3 ms·

New tax code: Every time money changes hands it is taxed at X percent. Admittedly it is pretty simple example but my point is the loopholes are not on accident

New tax code: Every time money changes hands it is taxed at X percent. Admittedly it is pretty simple example but my point is the loopholes are not on accident, it's by design.

guard-of-terra 10y ago
Will HFT be affected? Such people don't have to work in "money", they can pass shares or bonds or IOUs. Edit: fix stupidity
- cmdrfred 10y ago
  Is HFT a net benefit to the average American? Does the average American even care? It seems to me that HFT prevents the average American from having any participation in the process. Find a new business model. Bonds have a cash value, tax that. If they start only using IOU's hit them for unauthorized creation of currency under the National Bank Act of 1863 and the Legal Tender Act of 1862.
dragontamer 10y ago
Yeah, except certain changing of money is considered unfair (ie: do you really want to be taxed if you give your friend a $50 in cash as a gift?), while other exchanging of money is considered good for the economy (ie: tax breaks on education-related expenses). The loopholes aren't there by design, but the complications of the taxes are in there by design. We wish to encourage education and business (both education and business expenses are deductable). We want to encourage renewable energy (solar taxes, net metering, etc. etc.). We want to encourage home ownership (mortgage deductible), charitable giving (church donation deductibles, etc. etc.). Taxes aren't complicated if you just fill out a 1040EZ. Taxes become complicated when you want to make sure you got all of the money back from deductibles and credits.
JonFish85 10y ago
Isn't that the way it already is, for the most part? Granted there are some things that aren't taxed this way (land & food come to mind), but for the most part, as money flows through the system, it is taxed. Buy a laptop for $1,000: * That comes out of money you've been paid, presumably, so in 43 US states, you've paid income tax already on it, and your company has paid payroll taxes. * 45 US states charge sales tax, so you pay sales tax. * If you paid with a credit card, a cut of your transaction goes to the credit card company, who pays taxes on their profits from that transaction. * The money is transferred to a bank account, and that bank is taxed on the profit that they make from that deposit. * The laptop company pays taxes on the profits that they make from that laptop (depending on where they're located, but if it was sold in the USA, they pay taxes). * Any shipping company involved moving that merchandise around paid taxes on the profits they made. * The company that brought the laptop into the USA pays the import taxes/tariffs associated with it. Just at a glance, every time something changed hands, it is taxed. And this doesn't get into things like excise tax, which are even more fun.
- dragontamer 10y ago
  No. Gifts are taxed only if they are above $10,000. When you give money to your buddy to help pay for a meal, that isn't taxed (money changed hands, didn't it?). Furthermore, there are lots of taxes out there that do not involve the movement of money. Property Taxes are when a municipality agent comes to your property, they make up a number that "sounds right", and then start charging you for it. Furthermore, you aren't taxed when you buy or sell stocks or bonds. (Bernie Sanders wants to change that... cause he doesn't know how bad of an idea that is). You only are taxed on your GAINS: dividends and capital gains. If you buy a stock at $100, then sell it for $110, you are taxed 15% on $10. Not on the $100 or $110 individual transactions. (In contrast, the Financial Trade tax Bernie proposes would be a tax on both the $100 AND $110 transactions)
dragontamer 10y ago
The downvotes proof that "Wooosh", the sarcasm in your post was missed. He is demonstrating a point here people. "Simple taxes" are unfair. Taxes are complicated because real life is complicated, and we wish to be fair.

New tax code: Every time money changes hands it is taxed at X percent. Admittedly it is pretty simple example but my point is the loopholes are not on accident, it's by design.

guard-of-terra 10y ago

Will HFT be affected? Such people don't have to work in "money", they can pass shares or bonds or IOUs. Edit: fix stupidity

cmdrfred 10y ago
Is HFT a net benefit to the average American? Does the average American even care? It seems to me that HFT prevents the average American from having any participation in the process. Find a new business model. Bonds have a cash value, tax that. If they start only using IOU's hit them for unauthorized creation of currency under the National Bank Act of 1863 and the Legal Tender Act of 1862.

dragontamer 10y ago

Yeah, except certain changing of money is considered unfair (ie: do you really want to be taxed if you give your friend a $50 in cash as a gift?), while other exchanging of money is considered good for the economy (ie: tax breaks on education-related expenses). The loopholes aren't there by design, but the complications of the taxes are in there by design. We wish to encourage education and business (both education and business expenses are deductable). We want to encourage renewable energy (solar taxes, net metering, etc. etc.). We want to encourage home ownership (mortgage deductible), charitable giving (church donation deductibles, etc. etc.). Taxes aren't complicated if you just fill out a 1040EZ. Taxes become complicated when you want to make sure you got all of the money back from deductibles and credits.

JonFish85 10y ago

Isn't that the way it already is, for the most part? Granted there are some things that aren't taxed this way (land & food come to mind), but for the most part, as money flows through the system, it is taxed. Buy a laptop for $1,000: * That comes out of money you've been paid, presumably, so in 43 US states, you've paid income tax already on it, and your company has paid payroll taxes. * 45 US states charge sales tax, so you pay sales tax. * If you paid with a credit card, a cut of your transaction goes to the credit card company, who pays taxes on their profits from that transaction. * The money is transferred to a bank account, and that bank is taxed on the profit that they make from that deposit. * The laptop company pays taxes on the profits that they make from that laptop (depending on where they're located, but if it was sold in the USA, they pay taxes). * Any shipping company involved moving that merchandise around paid taxes on the profits they made. * The company that brought the laptop into the USA pays the import taxes/tariffs associated with it. Just at a glance, every time something changed hands, it is taxed. And this doesn't get into things like excise tax, which are even more fun.

dragontamer 10y ago
No. Gifts are taxed only if they are above $10,000. When you give money to your buddy to help pay for a meal, that isn't taxed (money changed hands, didn't it?). Furthermore, there are lots of taxes out there that do not involve the movement of money. Property Taxes are when a municipality agent comes to your property, they make up a number that "sounds right", and then start charging you for it. Furthermore, you aren't taxed when you buy or sell stocks or bonds. (Bernie Sanders wants to change that... cause he doesn't know how bad of an idea that is). You only are taxed on your GAINS: dividends and capital gains. If you buy a stock at $100, then sell it for $110, you are taxed 15% on $10. Not on the $100 or $110 individual transactions. (In contrast, the Financial Trade tax Bernie proposes would be a tax on both the $100 AND $110 transactions)

dragontamer 10y ago

The downvotes proof that "Wooosh", the sarcasm in your post was missed. He is demonstrating a point here people. "Simple taxes" are unfair. Taxes are complicated because real life is complicated, and we wish to be fair.