i would agree but i suspect a few traders on et might have a problem with it. traders are another group that have a privileged tax situation.
Not nearly so much any more. There is a threshold where AGI disallows deductions and kicks in the AMT. Depreciation tables have changed drastically as well. And another thing, joint incomes up to $50K pay no federal income tax FYI. In fact, they get EIC tax credits - they get a check from the Treasury just for filing a tax return that shows no payments into the IRS.
Good point. As traders, perhaps we should end our tax discussion here! On the other hand, those privileges are offset by the limited loss deductions per year we can make, though if my tax accountant (my wife) is correct, we can sum those prior years of loss deductions during a great year. Most of the points in my discussion were related to my other endeavors, however, as I am not yet to a point where I am profitable as a trader. This year will be my first (fingers crossed). My wife was insufferably pleased that I only traded the e minis last year! (But only because the lack of a profit was slightly offset by the simplicity of filing!)
All this disagreement would be unnecessary if only something like this was in place: www.fairtax.org Think of the joy of never having to file another personal income tax return. And, think of this: 1. No corporate or business income taxes. 2. No capital gains taxes. 3. No social security taxes. 4. No medicare taxes. 5. No estate taxes. 6. No gift taxes. All those taxes will be replaced with a simple sales tax, on new goods and services. April 15th will be just another lovely spring day!...ahhhh....smell the aroma! Of course, Alka-Seltzer sales will probably drop dramatically, but hey, we'll survive that. Folks, if you have never read "The FairTax Book", I highly recommend it. Don't listen to what politicians and some people on TV say, get the book and read it for yourself! (It's only around 200 pages...and, easy to read.) It is one of the best books I have read in my lifetime! Okay...Now back to our regularly scheduled nonsense. Carry on.
But you will pay a tax on: Purchases of new homes Rent Interest on credit cards, mortgages and car loans Doctor bills Utilities Gasoline (30 percent in addition to current taxes, which would not be repealed) Legal fees Police and fire protection and lots more. Just think, you check out of the hospital after life saving surgery owing $100K to the hospital and about $30K to Uncle Sam. Who pays that tax? Will your insurance cover it? What if you don't have insurance? Now, the hospital usually writes it off; will the Govt do the same? Remember, at least where I live, about 25% of the population has no health insurance. Will Medicare and Medicaid pay this tax? Enuff on this topic, Seneca
Enuff on this topic, really?? Since you obviously are clueless, not because you are dumb, but because you haven't read the book, let me make a suggestion. Do me a favor. No, do yourself a favor. Sneak into a bookstore and take a peak at page 160. After you slap yourself in the face, go ahead and make a purchase and enlighten yourself. But, trust me on this: The people who drew this up and studied it are way smarter than you and me. Have fun!
I've no plans to do that and I've read HR25. Why has this been tried in 21 countries and failed? 20 of those countries had it morph into a VAT. The book was written by zealots favoring HR25; I like to learn from history so we don't repeat its mistakes.
Okay SR. Have fun anyway. So, you see, folks... I can lead a horse to water, but I can't make it float on its back. A consumption tax is the best, most transparent, and fairest tax system in the world.
its unworkable. i think the fed is trying to encourage consumption. putting a 25-30%% tax on consumption is going to discourage it. it would be great for the well off though. i could see a senario where it would be possible to make billions and pay almost nothing. its interesting that all of the tax reform proposals floated by right wingers have the rich coming out smelling like a rose at the expense of the working class.