Kurt Ullman wrote in
m:

In article ,
Han wrote:

"
Now how are we going to get that amount from the roughly half of all
filers who now do NOT owe income taxes? Or better, where would they
get that money from?

Which is one reason why taxes won't solve the problem, even amongst
the rich. You could tax the top 5% at 100% and still not cover the
deficit, especially after SS surplus goes away in a year or two.
Although one interesting thing is that most of the 50% (around 40%) of
those who don't owe taxes actually have a negative tax rate because of
the money the get back in things like earned imcome credit, etc.

I agree that taxes won't solve the deficit problem by themselves,
although they will have a major impact. "Loopholes" need to be closed
and inefficient government rooted out. DAMHIKT - I retired rather than
filling out those ridiculous forms (modified™) again and again, taking
those stupid tests and verifying that I know stuff.

I really think (and the "socialist" in me agrees) that paying taxes
should be in relation to your ability to contribute. If the income
distribution in the US was much, much more flat, a flat tax (in % of
income, not a set amount) would be defensible, but it isn't.

But neither is the current system where the top 1% pay twice the %age
of income taxes as they have %age of income (34,3% of taxes versus
16.8% of income. I find it hard to suggest that rich aren't paying
their share when they pay 34% of taxes and 40% of the worst off
actually have a NEGATIVE tax rate because the credits are more than
their taxes.

If one's income is so low, it is totally eaten up by housing, food and
other necessities (defined narrowly), why would you have to pay taxes
too? Even the flat taxers would institute a no tax zone, so to speak.
In order to protect their condition, the rich do have to pay a greater
share.

Before we get to the flat tax, let's eliminate the tax loopholes, and
we should first discuss whether charitable contributions, mortgage
interest, state & local taxes should be deductible. After all that's
what brought my income taxes down to less than 14% of AGI.

Yep. Although I can guarantee that won't happen, especially state and
local taxes since the CongressCritters from New York and other
high-tax states would pitch a major bitch, as would the builders and
mortgage types. BTW: Those in the top brackets already are finding out
about that since deductions for taxes and charitable contributions
already fade out above a certain income.

Well, I consider myself relatively well-off, but I'm far from that point.
And I have fairly little mortgage interest to pay.

--
Best regards
Han
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