Did our taxes last night and crunching some numbers this morning got me thinking. When it comes to our tax system I don't think I've ever heard anyone say they like it, agree with it, and think it's fair to everyone. It seems to be the one thing in our political environment that everyone agrees on, at least in the broad sense that it needs to be changed/reformed.

 

I don't want this to devolve into useless finger pointing. What I'm looking for are thoughts on what you think is solution. What is fair and what will work. Would like examples if you can. I don't want hyperbole or comments that don't add to the discussion.

 

Should everyone pay some % of tax? Should everyone pay the same %? When I say pay something I'm including all payroll tax, fed income tax, state tax.

 

For example my wife and I paid an effective rate of 8.05% in fed tax, 5.12% in state, 6.2% in SS, and 1.44% in Medicare. Again the fed and state was the effective rate. When compared to total income it was little lower %. When you compare the total of all 4 of these taxes to our gross income we paid 18.3%.

 

Is 18.3% of what you make too much to pay to the government? If you back out the state tax we paid 14.2% to the federal government. Again this is a % as compared to our total gross income, not adjusted gross. Is 14.2% too high or too low?

 

Thoughts

Before the Fed was created 'fair' was zero at the Federal level. It seems 'fair' has changed over time. So this will take some thinking.

 

And when counting the SS and Medicare should be the full amount. The fact that the half is hidden from you is a trick. If you were self employed you would owe 'both halves' directly and what employer pays is really 'your money'.

 

Also do not forget:

- Gasoline tax : 25-40% of the total cost of gasoline.

- Sales tax (state)

- Property taxes - house, autos

- Utility taxes

I've always believed Federal tax should be much lower and local and state taxes could be higher. I like the idea of money being closer to home.

Corporate taxation is the greater problem. The President addressed this in his speech last tonight. Individual taxation is complicated, but I wouldn't say it's unfair.

Too many loopholes in tax code...individual and personal. Needs to be a simpler tax code that EVERYONE pays.

 

To many working "Off the books" in this country either to dodge taxes, because they are here illegally, or hiding from law enforcement or child support.

Corporate taxation is the greater problem. The President addressed this in his speech last tonight. Individual taxation is complicated, but I wouldn't say it's unfair.

 

I have no problem with fixing corporate tax code as long as other regulations that make American businesses uncompetitive are corrected.

Before the Fed was created 'fair' was zero at the Federal level. It seems 'fair' has changed over time. So this will take some thinking.

 

And when counting the SS and Medicare should be the full amount. The fact that the half is hidden from you is a trick. If you were self employed you would owe 'both halves' directly and what employer pays is really 'your money'.

 

Also do not forget:

- Gasoline tax : 25-40% of the total cost of gasoline.

- Sales tax (state)

- Property taxes - house, autos

- Utility taxes

 

AND, there are other employer taxes on a person working ..state and federal unemployment + local head tax, plus taxes on required workers compensation insurances....it is almost endless these days.

I would like to see a flat tax rather than an income tax. Tax every item people buy some percentage. Rich people will pay more because they will buy more. Also, EVERYONE would pay taxes. "Under the table" pay wouldn't matter. Too many people not paying a dime in taxes in our country. It is not sustainable. Don't want to pay taxes? Don't buy anything.

Corporate taxation is the greater problem. The President addressed this in his speech last tonight. Individual taxation is complicated, but I wouldn't say it's unfair.

 

Two things don't surprise me: one...POTUS hasn't shown yet he has a clue about how the economy works...he just says what sounds popular; and two; you agree with him 100%.

I once heard a preacher in Dallas say that God asks for 10% and any government that asks for more is wrong to do so. Now I don't know if he meant 10% at each level like 10% in local tax, 10% in state tax, and 10% in federal tax. The government that we know today couldn't exist on 10% total for all 3 levels, and I'm a Republican saying that. As Bluegrasscard said there are other taxes you aren't thinking about. 30% over all 3 levels with no inheritance tax and many of the other taxes we have seems fair to me.

No I do not believe it is fair to tax the rich at a higher level before you ask.

Also at 35%, the United States has the highest nominal corporate tax in any of the world's developed economies. This should be 10% as well. Capital gains are not even taxed in some countries and should be included in the regular profit of companies and individuals and part of their regular 10% tax bill.

Yes, this is simple.

Yes, this would mean MAJOR changes for the federal government.

However, yes, it is fair.

I would like to see a flat tax rather than an income tax. Tax every item people buy some percentage. Rich people will pay more because they will buy more. Also, EVERYONE would pay taxes. "Under the table" pay wouldn't matter. Too many people not paying a dime in taxes in our country. It is not sustainable. Don't want to pay taxes? Don't buy anything.

 

This would be awesome and fair too.

Two things don't surprise me: one...POTUS hasn't shown yet he has a clue about how the economy works...he just says what sounds popular; and two; you agree with him 100%.

I'm 100 percent behind the Obama-Biden-Pelosi plan for growing America. The alternative would be backing a draconian GOP plan that would body-slam the average working person to reward corporate fat cats.

AND, there are other employer taxes on a person working ..state and federal unemployment + local head tax, plus taxes on required workers compensation insurances....it is almost endless these days.

 

I forgot about local payroll taxes - 2.25% in Fayette County.

 

The taxes and mandates on those evil employers is as bad as ever. There is a lot of 'burden' on every employee that is tied directly to their individual employment.

 

I did skip unemployment taxes since they are more buried. But to a business looking to hire they have to think about the addition UE tax. But like the gasoline taxes, at least this has a specific, tangible, measurable roll. So its a necessary evil...but if it gets to high or complex businesses will just stop hiring - Atlas will shrug.

I'm 100 percent behind the Obama-Biden-Pelosi plan for growing America. The alternative would be backing a draconian GOP plan that would body-slam the average working person to reward corporate fat cats.

Please tell us about the "plan".. Then explain how it's working.

Please tell us about the "plan".. Then explain how it's working.

The President spoke eloquently last night about his vision for 2014 and beyond. Unfortunately, it sounds as if you were one of those who tuned in to pro wrestling last night instead of listening to how the Obama-Biden team intends to move America forward.