ITT we talk TAXES!

[AGDee]

Originally Posted by PiKA2001

No, I'm talking income tax and unless the kid has a job and payroll taxes are being deducted from his check, he wouldn't be liable.

AFAIK The progressive tax rates currently in use has nothing to do with lower wage earners having zero to little tax liability, it's the tax credits in place that are saving some from the 10% bracket ( was 15% before GWB). If you believe that an across the board tax will hinder lower wage earner than what is the income to start taxing people at? 25k, 30k, 40k?

The government WILL tax the poor, trust me. It may not always be out in the open like income taxes but lottery, sin taxes, proposed "fat" taxes, sales taxes, and VAT taxes are all designed to get money from the people who are able to slink past paying income taxes.

Your flat tax idea would double my income tax liability.. so, no thanks Now once my kids are grown and out of the house and I can go rent an apartment, sure! I believe that if mortgage interest was not deductible, it would further hurt the housing industry. There would be no incentive whatsoever to own a house. I would also have no incentive, nor would I be financially able to, donate as much to charity as I do. I would also be less inclined to invest for retirement with pre-tax dollars into the stock market. I believe the flat tax would hurt the middle class the most.

The difference with sin taxes is that I have a choice in those. However, most of those are state taxes anyway and wouldn't be affected by your flat rate tax.

Keep in mind that you won't always be single with no kids and no house and whether it would really be to your advantage then.

[PiKA2001]

Originally Posted by AGDee

Your flat tax idea would double my income tax liability.. so, no thanks Now once my kids are grown and out of the house and I can go rent an apartment, sure! I believe that if mortgage interest was not deductible, it would further hurt the housing industry. There would be no incentive whatsoever to own a house. I would also have no incentive, nor would I be financially able to, donate as much to charity as I do. I would also be less inclined to invest for retirement with pre-tax dollars into the stock market. I believe the flat tax would hurt the middle class the most.

The difference with sin taxes is that I have a choice in those. However, most of those are state taxes anyway and wouldn't be affected by your flat rate tax.

Keep in mind that you won't always be single with no kids and no house and whether it would really be to your advantage then.

No financial incentive to own a house? Umm, I can think of a few reasons why owning is more attractive than renting, especially if you go with a short term (15 yr or less) mortgage. Do people really buy a house just to write off the mortgage interest? I don't think they do. The sin tax was mentioned as an example of a regressive tax that targets the poor. I still believe that a flat tax ISN'T regressive. The fact is, we need major tax reform and just getting money from the Daddy Warbucks of America isn't going to cut it. Ive read that only half of the people who file with the IRS actually have a tax liability, the other half get a full refund +. We can't sustain that. We need to collect more revenue from more Americans.

[summer_gphib]

I manage a tax office, and while a flat tax would end my industry, I'm a big fan of it. Someone can come into my office, make $17000, pay no income tax in during the year, and leave with a check for over $10K. That is not a fair tax system. Granted they have 3 children, but I, nor any other taxpayer made them have those kids.

Earned income credit + the refundable additional child tax credit are the bane of my existence. My hubby and I both work, and have paid a small fortune in taxes this year, and will be fortunate to not owe. And yes we own a home, and itemize. But because we choose not to have children, we pay more in taxes.

[AlphaFrog]

While I've filed taxes since I was 16, and filed with dependents, etc for the last 6 years, I feel like this will be my first year filing "Big Girl Taxes" with dependents, mortgage writeoffs, business writeoffs, and charitable contributions.

Although, it's bittersweet, since I found out recently that I owe a chunk from a mistake I made in 2008... last time I will ever use Quickbooks reports instead of waiting for my W-2. My refund is pretty much all going to that.

[AOII Angel]

Originally Posted by PiKA2001

No financial incentive to own a house? Umm, I can think of a few reasons why owning is more attractive than renting, especially if you go with a short term (15 yr or less) mortgage. Do people really buy a house just to write off the mortgage interest? I don't think they do. The sin tax was mentioned as an example of a regressive tax that targets the poor. I still believe that a flat tax ISN'T regressive. The fact is, we need major tax reform and just getting money from the Daddy Warbucks of America isn't going to cut it. Ive read that only half of the people who file with the IRS actually have a tax liability, the other half get a full refund +. We can't sustain that. We need to collect more revenue from more Americans.

I did. I would never buy another house again if it weren't for the tax write-off. Too much trouble to get rid of when I want to move, and too much trouble to take care of. I much prefer to rent. If there is something wrong, I just call my landlord, and he takes care of it. Home ownership is not the end all be all of life.

[AGDee]

Originally Posted by PiKA2001

No financial incentive to own a house? Umm, I can think of a few reasons why owning is more attractive than renting, especially if you go with a short term (15 yr or less) mortgage. Do people really buy a house just to write off the mortgage interest? I don't think they do. The sin tax was mentioned as an example of a regressive tax that targets the poor. I still believe that a flat tax ISN'T regressive. The fact is, we need major tax reform and just getting money from the Daddy Warbucks of America isn't going to cut it. Ive read that only half of the people who file with the IRS actually have a tax liability, the other half get a full refund +. We can't sustain that. We need to collect more revenue from more Americans.

Originally Posted by AOII Angel

I did. I would never buy another house again if it weren't for the tax write-off. Too much trouble to get rid of when I want to move, and too much trouble to take care of. I much prefer to rent. If there is something wrong, I just call my landlord, and he takes care of it. Home ownership is not the end all be all of life.

Precisely. I have poured so much money into my house and it needs so much more poured into it. I've had a very reasonable mortgage interest rate (no crazy rates, etc.) and have been paying on it consistently for almost 11 years and still have an upside mortgage. I'm stuck in this house for God knows how long and I would have happily rented if I didn't want the mortgage interest tax break. Someone else would be shoveling my snow and mowing my lawn too. I can't wait to get rid of the house.