I was talking with someone the other day, trying to explain how stupid it was to tax corps because they will just pass the tax on with a premium. He understood, but still did not like it. He came back with then shouldn't we tax those making mega earnings off the corps, not the actual corps?
It left me thinking about an alternative simple concept. I want simpler taxes and many want everyone to at least pay the same % if not those making more a little more (progressive) taxation.
We already assess values of many things (cars, houses, etc.) for taxation.
Why not simply impose a tax on NET WORTH on say Dec 31st of the year. I know everyone will shuffle to take advantage of any new rules, but here is the concept. Budget for what you need (a different discussion, please) and then distribute this as an even % of actual net worth.
If you, for example, are 30, have $5000 in the bank, "own" a home worth $200,000 that you owe $150,000 on and own your car that is worth $6000 outright, then we can tax you on that % of $50,000 for the house, $5000 cash and $6000 car or whatever else is appropriate (large items, accumulated wealth). The bank pays the tax on the other $150,000 on the house along with all their other assets. If they distribute to shareholders or fat cats, they pay their %. The only way to hide money beyond borders is to spend it on something consumable, that will not exist at the end of the year (food, fuel, etc.) I guess you could still tax bad fuels to pay for future clean up that the gov will do to make them on par with good fuels, etc.
Of course you will still have to deal with borders and foreign banks, but you get my concept. If our goal is to tax wealth, something that actually exists, it makes sense to do just that.
I have more thoughts, and I can go on and on as some of you know. Looking for a discussion on appropriate taxation, not politics, not what we will spend it on, but if we are going to take any, what would be a good system. If we need little then we could lower the %, more it could be higher, that is a different discussion.
What do you think of this somewhat simple system or what are some alternatives. I know that any system will have band aids to correct imbalances, but keeping those to a minimum is important. Also keep in mind that just because the bank paying taxes will increase the interest rates they charge, does not mean the system does not work, it just changes how one pays for something they want to buy and how we skim the top to pay for society. Discuss it, criticize, don't bash.
It really doesnt sound all that simple....houses and cars change in value...so you need a mechanism to appraise value.....what about jewelry? You have to take into effect depreciation and appreciation. What about cash? Would the new tax haven be under your mattress? Investments would be a nightmare. Do you only tax when sold? Those are just the beginning of the complications I see. Taxing savings especially for seniors who are no longer earning more income seems unfair.
Like stated above, nightmare to value assets until you sell, like they do now.
And even now, taxes on sales can be tainted, like when Hickenlooper sold property valued too high for tax credits to a nature group.
And so much of the assets are hard to liquidate. You have a 10,000 acre cattle ranch worth $2,000,000. If you don't earn enough selling cattle and hay this year, will you have to start selling off property? And who wants to buy that land when thye know thye will have to pay a wealth tax on it. Housing prices would continue to plummet.
Will everyone start renting? People start leasing cars? Will the rich just spend money on consumables because they know they wouldn't be taxed. Sell your gold and buy fine wine.
Instead, I like a 10% national sales tax and 10% income tax. No credits, loopholes, discounts, etc. And 10% combined for Social Security and Medicare/Medicaid. Also 10% corporate income tax to with the same conditions.
Thomas Sowell: There are no solutions, just trade-offs.
This would be disastrous. We would have a massive bubble as people consumed, but there would be huge incentives to be in debt. Why would you save or invest if you are only going to be taxed on it each and every year. Capital would dry up, and businesses would greatly suffer. This would be similar to the property taxes corporations are already taxed on their property every year. If you own a desk, you buy it once, and are taxed on it every year until you sell it or it goes in the trash. BAD idea.
A consumption tax or the FAIR tax ([url=http://www.fairtax.org" onclick="window.open(this.href);return false;]http://www.fairtax.org[/url]) would be the only proper way to do this. We as a society should encourage wealth and wealth building, not penalize it.
Too bad future generations aren't here to see all the great things we are spending their $$ on!!
RenegadeCJ wrote: This would be disastrous. We would have a massive bubble as people consumed, but there would be huge incentives to be in debt. Why would you save or invest if you are only going to be taxed on it each and every year. Capital would dry up, and businesses would greatly suffer. This would be similar to the property taxes corporations are already taxed on their property every year. If you own a desk, you buy it once, and are taxed on it every year until you sell it or it goes in the trash. BAD idea.
A consumption tax or the FAIR tax ([url=http://www.fairtax.org" onclick="window.open(this.href);return false;]http://www.fairtax.org[/url]) would be the only proper way to do this. We as a society should encourage wealth and wealth building, not penalize it.
Sorry, have to agree, it would crash the economy fast.
The left is angry because they are now being judged by the content of their character and not by the color of their skin.
In the USA- once you have paid taxes on your wages, you are supposed to be able to keep that wealth you created unless you make more money with your money- then you owe taxes on the money you made with your money, this is the penalty for saving and investing.
Unless you buy property- then you get taxes on that value every year.
Unless you buy a car- then you get taxed for license plates and gas and tires.
Unless you start a business- then you get all kinds of taxes.
BearMtnHIB wrote: In the USA- once you have paid taxes on your wages, you are supposed to be able to keep that wealth you created unless you make more money with your money- then you owe taxes on the money you made with your money, this is the penalty for saving and investing.
Unless you buy property- then you get taxes on that value every year.
Unless you buy a car- then you get taxed for license plates and gas and tires.
Unless you start a business- then you get all kinds of taxes.
Unless you invest it- you'll get taxed.
Unless you die- then your estate pays the taxes.
Uhhh- I think I'll buy gold!
If you buy your gold in Colorado, you have to pay sales tax on it. :Whistle
Thomas Sowell: There are no solutions, just trade-offs.
BearMtnHIB wrote: In the USA- once you have paid taxes on your wages, you are supposed to be able to keep that wealth you created unless you make more money with your money- then you owe taxes on the money you made with your money, this is the penalty for saving and investing.
Unless you buy property- then you get taxes on that value every year.
Unless you buy a car- then you get taxed for license plates and gas and tires.
Unless you start a business- then you get all kinds of taxes.
Unless you invest it- you'll get taxed.
Unless you die- then your estate pays the taxes.
Uhhh- I think I'll buy gold!
If you buy your gold in Colorado, you have to pay sales tax on it. :Whistle
Sorry, have to agree, it would crash the economy fast.
