I'm sure you and I and others can keep going on ...

--
Best regards
Han
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