A Tax Theorem -or- "Why People are stupid when it comes to taxes."

Discussion in 'Economy' started by Deornwulf, Feb 15, 2006.

  1. Deornwulf
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    Deornwulf Member

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    I have been doing a great deal of reading on the FairTax plan being proposed by www.fairtax.org and Neal Boortz. In my investigations of criticisms of the plan, I have come to the realization that people are clueless when it comes to understanding how taxes work. So I have come up with a simple theorum to explain how all taxes work. If others have posted similar ideas, please free to link them here.

    My theorem is this - The government has a set budget. It will set any tax rates accordingly to meet this budget. Any tax exemptions will cause the tax rate to be elsewhere to make up the difference. Tax evasion, legal or illegal, causes the same thing to occur. These changes will always shift the tax burden in an unfair manner from the whole of a society to specific segments of that society.

    Basically, no matter what, the government is going to get its pound of flesh. The question is whether or not that pound comes from everyone or a select few.
     
  2. 5stringJeff
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    5stringJeff Senior Member

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    I think your initial statement (the government has a set budget) is flawed. The government will take all it can get. We are running deficits, and have been for some time. The issue is that the percentage that lower income people get taxed is close to zero, while the percentage that the rich get taxed at is around 33%, which is inherently unfair. The government should tax all people at an equal percentage.
     
  3. Deornwulf
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    Deornwulf Member

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    When you speak of the rich paying 33%, I assume you are speaking of those who earned more than $50,000 in the past fiscal year and not the wealthy (many of whom make our tax laws) who can structure their income through OFC's and Trust Funds in such a manner to only pay 12% on their real income in taxes.
     
  4. 5stringJeff
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    5stringJeff Senior Member

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    I'm all in favor of restructuring tax laws to close such loopholes.
     
  5. BaronVonBigmeat
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    BaronVonBigmeat Senior Member

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    I'm all in favor of restructuring taxes to open similar loopholes to all.

    In fact, I really just want to cut the various levels of government back to the point where their functions are paid for with user fees and charitable donations. :D
     
  6. Hobbit
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    Hobbit Senior Member

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    I'm in favor of scrapping income tax altogether and levying a tax on consumption, like in the FairTax book. You can't dodge a consumption tax without buying everything overseas. Everybody buys things.
     
  7. Bullypulpit
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    Bullypulpit Senior Member

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    Working people voting for Republicans because of tax-cuts is like mice voting for mouse-traps because of the cheese.
     
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  8. rtwngAvngr
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    rtwngAvngr Guest

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    Here's my metaphor: you're like an idiot.
     
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  9. Mr. P
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    Mr. P Senior Member

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    How about we cut er back to what the Constitution spells out?

    Excise
    excise n a tax on the manufacture, sale, or consumption of goods within a country

    There's our fair tax, right there.
     
  10. Hobbit
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    Hobbit Senior Member

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    You talking because you think you're right and on topic is like crap spewing out of somebody's mouth, only it smells worse.
     

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