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What is patently absurd is the assumption that tax havens and loopholes are only for the filthy rich. I make less than $80K, I'm solidly in the "middle class",
by camiller 15y ago
What is patently absurd is the assumption that tax havens and loopholes are only for the filthy rich. I make less than $80K, I'm solidly in the "middle class", and my effective federal income tax rate last year was less than 6% after deductions etc. People just don't understand how to set down with a copy of Turbo Tax and ferret out the deductions.
- Tsagadai 15y agoWhat value does this actually create for the economy? You get some extra cash in your pocket, but for what actual gain? You spend hours, or days, or as is the case for some people I know week of their free time doing creative accounting. This is pointless busywork with no actual economic gain to a nation. The government gets less money from you, and you personally spend an amount of time on something that could be much better spent /generating/ or spending capital. I honestly think governments should remove all deductions and just charge a lower tax rate. I know it is an economic tool to get people to do or buy certain things but income tax deductions really add very little value to the economy and waste people's time. Note, that I am talking about income tax deductions, deductions can be put on other taxes to encourage purchasing but then it is your choice to buy it or not and the gain is immediate instead of at tax time.
- camiller 15y agoMy comment was just to point out that loopholes exist for every income level, not just the rich. I agree that a simpler tax scheme like the "fair tax" or a flat tax with the first $(poverty level annually adjusted for inflation) tax free would be wholly better.