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I feel like the tax code needs a much bigger overhaul than anyone has proposed. For example, AGI should be weighTed relative to cost of living. A couple living

by byoung2 12y ago

I feel like the tax code needs a much bigger overhaul than anyone has proposed. For example, AGI should be weighTed relative to cost of living. A couple living in San Francisco or LA filing jointly and earning $210k doesn't qualify for the child tax credit or even the IRA deduction, but they are by no means living lavishly. That same couple could make $100k in Atlanta and have a huge mansion but qualify for every tax credit available.

mc32 12y ago
I would agree with you but I think people are apt to tolerate 'big' injustices over 'small' injustices. If you had some kind of COLA apply to taxes --which I think would be more just, you know there would be people suing over the COLA being miscalculated or that their living within a given neighborhood as opposed to the one two blocks away should mean their adjustment is greater... it could get byzantine and unweildly quick.
- martingordon 12y ago
  The government puts out cost of living indexes for select urban areas, so we could just go by that: http://www.census.gov/compendia/statab/cats/prices/consumer_price_indexes_cost_of_living_index.html http://www.census.gov/compendia/statab/cats/prices/consumer_... The data is from 2010, so a bit outdated, but it puts Manhattan at 2.1x the national average and SF at 1.64x the national average. The high cost of housing also pushes more people to renting instead of buying, eliminating any tax deductions for mortgage interest that people in low-cost areas are more likely to take.
  - zaroth 12y ago
    A rent deduction, up to a maximum amount determined by that index. Now that would be a pro middle-class policy that I would support.
forrestthewoods 12y ago
The San Fran couple chose to live there. Why should th government give monetary reward to those who wish to live in high cost of living areas? If anything I feel like I'd rather encourage folks spread out more. Although I'd be open to hearing arguments as to whether fewer larger cities is better than more smaller hubs.
- zaroth 12y ago
  The economic benefits of having that many people that close together are absolutely massive. It's absolutely true that costs are enormously higher in certain areas, the value of a dollar significantly lower. Due to the progressive nature of the code, lower-value areas are overly penalized. It's just another flaw in the system.

by byoung2 12y ago

mc32 12y ago

I would agree with you but I think people are apt to tolerate 'big' injustices over 'small' injustices. If you had some kind of COLA apply to taxes --which I think would be more just, you know there would be people suing over the COLA being miscalculated or that their living within a given neighborhood as opposed to the one two blocks away should mean their adjustment is greater... it could get byzantine and unweildly quick.

martingordon 12y ago
The government puts out cost of living indexes for select urban areas, so we could just go by that: http://www.census.gov/compendia/statab/cats/prices/consumer_price_indexes_cost_of_living_index.html http://www.census.gov/compendia/statab/cats/prices/consumer_... The data is from 2010, so a bit outdated, but it puts Manhattan at 2.1x the national average and SF at 1.64x the national average. The high cost of housing also pushes more people to renting instead of buying, eliminating any tax deductions for mortgage interest that people in low-cost areas are more likely to take.
- zaroth 12y ago
  A rent deduction, up to a maximum amount determined by that index. Now that would be a pro middle-class policy that I would support.

forrestthewoods 12y ago

The San Fran couple chose to live there. Why should th government give monetary reward to those who wish to live in high cost of living areas? If anything I feel like I'd rather encourage folks spread out more. Although I'd be open to hearing arguments as to whether fewer larger cities is better than more smaller hubs.

zaroth 12y ago
The economic benefits of having that many people that close together are absolutely massive. It's absolutely true that costs are enormously higher in certain areas, the value of a dollar significantly lower. Due to the progressive nature of the code, lower-value areas are overly penalized. It's just another flaw in the system.