5 ms·

I wish we got rid of all taxes except for income tax on people. Anyone versed in finance can tell me why that's a bad idea?

gotocake 8y ago
The simplest counterpoint is that the wealthier people are, the less their wealth relies on income and the more it relies on capital gains; using money to make more money. Squeezing the middle and lower classes while giving a free pass to the very rich seems counterproductive in terms of policy.
- didibus 8y ago
  Well, in my proposal, capital income is just regular income as well. When you sell stock, sell property, etc. Basically everytime you cash out, that would just count as additional income for that year. So I'm not sure in that way I understand how it would squeeze the middle and lower class?
  - gotocake 8y ago
    To be fair, this “proposal” is something you in no way included the details of in your comment. It would be impossible to guess that you were using a novel definition of “income tax” to include capital gains tax as well.
    - didibus 8y ago
      Yes, I recognise that. I guess my thought is more, why not only tax income? Not exactly, why not only keep the existing income tax and get rid of all others. Only taxing income (all forms of them), and just using a bracketing system would simplify the whole equation so much. And make filing taxes quite simple. I'm sad to see people have mostly downvoted me, and provided no rational for what would be worse about such a tax scheme. It seems that's telling to why we are probably very far from a tax reform, people seem to be irrationally attached to the way they're used to it.
whoisjuan 8y ago
Taxes will always get collected directly or indirectly as a function of funding a determined government budget. If you remove taxation from an area you need to counterbalance it on another area. For instance Texas, which doesn't have income tax, has one of the highest property tax rates and a fairly high sale tax.
- didibus 8y ago
  Okay? I'm not sure how that addresses my proposal? I'm saying get rid of property tax and sale tax, and add income tax. If you need to adjust the income tax to some new levels due to losses of other taxes that's fine.

gotocake 8y ago

The simplest counterpoint is that the wealthier people are, the less their wealth relies on income and the more it relies on capital gains; using money to make more money. Squeezing the middle and lower classes while giving a free pass to the very rich seems counterproductive in terms of policy.

didibus 8y ago
Well, in my proposal, capital income is just regular income as well. When you sell stock, sell property, etc. Basically everytime you cash out, that would just count as additional income for that year. So I'm not sure in that way I understand how it would squeeze the middle and lower class?
- gotocake 8y ago
  To be fair, this “proposal” is something you in no way included the details of in your comment. It would be impossible to guess that you were using a novel definition of “income tax” to include capital gains tax as well.
  - didibus 8y ago
    Yes, I recognise that. I guess my thought is more, why not only tax income? Not exactly, why not only keep the existing income tax and get rid of all others. Only taxing income (all forms of them), and just using a bracketing system would simplify the whole equation so much. And make filing taxes quite simple. I'm sad to see people have mostly downvoted me, and provided no rational for what would be worse about such a tax scheme. It seems that's telling to why we are probably very far from a tax reform, people seem to be irrationally attached to the way they're used to it.

whoisjuan 8y ago

Taxes will always get collected directly or indirectly as a function of funding a determined government budget. If you remove taxation from an area you need to counterbalance it on another area. For instance Texas, which doesn't have income tax, has one of the highest property tax rates and a fairly high sale tax.

didibus 8y ago
Okay? I'm not sure how that addresses my proposal? I'm saying get rid of property tax and sale tax, and add income tax. If you need to adjust the income tax to some new levels due to losses of other taxes that's fine.