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an approach to federal taxation


muck
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I never said I didn't like your idea. I'm merely exposing the inherent impossibilities of any "simple" solution. Plus, no matter how theoretically awesome any plan is on paper, it won't matter unless you can fundamentally change how laws are made in DC.

 

Perhaps I'm overly pessimistic because of what I see every day at work. I just don't see any workable solutions that are also politically achievable - which is just the way certain people like it. I'm half serious that it might take armed revolt to scrap the Code and start over.

 

Indeed.

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Yep, I can't believe how many lobbyists are running around Washington advocating for welfare mothers.

 

They don't need money. They pay the politicians with their vote, keeping them in power. Surely you see this?

 

I never said I didn't like your idea. I'm merely exposing the inherent impossibilities of any "simple" solution. Plus, no matter how theoretically awesome any plan is on paper, it won't matter unless you can fundamentally change how laws are made in DC.

 

Perhaps I'm overly pessimistic because of what I see every day at work. I just don't see any workable solutions that are also politically achievable - which is just the way certain people like it. I'm half serious that it might take armed revolt to scrap the Code and start over.

 

The issue as I see it is the little trinkets in the tax code for businesses (MACRS, ACRS, treatments of farm implements, etc.) If you tied the tax code to GAAP, you could get away from a lot of that, and do a pretty good job of ensuring honesty. The AICPA is absolutely aboveboard with everything as far as I know. :wacko:

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The issue as I see it is the little trinkets in the tax code for businesses (MACRS, ACRS, treatments of farm implements, etc.) If you tied the tax code to GAAP, you could get away from a lot of that, and do a pretty good job of ensuring honesty. The AICPA is absolutely aboveboard with everything as far as I know. :wacko:

Tax accountants and financial accountants alike live in la-la land. I agree GAAP is a lot closer to economic reality than the IRC but not sure how well massive impairment hits being deducted on corporate tax returns would go over with democrats. :tup:

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Warren Buffet admits that he is only being taxed 17.4 % while most middle class families are between 33% and 41%. per his article in the NYT.

 

Well, and I am drawing from another baord here as well:

 

Last year my federal tax bill — the income tax I paid, as well as payroll taxes paid by me and on my behalf — was $6,938,744. That sounds like a lot of money. But what I paid was only 17.4 percent of my taxable income — and that’s actually a lower percentage than was paid by any of the other 20 people in our office. Their tax burdens ranged from 33 percent to 41 percent and averaged 36 percent.

 

Burden = all taxes divided by taxable income by Buffet's definition

 

And to be even fairer, Buffet won't be affected much by higher marginal income tax rates because most of his wealth is in Berkshire stock and compounds without being subject to tax.

 

His statement is very misleading. How could his employees pay higher Fed tax rates than actually exist, unless he's counting their entire tax burden, and if so, why is he comparing those to only his federal tax rate?
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Tax accountants and financial accountants alike live in la-la land. I agree GAAP is a lot closer to economic reality than the IRC but not sure how well massive impairment hits being deducted on corporate tax returns would go over with democrats. :tup:

 

 

Maybe use SCF/cash basis? The impairment is just as real as depreciation, don't you think? You bought an asset, it isn't going to perform as expected, so you write it down to expected future cash flows. :wacko:

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Some people who purchased homes realy heavily on the tax deductions currently allowed by the IRS. If you take this away and go to a flat tax now, I can see in some cases where they may lose their homes. This may be a minority of people or alot of people, I dont have data but its just a thought.

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Some people who purchased homes realy heavily on the tax deductions currently allowed by the IRS. If you take this away and go to a flat tax now, I can see in some cases where they may lose their homes. This may be a minority of people or alot of people, I dont have data but its just a thought.

 

well it will be offset by having their overall tax rate go down say 8-10%. some will end up paying a little more, some a little less, but the differences won't be drastic enough by themselves to be forcing many people out of their homes.

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well it will be offset by having their overall tax rate go down say 8-10%. some will end up paying a little more, some a little less, but the differences won't be drastic enough by themselves to be forcing many people out of their homes.

 

I understand that, but I think I would have a problem with even some losing their homes based on tax changes. That is a major life changer for those who fall into that category and have done nothing wrong but planned their finances according to the current law.

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I understand that, but I think I would have a problem with even some losing their homes based on tax changes. That is a major life changer for those who fall into that category and have done nothing wrong but planned their finances according to the current law.

There used to be a tax relief on mortgages in England, called MIRAS. It was phased out over 5 years and no-one felt the impact. I would envisage some similar stepped approach here.

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I knew we could blame all of this on twiley.

 

 

:tup: that connection occurred to me as I was typing the words. figured I'd leave it in there as a little easter egg.

A brother's gotta make a livin'.

 

Funny enough, I may be doing some political advertising this fall. Those guys have fat wallets. :wacko:

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