What is the real purpose for the tax code and IRS?

[donttread]

Most Americans would probably say something the effect of "Why, to collect taxes of course."
When in reality that is a miniscule portion of what the tax code and the tax police are all about.
The real purpose of course is to control our spending behavior in order to control where investment and spending occur, which makes for easy vote grabbing and salability to corporate campaign contributors. I can remember in the late 1980's being amazed that I could not deduct my college tuition but being able to deduct credit card interest. Now exactly how did that serve America's interest?
More recent is the IRA/ 401K deduction: If you want to invest a few grand a year in real estate, local small businesses or anything else you must pay taxes on the money first, but if you want to utilize a 401K to invest in the stock market you do not have to pay tax on the money first. This, of course has lead to record stock investment and record profiteering, mostly for wall street and the rich who in turn fund election campaigns. Taking it one step further, how is it in the best interest of America to reward people via the tax code for having more children in an over populated country in an over populated world? Or to give home ownership a competitive advantage over other major spending options? Both are however great vote getters. Or to have rich people pay less tax on interest income that many pay on earned income?
A flat tax, Fair Tax or graduated income tax without loopholes would be a far more efficient way to get the job done but would not afford the government the control they so relish.

[hanger4]

It's political power. Tis the only real power politisns have.

[patrickt]

A. To rake in tax money for the politicians to spend on their friends and families.
B. To support the liberals in Washington and attack any they deem to be in opposition.
C. To make like miserable for Americans.

[MrJimmyDale]

Of course they want people investing in property and retirement accounts. How many years will it be before they take over both against our will?

[donttread]

Of course they want people investing in property and retirement accounts. How many years will it be before they take over both against our will?

Rhetorical question? Because the retirement accounts are already at risk

[Chris]

Protection racket.

[Peter1469]

Rhetorical question? Because the retirement accounts are already at risk Congress has started to raid the federal retirement accounts like they have with Social Security.

[The Sage of Main Street]

Most Americans would probably say something the effect of "Why, to collect taxes of course."
When in reality that is a miniscule portion of what the tax code and the tax police are all about.
The real purpose of course is to control our spending behavior in order to control where investment and spending occur, which makes for easy vote grabbing and salability to corporate campaign contributors. I can remember in the late 1980's being amazed that I could not deduct my college tuition but being able to deduct credit card interest. Now exactly how did that serve America's interest?
More recent is the IRA/ 401K deduction: If you want to invest a few grand a year in real estate, local small businesses or anything else you must pay taxes on the money first, but if you want to utilize a 401K to invest in the stock market you do not have to pay tax on the money first. This, of course has lead to record stock investment and record profiteering, mostly for wall street and the rich who in turn fund election campaigns. Taking it one step further, how is it in the best interest of America to reward people via the tax code for having more children in an over populated country in an over populated world? Or to give home ownership a competitive advantage over other major spending options? Both are however great vote getters. Or to have rich people pay less tax on interest income that many pay on earned income?
A flat tax, Fair Tax or graduated income tax without loopholes would be a far more efficient way to get the job done but would not afford the government the control they so relish.

Confiscate all inheritance over a certain amount that would not put Heirheads in positions they couldn't get on their own. We should prefer to tax the dead and never have to tax the living again. Or are we afraid of ghosts? Must be, because allowing a hereditary aristocracy is a primitive superstition.

[MrJimmyDale]

Congress has started to raid the federal retirement accounts like they have with Social Security. I was thinking retirement accounts like 401k's..........once we get to hyperinflation and they finally hit whatever the magic number is ($30trillion???) in deficits......what is to stop them from taking everything?

[donttread]

I was thinking retirement accounts like 401k's..........once we get to hyperinflation and they finally hit whatever the magic number is ($30trillion???) in deficits......what is to stop them from taking everything?


Nothing . It's not like it's under the mattress where you can defend it. They can just demand the access numbers from the financial instiution and ... gone

[MrJimmyDale]

Nothing . It's not like it's under the mattress where you can defend it. They can just demand the access numbers from the financial instiution and ... gone The same for our property.......

[Peter1469]

That would be theft. I didn't get an education in order to make lots of money only to have the State take it when I die.


Confiscate all inheritance over a certain amount that would not put Heirheads in positions they couldn't get on their own. We should prefer to tax the dead and never have to tax the living again. Or are we afraid of ghosts? Must be, because allowing a hereditary aristocracy is a primitive superstition.

[Peter1469]

I was thinking retirement accounts like 401k's..........once we get to hyperinflation and they finally hit whatever the magic number is ($30trillion???) in deficits......what is to stop them from taking everything?

Yes, the Obama administration has been floating that concept since his first election for president. Link (http://www.businessweek.com/investor/content/jan2010/pi2010018_130737.htm).


The U.S. Treasury and Labor Departments will ask for public comment as soon as next week on ways to promote the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams, according to Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Secretary Mark Iwry, who are spearheading the effort.

[Bob]

Congress has started to raid the federal retirement accounts like they have with Social Security.

I hate to hear of that.

[Bob]

Confiscate all inheritance over a certain amount that would not put Heirheads in positions they couldn't get on their own. We should prefer to tax the dead and never have to tax the living again. Or are we afraid of ghosts? Must be, because allowing a hereditary aristocracy is a primitive superstition.

Why the fuck do you not merely like government, but you love it. YOU are in love with government.

Good god. They have managed to ruin many lives and you LOVE them!!!!!!!!!!!!!!

The public is not cattle. You do not let the bastards in DC put us in cages to shear and use for steaks.

It is not the fault of the rich. They earn their money. The Feds do not.