Rangel's Tax Increase Proposal

[Pabster]

Originally posted by: bamacre
Is this true only in regards to income taxes, or all taxes.

That's an interesting question.

 

[Queasy]

Originally posted by: senseamp
Long overdue. What they should really do is remove SS tax cap.

No. Social Security is supposed to be a retirement insurance plan. What you put in is what you get back (though it really is a ponzi scheme because of government corruption). Removing the SS tax cap will simply result in income redistribution.

Even then, it will only add a few more years of solvency to SS. It needs a much greater reform than that.

 

[Brovane]

Looks good to me. With a increase of around 4% on incomes above $200k. So basically any income above that level will be taxed more. The GOP has already started howling about this one.

I love this quote. - In anticipation of Rangel's plan, Rep. Jeb Hensarling, R-Texas, and other GOP conservatives wrote their colleagues Wednesday urging them to oppose any proposal to raise taxes to pay for the elimination of the AMT. "The correction of tax mistakes should never be offset with tax increases," they wrote.

The correction of tax mistakes should never be offset with tax increases. You got to be kidding me. How else do you expect to pay for correction of the tax mistake? Just keep running up the nations Debt?

 

[CPA]

Originally posted by: chucky2

Originally posted by: ironwing
Simply treat all income equally, regardless of source. No more tax break for capital gains.

I'm far from an accountant, but I really like this idea.

Basically they should pick a % of total gross income, say 20% as an example, and that's everyones tax. No writeoffs, no loopholes, nothing.

You earned a gross of 30k this year? Fine, your taxes due are $6k. You earned $300k this year? Fine, your taxes due are $60k.

If the government can't subsist on what they take in under this system, then they either raise the % taxed on everyone, cut government spending, or, a mixture of both.

This seems the most fair to everyone.

Of course people under the poverty line would continue to pay no taxes.

Why can't we just have a simple system like this????

Chuck

Well, I am an accountant and I actually like the Fair Tax better than what we currently have, but I like a National Sales Tax even better.

 

[Queasy]

Originally posted by: heyheybooboo

Originally posted by: Wreckem

Originally posted by: Pabster
Story here.

Charlie's got the tax hammer in full swing. Who will be struck next?

Well the top 5% already pays more in taxes than they did before Bush's tax cut.

And this really doesnt matter, in 15-20 years, taxes will be atleast 50% higher than they are no with the top tax bracket cracking 60%.

Me personally, if I could do it, id save a whole crap load of money over the next 15-20 years an expatriate to the caribean. A las that is not likely to happen, and I will be here when my generation takes over power with American in shambles...

Individual Income Tax Receipts (millions of $)

2005 . . . . . 2,153,859
2004 . . . . . 1,880,279
2003 . . . . . 1,782,532
2002 . . . . . 1,853,395
2001 . . . . . 1,991,426

2000 . . . . . 2,025,457
1999 . . . . . 1,827,645
1998 . . . . . 1,721,955
1997 . . . . . 1,579,423
1996 . . . . . 1,453,177

Individual income taxes as a percentage of overall receipts:
2000 - 49.59%
2005 - 43.05%
That would be a decrease of 13.19%.

Office of the President - Budget of the US Gov't

Come again?

It would have been correct to say that the top 5% pay more to the income tax than any other group prior to the Bush tax cuts. The top 1% earn 17% of the nation's income but pay ~38% of the income tax dollars. I can't remember the distribution for the top 5% but it is similar....I think around 50% of the total income tax dollars...and has also increased since the Bush tax cuts.

Btw, you're leaving out 2006.

 

[Queasy]

Originally posted by: CPA

Originally posted by: chucky2

Originally posted by: ironwing
Simply treat all income equally, regardless of source. No more tax break for capital gains.

I'm far from an accountant, but I really like this idea.

Basically they should pick a % of total gross income, say 20% as an example, and that's everyones tax. No writeoffs, no loopholes, nothing.

You earned a gross of 30k this year? Fine, your taxes due are $6k. You earned $300k this year? Fine, your taxes due are $60k.

If the government can't subsist on what they take in under this system, then they either raise the % taxed on everyone, cut government spending, or, a mixture of both.

This seems the most fair to everyone.

Of course people under the poverty line would continue to pay no taxes.

Why can't we just have a simple system like this????

Chuck

Well, I am an accountant and I actually like the Fair Tax better than what we currently have, but I like a National Sales Tax even better.

The Fair Tax is a National Sales tax.

 

[CPA]

BTW, techs, Craig, Dave, why aren't you guys screaming and crying about the huge tax cut that Corporations are going to get out of this?

 

[CPA]

Originally posted by: Queasy

Originally posted by: senseamp
Long overdue. What they should really do is remove SS tax cap.

No. Social Security is supposed to be a retirement insurance plan. What you put in is what you get back (though it really is a ponzi scheme because of government corruption). Removing the SS tax cap will simply result in income redistribution.

Even then, it will only add a few more years of solvency to SS. It needs a much greater reform than that.

C'mon, Queasy, you should know by now that senseamp wants someone else to fund his retirement.

 

[Pabster]

Originally posted by: Queasy
No. Social Security is supposed to be a retirement insurance plan. What you put in is what you get back (though it really is a ponzi scheme because of government corruption). Removing the SS tax cap will simply result in income redistribution.

Even then, it will only add a few more years of solvency to SS. It needs a much greater reform than that.

Precisely. A few more years is not acceptable. SS needs to be reformed to be solvent for future generations.

 

[CPA]

Originally posted by: Queasy

Originally posted by: CPA

Originally posted by: chucky2

Originally posted by: ironwing
Simply treat all income equally, regardless of source. No more tax break for capital gains.

I'm far from an accountant, but I really like this idea.

Basically they should pick a % of total gross income, say 20% as an example, and that's everyones tax. No writeoffs, no loopholes, nothing.

You earned a gross of 30k this year? Fine, your taxes due are $6k. You earned $300k this year? Fine, your taxes due are $60k.

If the government can't subsist on what they take in under this system, then they either raise the % taxed on everyone, cut government spending, or, a mixture of both.

This seems the most fair to everyone.

Of course people under the poverty line would continue to pay no taxes.

Why can't we just have a simple system like this????

Chuck

Well, I am an accountant and I actually like the Fair Tax better than what we currently have, but I like a National Sales Tax even better.

The Fair Tax is a National Sales tax.

OOooops, I meant Flat Tax. Thanks for correcting me.

 

[EagleKeeper]

Originally posted by: Brovane
Looks good to me. With a increase of around 4% on incomes above $200k. So basically any income above that level will be taxed more. The GOP has already started howling about this one.

I love this quote. - In anticipation of Rangel's plan, Rep. Jeb Hensarling, R-Texas, and other GOP conservatives wrote their colleagues Wednesday urging them to oppose any proposal to raise taxes to pay for the elimination of the AMT. "The correction of tax mistakes should never be offset with tax increases," they wrote.

The correction of tax mistakes should never be offset with tax increases. You got to be kidding me. How else do you expect to pay for correction of the tax mistake? Just keep running up the nations Debt?

Cutting spending will work better

 

[Pabster]

Originally posted by: CPA
BTW, techs, Craig, Dave, why aren't you guys screaming and crying about the huge tax cut that Corporations are going to get out of this?

Because their heroes are making the proposals.

 

[Queasy]

Originally posted by: bamacre

Originally posted by: Skoorb

Originally posted by: techs
About time the rich paid the taxes they deserve to pay.

Such jealousy. They already pay more than you do so that you can sit on your butt making crap wages and not footing the bill for things you use. The rich keep this country going because they pay a disproportionately huge amount of taxes.

Is this true only in regards to income taxes, or all taxes.

Definitely true in regards to income taxes.

The rich pay more in SS taxes but are capped at something just over $80,000. People who don't make as much never reach the cap. Payroll taxes take up a greater percentage of the poor and middle-class pay checks though. However, SS isn't a tax...it is a bad ponzi scheme masquerading as a retirement insurance plan. Medicare is also not a tax but a payment for health insurance.

The rich are also the ones paying the capital gains taxes on investment since they are more than likely the ones investing.

 

[Pabster]

Originally posted by: Queasy
The rich are also the ones paying the capital gains taxes on investment since they are more than likely the ones investing.

Makes sense.

 

[CPA]

Originally posted by: Queasy

Originally posted by: bamacre

Originally posted by: Skoorb

Originally posted by: techs
About time the rich paid the taxes they deserve to pay.

Such jealousy. They already pay more than you do so that you can sit on your butt making crap wages and not footing the bill for things you use. The rich keep this country going because they pay a disproportionately huge amount of taxes.

Is this true only in regards to income taxes, or all taxes.

Definitely true in regards to income taxes.

The rich pay more in SS taxes but are capped at something just over $80,000. People who don't make as much never reach the cap. Payroll taxes take up a greater percentage of the poor and middle-class pay checks though. However, SS isn't a tax...it is a bad ponzi scheme masquerading as a retirement insurance plan. Medicare is also not a tax but a payment for health insurance.

The rich are also the ones paying the capital gains taxes on investment since they are more than likely the ones investing.

The cap will be $102,400 for 2008. It was approximately $97,000 for 2007.
Notice that the percentage increase is greater than the COLI or inflation rate annually. And, of course medicare has no cap.

 

[Pabster]

McCrery says "Mother Of All Tax Hikes"

Interesting rebuttal.

 

[techs]

Oh Noes, tax rich people?
Lower taxes on the middle class?
How dare the Democrats do that?

 

[Jaskalas]

Originally posted by: Common Courtesy

Originally posted by: techs
About time the rich paid the taxes they deserve to pay.

Rob Peter to pay Paul.

What happens when Peter refuses to pay - can Paul support himself or is he so used to handouts that he will scream bloody murder?

The increase of socialism brings us ever closer to this tipping point. The broken system cannot survive, it only increases taxes in a vane attempt to delay its inevitable demise. Our streets will run red at that point.

Impoverished people don't like it when government keeps them down in the dirt. It?ll be another catalyst than the obvious one, the obvious fact that taxing your employer keeps down your wages and makes you suffer worse. No, when Paul cannot make ends meet he won?t care who to blame, he will simply make ends meet and it won?t be through civil means.

 

[Queasy]

Originally posted by: CPA

Originally posted by: Queasy

Originally posted by: bamacre

Originally posted by: Skoorb

Originally posted by: techs
About time the rich paid the taxes they deserve to pay.

Such jealousy. They already pay more than you do so that you can sit on your butt making crap wages and not footing the bill for things you use. The rich keep this country going because they pay a disproportionately huge amount of taxes.

Is this true only in regards to income taxes, or all taxes.

Definitely true in regards to income taxes.

The rich pay more in SS taxes but are capped at something just over $80,000. People who don't make as much never reach the cap. Payroll taxes take up a greater percentage of the poor and middle-class pay checks though. However, SS isn't a tax...it is a bad ponzi scheme masquerading as a retirement insurance plan. Medicare is also not a tax but a payment for health insurance.

The rich are also the ones paying the capital gains taxes on investment since they are more than likely the ones investing.

The cap will be $102,400 for 2008. It was approximately $97,000 for 2007.
Notice that the percentage increase is greater than the COLI or inflation rate annually. And, of course medicare has no cap.

Thanks for clearing that up. I couldn't remember where it is currently at. Last number I could remember was around $80k.

 

[Jaskalas]

Originally posted by: techs
Oh Noes, tax rich people?
Lower taxes on the middle class?
How dare the Democrats do that?

We should cap incomes at $100,000 and watch the fireworks. If eliminating wealth is such a great idea.

 

[Brovane]

Originally posted by: Common Courtesy

Originally posted by: Brovane
Looks good to me. With a increase of around 4% on incomes above $200k. So basically any income above that level will be taxed more. The GOP has already started howling about this one.

I love this quote. - In anticipation of Rangel's plan, Rep. Jeb Hensarling, R-Texas, and other GOP conservatives wrote their colleagues Wednesday urging them to oppose any proposal to raise taxes to pay for the elimination of the AMT. "The correction of tax mistakes should never be offset with tax increases," they wrote.

The correction of tax mistakes should never be offset with tax increases. You got to be kidding me. How else do you expect to pay for correction of the tax mistake? Just keep running up the nations Debt?

Cutting spending will work better

Were would you cut spending to pay for this? I think you would need to cut spending by around 1 trillion over 10-years. Defense? Entitlements?

 

[techs]

Originally posted by: Jaskalas

Originally posted by: techs
Oh Noes, tax rich people?
Lower taxes on the middle class?
How dare the Democrats do that?

We should cap incomes at $100,000 and watch the fireworks. If eliminating wealth is such a great idea.

Yeah, that adds a lot to the discussion. Claim any increase in taxes on the wealthy means capping incomes. Or claim the terrorists win.

 

[theeedude]

Originally posted by: Queasy

Originally posted by: senseamp
Long overdue. What they should really do is remove SS tax cap.

No. Social Security is supposed to be a retirement insurance plan. What you put in is what you get back (though it really is a ponzi scheme because of government corruption). Removing the SS tax cap will simply result in income redistribution.

Even then, it will only add a few more years of solvency to SS. It needs a much greater reform than that.

I don't care what it's "supposed" to be. I know what it is now.
SS funds are being used to fund general spending. So general revenues should be used to fund SS. So SS tax should just be rolled into income tax, not be a regressive tax.

 

[Queasy]

Originally posted by: Brovane

Originally posted by: Common Courtesy

Originally posted by: Brovane
Looks good to me. With a increase of around 4% on incomes above $200k. So basically any income above that level will be taxed more. The GOP has already started howling about this one.

I love this quote. - In anticipation of Rangel's plan, Rep. Jeb Hensarling, R-Texas, and other GOP conservatives wrote their colleagues Wednesday urging them to oppose any proposal to raise taxes to pay for the elimination of the AMT. "The correction of tax mistakes should never be offset with tax increases," they wrote.

The correction of tax mistakes should never be offset with tax increases. You got to be kidding me. How else do you expect to pay for correction of the tax mistake? Just keep running up the nations Debt?

Cutting spending will work better

Were would you cut spending to pay for this? I think you would need to cut spending by around 1 trillion over 10-years. Defense? Entitlements?

I think you could start with all the pork projects where Congress critters name buildings after themselves and give kickbacks to campaign contributers.

 

[CPA]

Originally posted by: techs
Oh Noes, tax rich people?
Lower taxes on Corporations?
How dare the Democrats do that?

Fixed. You keep conveniently leaving this part out.