No, you idiots. That’s not how taxes work. – an accountant’s guide to why you are a g

[BaghdadBob]

No doubt. The IRS is a joke. It complicates itself to justify itself.

Combine a Flat Tax and a national Sales Tax. No deductions. No one should pay for your decisions.
I am also for elimination of the corporate sales tax. Make it part of the National Sales Tax. Then it is collected on sellers from any country that want to sell in the USA.
Cut the IRS by 90%.

A national sales tax is a very bad idea. While it is efficient for collection it is an unnecessary burden on commerce & the working poor. For example: the European Union population is about 50% larger than the US, but their GDP is about 10% less than ours, and can be directly attributed to their social welfare & the VAT.

Our entire national debt can be attributed to social welfare. Simply eliminate federal social welfare & its supporting bureaucratic infrastructure. and we could have a flat income tax in the 15% range with minimal deductions, and tax advantaged healthcare savings & retirement accounts.

However, business tax law would also need to be addressed. Those taxes could be eliminated by adding a 10% import duty on everything coming into the country.

[Peter1469]

Practically anything and everything is a deduction. It's akin to private gains and public risk. I would think a conservative such as yourself would be opposed to that.

I don't know anything about the deductions available, so I don't have an opinion on it.

I suspect the deductions are to incentivize the private sector to build large capital projects.

[Peter1469]

A national sales tax is a very bad idea. While it is efficient for collection it is an unnecessary burden on commerce & the working poor. For example: the European Union population is about 50% larger than the US, but their GDP is about 10% less than ours, and can be directly attributed to their social welfare & the VAT.

Our entire national debt can be attributed to social welfare. Simply eliminate federal social welfare & its supporting bureaucratic infrastructure. and we could have a flat income tax in the 15% range with minimal deductions, and tax advantaged healthcare savings & retirement accounts.

However, business tax law would also need to be addressed. Those taxes could be eliminated by adding a 10% import duty on everything coming into the country.

The FAIR tax eliminates all income taxes and replaces it with a sales tax with a rebate - that helps the poor, who can further avoid the tax by buying used.

[Dr. Who]

It's hardly surprising that the tax code contains a million loop holes for big business and the wealthy. Who else can afford to constantly lobby Congress for these changes and buy favors with elected officials by backing their electoral campaigns?

Most of the very wealthy entrepreneurial types put the ownership of their private property assets under their businesses, so that they can write them off. They can effectively live for free in terms of accommodation and vehicles and find creative ways of billing their vacations and all manner of other sundry personal expenses as business expenses. With their businesses covering the bulk of their personal expenses, they pay themselves minimal salaries (on a relative basis) and thereby reduce their personal taxable income. Creative accounting always includes a fair bit of shall we say deceptive practices, on the parts of both the taxpayer and their accountant.

[carolina73]

Practically anything and everything is a deduction. It's akin to private gains and public risk. I would think a conservative such as yourself would be opposed to that.

Noting like it was.
When the max rate was 90% the realized avg rate was 53 points lower.
After Reagan and Trump simplifications it is only about 15 points lower.

[carolina73]

I'm not opposed to some of these ideas. Regardless of ones position on taxes people who can afford slick accountants and lawyers shouldn't have an advantage. Just simplify it.

Exactly. Tax policy is used for vote buying. The Real Estate organizations run in every time the mortgage deduction come up for discussion. It is their view that others should pay to increase their sales and make people over-buy a home.

[Peter1469]

Exactly. Tax policy is used for vote buying. The Real Estate organizations run in every time the mortgage deduction come up for discussion. It is their view that others should pay to increase their sales and make people over-buy a home.

Mortgage interest deduction is all but dead with the 2017 tax reforms. Since the standard deduction was doubled, most homeowners no longer itemize.

The only reason that I did the last two years was medical deductions (dental) made it worthwhile to itemize. This next tax year, I will take the standard deduction.

[ripmeister]

I don't know anything about the deductions available, so I don't have an opinion on it.

I suspect the deductions are to incentivize the private sector to build large capital projects.

I think that is true.

[countryboy]

Practically anything and everything is a deduction. It's akin to private gains and public risk. I would think a conservative such as yourself would be opposed to that.

Lol, in other words, you have no idea.

[Mini Me]

No doubt. The IRS is a joke. It complicates itself to justify itself.

Combine a Flat Tax and a national Sales Tax. No deductions. No one should pay for your decisions.
I am also for elimination of the corporate sales tax. Make it part of the National Sales Tax. Then it is collected on sellers from any country that want to sell in the USA.
Cut the IRS by 90%.

Flat tax schemes always benefit the rich!