Anti Bridenstine ads

[EFsDad]

That is why in my scenario I used effective tax rate. Obviously there are many factors that could determine the effective rate. No matter what tax structure/system that is in place there will always those trying to get away with not paying taxes. Tax planning will be a key, and as a CPA, it keeps me employed.

Then I need to mention that anyone that makes 3 mil and has an effective tax rate of 35% needs to get a new CPA. With that said, how much more could you help someone with investing and planning for the future that you now spend trying to change the past to not pay taxes?

 

[OliverKlohzoff]

I am extremely disturbed by the massive volume of constant TV commercials on every channel, all hours of the day, by this guy. There is some HUGE !!! money backing him to pay for all this media. That kind of money means he has been bought out by somebody. Question is: Who ?

 

[ez bake]

I am extremely disturbed by the massive volume of constant TV commercials on every channel, all hours of the day, by this guy. There is some HUGE !!! money backing him to pay for all this media. That kind of money means he has been bought out by somebody. Question is: Who ?

Which commercials - for Bridenstine or against him?

 

[tntrex]

I believe he wanted a 30% flat tax on purchased goods. I know there are some different factors but the thought of higher tax on middle/lower income is based on this:

1. Family makes 3,000,000 a year, they spend 1,500,000 on purchases and invest the rest. Their effective federal rate income tax rate is 35%, sales tax rate is 8%. Under the current income tax method total tax is = $1,120,000 under the flat tax = $450,000.

2. Family makes 100,000 a year and spends 90,000 on purchases and invest the rest. Their effective federal rate income tax rate is 20%, sales tax rate is 8%. Under the current income tax method total tax is = $27,200 under the flat tax = $27,000.

3. Family makes 50,000 a year and spends 50,000 on purchases, none to invest. Their effective federal rate income tax rate is 15%, sales tax rate is 8%. Under the current income tax method total tax is = $11,500 under the flat tax = $15,000.

So people see this as a signficant tax break for the upper class. Now the more money they spend the less they will save. On the other hand for low income families under the scenario above they are able to use $38,500 ($3,208.33 a month) under the income tax method and it would be $35,000 ($2,916.66 a month) under the flat tax. Therefore, the high income individuals to invest $1,5 mil which will continue to accumulate annually plus interest and the lower income individuals will be getting poorer because they are seeing $300 less a month to spend.

Are these numbers/comparisons a joke? Please tell me these are a joke.

 

[poopgiggle]

Here's the deal with the Fair Tax:

Consumption taxes are understood to be regressive (they tax poorer people more) by basically anyone who has taken an economics class. Poor people spend almost all of their income on stuff, i.e. food. Wealthy people have wealth, meaning that they hardly spend any of their money on consumption. Therefore, poor people are taxed more heavily by a flat consumption tax.

The Fair Tax "solution" is to offer a prebate of x dollars, which will counteract the tax on basic consumption by poor people. While this works for the really low income brackets, it does little to alleviate the extra tax burden on the middle class. Meanwhile, rich people still hardly spend any money (comparatively) on consumption. So basically this shifts all the tax burden onto the middle class.

The pot of gold at the end of the Fair Tax rainbow is that it would reduce the bureaucratic overhead involved in enforcing the tax code and processing tax returns. However, it is unclear how the savings on the IRS would counteract the loss in revenue from the Fair Tax. This would mean cutting big-ticket items like Social Security and defense, which are political atom bombs even if you don't agree with them.

So basically the Fair Tax is another pile of demagogic Tea Party crap that won't ever happen, and would be a disaster if it did.

 

[poopgiggle]

Doesn't matter because the cash register at the store or online has no idea if the money making the purchase came from capital gains or not, it all becomes subject to the Fair Tax. That's why it's necessary to do away with the current tax code that contain such manipulation and make all income equal. Of course, the IRS goes away, too.

lol silly rabbit, you don't get actual money from capital gains.

 

[poopgiggle]

I am extremely disturbed by the massive volume of constant TV commercials on every channel, all hours of the day, by this guy. There is some HUGE !!! money backing him to pay for all this media. That kind of money means he has been bought out by somebody. Question is: Who ?

The FEC filings are public and everything's above board. At least it is with Olson.

Unless you think the ZOG is falsifying the reports ;-)

 

[Fatboy Joe]

Are these numbers/comparisons a joke? Please tell me these are a joke.

They are not a joke, they are examples. Obviously they are not true life examples and as many people have pointed out there are many different factors that go into figuring out what an effective tax rate is. I was trying to assist the OP with the basic idea without them having to do searching and digging through the propaganda.

Here is the pro-fair tax http://www.fairtax.org/site/PageServer

Here is the anit-fair tax http://www.forbes.com/sites/timworstall/2012/08/22/why-the-fair-tax-will-fail/ That is just one of the articles, someone wants the details find it out for themselves.

 

[inactive]

So basically the Fair Tax is another pile of demagogic Tea Party crap that won't ever happen, and would be a disaster if it did.

You are correct. Also, consider if a NATIONAL sales tax passes, how quickly markets will opo up to circumvent it entirely. How long before the limited government politicians begin to call in forces to enforce the sales tax?

I'm generally in favor to some form of consumption tax, on certain conspicuous goods (Kerry's yacht is a great example ) or perhaps a small rate even in general if it dialed back the income taxes rates. But the Fair Tax in and of itself , or any full consumption tax, is shaky ground for the reasons you outlined.



Heh, and as dustingaunder implied and many (not all) failed to grasp, it would never pass as the big money politicians would lose their preferential capital gains rates to the higher Fair Tax.

 

[EFsDad]

Here's the deal with the Fair Tax:

Consumption taxes are understood to be regressive (they tax poorer people more) by basically anyone who has taken an economics class. Poor people spend almost all of their income on stuff, i.e. food. Wealthy people have wealth, meaning that they hardly spend any of their money on consumption. Therefore, poor people are taxed more heavily by a flat consumption tax.

The Fair Tax "solution" is to offer a prebate of x dollars, which will counteract the tax on basic consumption by poor people. While this works for the really low income brackets, it does little to alleviate the extra tax burden on the middle class. Meanwhile, rich people still hardly spend any money (comparatively) on consumption. So basically this shifts all the tax burden onto the middle class.

The pot of gold at the end of the Fair Tax rainbow is that it would reduce the bureaucratic overhead involved in enforcing the tax code and processing tax returns. However, it is unclear how the savings on the IRS would counteract the loss in revenue from the Fair Tax. This would mean cutting big-ticket items like Social Security and defense, which are political atom bombs even if you don't agree with them.

So basically the Fair Tax is another pile of demagogic Tea Party crap that won't ever happen, and would be a disaster if it did.

[Deep Political Voice] Poopgiggle is spreading lies on the Fair Tax. (Show cute puppy) But there is one OSAer out there that will spread the truth. EFsDad has read both books, [Broken External Image]

and can tell you that poopgiggle is a bit off on how the tax works. (Show picture of EFsDad) I'm EFsDad. I shoot guns and I approve this ad. [/Deep Political Voice]