What should be taxed? How would you change the tax system?
By divitiae
@divitiae (193)
May 19, 2010 4:26pm CST
What should be discouraged by tax?
Who should pay tax? Should we follow Rawls and ensure policy is acceptable to the least well of representative or should we encourage people to contribute by reducing the rate of tax as earnings go up as is done in Brazil?
1 person likes this
3 responses
@deebomb (15304)
• United States
20 May 10
Hello divitiae and welcome to myLot. If I were to write the tax code it would be straight across the board. I would have a flat tax as a percentage of wages and earnings lie 18%. The a sales tax on all luxuries like boats and high end cars and houses over a certain value. No matter how corporations are taxed it will be passed along to the consumer.
@deebomb (15304)
• United States
21 May 10
i was not talking about Capital Gains Tax that is based on your investment that could also be taxed at a flat rate. right now our income tax is something that could be simplified to the point where we could shrink the IRS and make it easy for any one to file. for lets say we made income 10% taxed. if you make 100,000 you pay 10,000. if you make 10,000 a year you pay 1,000. its that simple but right now if you make this much you have to deduct this much cause you qualify for this and you are this and this can help you deduct here. we as Americans get so fed up with Corporations cheating on taxes but we have a tax code so convoluted that it allows it. but if a small business makes a mistake they get nailed to the wall and destroyed.
@divitiae (193)
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22 May 10
If you end up paying the same rate whatever you do then why would people change ther behaviours?
If all oil companies have to pay more tax to cover spills dosen't that discourage any company from improving safty because they would bare all the cost and only a proportion of the benefit?
@divitiae (193)
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21 May 10
That would certainly simplify things but what would be the effect of no cgt? would people become more short termist?
Would this raise enough money? No VAT, no stamp duty, no import duties etc? Plus more opportunities to play the system, profit is opinion.
1 person likes this
@joanick27 (141)
• Philippines
20 May 10
I think everyone who has earning capacity should be taxed except those receiving minimum wage. Income, products and services should all be taxed if the source of the profit comes within the country concerned. This is fair taxation since every citizen should share the burden of paying governmental expenditures. If there are lapses in the taxation system, then it is the role of the legislative department to fill in the gaps.
@divitiae (193)
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20 May 10
But if people on min wage don't get taxed then we are not sharing equaly, for us to share equaly the less you earn the higher the rate of tax you would have to pay.
I think tax is a useful tool for controling peoples choices and therfore I would not set out to tax people equaly but rather according to their decisions.
@urbandekay (18278)
•
19 May 10
All tax should be on income and inheritance. Those that earn more should pay more.
all the best urban
@divitiae (193)
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20 May 10
I agree with taxing inheritance more, let people leave just over the average house price then the rest goes to the state.
That would also increase public spending as pensioners would have no reason to sit on the wealth.
I don't think this violates anyones rights because if you can leave more than enough for a house you won't have to worry about your kids.
I'm not sure about taxing income rather than consuptsion, the latter gives you more control but it hits the poor harder and both reduce public spending.
I think income maybe reduces spending less because the super wealthy wouldn't have spent as much as they are taxed anyway?
