Friday, April 01, 2011

Taxes

Doing taxes is a draining experience
We pay loads of taxes
We have never had enough to "write off"
so we pay what the number says.
I want FLAT taxes.
Why should someone be able to write off their house
because they didn't have the money
while I have to pay fully?

While private industry complains about public workers
and their compensation
They need to remember that
few of us get to write off our lunches
or the car and gas
or even the home office.

I pay more taxes than GE
What else is new?

Next year will be interesting
What happens when you don't have income?

8 comments:

RAnn said...

When you don't have income, you don't eat. Income and salary are two different things.

We talked once before about flat tax. Let me ask you this: I drive places for my job, mostly courthouses. I leave my office in my car, drive where I am sent, on firm time, and then return either to the office, or at the end of the day, to home. The firm pays me 51 cents a mile to drive--the rate the IRS allows me to "write off"--in other words, I pay no taxes on that money. Under your "flat tax" system, would I pay taxes on that money?

Janette said...

If the income tax was flat- then either the company provides you the car and the gas (which is how it was done at my grandfather's company) or you would pay income taxes on the travel.
Your income would be higher, and so would your taxes.
I don't think the business should be compensated by MY taxes for you to drive to do their business. Basically, the business pays you -and then I pay you again.
The tax code is completely swayed for business and not the normal individual. The tax write offs are crazy. Pay a wage and then tax that wage.

I know, the next question is machinery. If you have the machinery than you can make the product. I don't think that should be written off either. I don't agree with mortgage interest being written off either. Soooooo----that leaves me with flat tax. 10% would cover most of the country's needs.

The people who would be most upset? Tax lawyers, accountants and then businesses who can find loopholes and improve paying no taxes themselves like GE CEOs who get paid in stock and give away enough to equal the gains.

RAnn said...

Why should I pay taxes on my employer's expenses? That's just crazy -- or why should a law firm keep a fleet of cars.

Sometimes when I need an article for some research I have to pay for it with a credit card. I do, and the firm reimburses me. In your system, would I pay taxes on that money?

Janette said...

Why should I pay for the cars or the gas?
Basically I get the honor of doing that when I pay my taxes. By them being able to deduct the price of doing business- the difference is made up in tax dollars. Those tax dollars come from somewhere.

I understand that it is an expense- but it IS the price of doing business which is not the role of the government.

RAnn said...

Why do you think manufacturers should pay more taxes than service providers?

RAnn said...

You and I both sew. We both decide to go into the sewing business. We both buy a sewing machine and a collection of different colored thread. We both decide to work out of our identical houses. We both decide our time is worth $20/hr and price our products accordingly. At the end of the week we have both worked 20 hours. Why should you pay a lot more in taxes than I do?

You see, you decided to make and sell little girls' dresses. You have to buy fabric etc. that costs $5.00/dress. It takes you two hours to make a dress so assuming you sold 20 hrs worth of dresses, you've spent $50.00 on fabric and notions. Your "income" may be $450, but you only get to keep $400. I decided to do alterations. People bring clothes to me; all I invest is thread and time, and since I'm good at estimating how long these alterations take, I earned the $20/hr I aimed for, so I have $400 minus a couple of dollars for thread. At your rate of 10%, you'd pay $5 more taxes this week than I did--even though we both ended up with the same amount of money in our pockets--and if you get really busy and hire me to help you, then I guess we can both pay taxes on my wages...

Janette said...

Flat tax is FLAT. That means share holders (what stock is supposed to be) take risk with their money to put together manufacturing. If it fails- they lose their money.
Government needs to be out of business' business- including taxes. If they could get out of business then maybe they could get out of health care. Until they are out of one- then they cannot get out of the other.

Janette said...

BUT---on the sewing---I Chose to sew dresses. I have more chance of making much more selling those dresses (unless you are REALLY fast).
Neither of us are making an hourly wage in your situation. We both are being paid by piece- which is still a common practice.
Your formula does not work here.