Obama’s Class Warfare

[Mr. Big Dog 10,747]

FLAT TAX, WITH NO ABSOLUTELY NO EXEMPTIONS OR EXCLUSIONS, IS THE ONLY FAIR SOLUTION.

The very wealthy will not ever let that happen.

[JohnR! 5,495]

Either that or a flat federal sales/importation tax on everything and applicable to every corporation and individual. No more tax exemptions to special interests. Obviously that will never happen.

FLAT TAX, WITH NO ABSOLUTELY NO EXEMPTIONS OR EXCLUSIONS, IS THE ONLY FAIR SOLUTION.

[JohnR! 5,495]

Of course not. Why would I want to pay taxes on money I have stashed overseas, of which the US government has no knowledge?

The very wealthy will not ever let that happen.

[LostInAK 43]

Of course not. Why would I want to pay taxes on money I have stashed overseas, of which the US government has no knowledge?

The better question is why should you have to pay taxes on money you have stashed overseas?

[JohnR! 5,495]

Something the federal sales tax would take care of.

The better question is why should you have to pay taxes on money you have stashed overseas?

[LostInAK 43]

Something the federal sales tax would take care of.

I'm not following you. You stated:

Of course not. Why would I want to pay taxes on money I have stashed overseas, of which the US government has no knowledge?

If I have money that I want to put in a foriegn bank, why is it any business of the U.S. tax man?

[JohnR! 5,495]

My point is that a federal sales tax would preclude the need for anyone to stash money overseas. The only reason people hide money is so that you don't have to pay taxes on it. If we did away with income tax altogether and taxed at the sales point that need would no longer be.

I'm not following you. You stated:

If I have money that I want to put in a foriegn bank, why is it any business of the U.S. tax man?

[LostInAK 43]

My point is that a federal sales tax would preclude the need for anyone to stash money overseas. The only reason people hide money is so that you don't have to pay taxes on it. If we did away with income tax altogether and taxed at the sales point that need would no longer be.

Gotcha. Even more of a reason to change it to a national comsumption tax. People wouldn't be stashing money overseas. There would be no point in it. Although people may start buying things overseas to avoid paying the sales tax, which is fine as long as whatever they buy stays overseas. Anything imported in to the U.S. for personal consumption should be taxed of course.

[JohnR! 5,495]

:thumbs:

Gotcha. Even more of a reason to change it to a national comsumption tax. People wouldn't be stashing money overseas. There would be no point in it. Although people may start buying things overseas to avoid paying the sales tax, which is fine as long as whatever they buy stays overseas. Anything imported in to the U.S. for personal consumption should be taxed of course.

[I AM NOT THAT GUY 5,715]

Right. And your long term capital gains and qualified dividend tax rates would be 15% in that scenario. Last I checked, 15% was less than 18%.

Not only that. Your long term capital gains and qualified dividend tax rates are 15% even if you are in the 33% or 35% tax brackets. These tax rates go up to 20% for those that are in the 39.6% tax bracket. Either way, they are lower than the tax rates on earned income.

Ordinary dividends and interest are taxed same as regular income.

Dividends that are not qualified dividends. The following dividends are not qualified dividends. They are not qualified dividends even if they are shown in box 1b of Form 1099-DIV.

• Capital gain distributions.

• Dividends paid on deposits with mutual savings banks, cooperative banks, credit unions, U.S. building and loan associations, U.S. savings and loan associations, federal savings and loan associations, and similar financial institutions. (Report these amounts as interest income.)

• Dividends from a corporation that is a tax-exempt organization or farmer's cooperative during the corporation's tax year in which the dividends were paid or during the corporation's previous tax year.

• Dividends paid by a corporation on employer securities held on the date of record by an employee stock ownership plan (ESOP) maintained by that corporation.

• Dividends on any share of stock to the extent you are obligated (whether under a short sale or otherwise) to make related payments for positions in substantially similar or related property.

• Payments in lieu of dividends, but only if you know or have reason to know the payments are not qualified dividends.

• Payments shown in Form 1099-DIV, box 1b, from a foreign corporation to the extent you know or have reason to know the payments are not qualified dividends.

You are right on the rates for most Capital Gains. I should have checked that instead just relying on what I overheard on MSNBC,

[I AM NOT THAT GUY 5,715]

Here is what I overheard:

On Jan. 1, the top capital gains rate went from 15% to 20%. Plus there’s a 3.8% net investment income surtax for singles earning over $200,000 and couples earning over $250,000.

http://www.forbes.com/pictures/mjh45jgle/beating-the-23-8-tax/

[Mr. Big Dog 10,747]

Ordinary dividends and interest are taxed same as regular income.

You are right on the rates for most Capital Gains. I should have checked that instead just relying on what I overheard on MSNBC,

Correct - interest, ordinary dividends and short term capital gains are taxed the same as earned income. Only long term capital gains (gains on investments held for more than a year) and qualified dividends (basically US dividends on common stock you held for 60 out of the 121 days beginning 60 days before the ex date - it's 90/181 for preferred stock). In other words, dividends from most long term investments are qualified dividends and thus taxable at the lower rates.

[The Nature Boy 4,224]

Want the poor to have skin in the game? Raise wages and they'll have skin in the game. Not that they don't have skin in the game already. The poor pay, for example, more of their meager incomes in payroll taxes than I and those situated like me or better do. That is because on part of my income, my social security tax is exactly zero. The poor don't have any part of their income not subjected to social security taxes. They pay the full 6.2% on every penny they earn.

Add in taxes on forties and the Purchase of Lottery tickets I bet it's 40%

[I AM NOT THAT GUY 5,715]

Want the poor to have skin in the game? Raise wages and they'll have skin in the game. Not that they don't have skin in the game already. The poor pay, for example, more of their meager incomes in payroll taxes than I and those situated like me or better do. That is because on part of my income, my social security tax is exactly zero. The poor don't have any part of their income not subjected to social security taxes. They pay the full 6.2% on every penny they earn.

I think you are forgetting the "poor" get back a share of the FICA tax as a refundable credit when they file for EITC, even if they don't have a qualifying dependent.

[Mr. Big Dog 10,747]

Add in taxes on forties and the Purchase of Lottery tickets I bet it's 40%

The lottery sure taxes the poor man. And woman.