Tax Reform

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HDRider
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Re: Tax Reform

Postby HDRider » Mon Nov 20, 2017 11:45 am

slick4591 wrote:
HDRider wrote:
Craig Miller wrote:I see what youre saying hd. He has already paid tax on the money in his savings account right now and would then have to pay again as he bought stuff with that money. People like him would be out of luck on a deal like that

You got it.

Anyone and everyone that spent savings would be taxed twice.


Maybe I'm missing something, but I thought that's the way it is now. You pay federal taxes at payroll. You take some of the income money and stick it away in savings. When you make money on the savings you are taxed on any amount you earned in interest. If you take that savings money out and buy something with it you pay a sales tax, same as any money that didn't make it into savings. Not sure about all the other states but in Texas we don't have a state income tax. What am I missing?

It does not work that way today. We don't have a Federal Sales Tax now.

If we did away with Federal Income Tax and replaced it with a Federal Sales Tax then all that money earned under the "old" way was taxed the "old" way and would now be taxed again the "new" way with the new Federal Sales Tax.
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Re: Tax Reform

Postby HDRider » Mon Nov 20, 2017 11:46 am

True Grit Farms wrote:
HDRider wrote:
Craig Miller wrote:I see what youre saying hd. He has already paid tax on the money in his savings account right now and would then have to pay again as he bought stuff with that money. People like him would be out of luck on a deal like that

You got it.

Anyone and everyone that spent savings would be taxed twice.

Well everyone knows government wants you to spend and accrue debt. Savings are something only the rich have, and only the rich has the money to bail the country out. I feel we're going to be taxed till we can't afford to leave. Then government is going to steal a percentage from anyone who has any savings left to pay the debt off.

I would respond, but it would get be booted off CT.
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bball wrote: "The juice wasn't worth the squeeze."
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Re: Tax Reform

Postby HDRider » Mon Nov 20, 2017 11:49 am

Brute 23 wrote:
HDRider wrote:
Craig Miller wrote:I see what youre saying hd. He has already paid tax on the money in his savings account right now and would then have to pay again as he bought stuff with that money. People like him would be out of luck on a deal like that

You got it.

Anyone and everyone that spent savings would be taxed twice.


That's not true. It depends on where your "savings" is. If it is in a tax deferred retirement account like a 401K or traditional ira you did not pay taxes on it already.

I understand that. But a Roth IRA would get double taxed.

I ain't talking about that. I am just talking about regular old money sitting in the regular old bank. This ain't complicated.
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bball wrote: "The juice wasn't worth the squeeze."
Dun said, "You gotta be flexible. Do whatever you have to do for the best results within your limitations."

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Caustic Burno
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Re: Tax Reform

Postby Caustic Burno » Mon Nov 20, 2017 12:11 pm

Craig Miller wrote:I see what youre saying hd. He has already paid tax on the money in his savings account right now and would then have to pay again as he bought stuff with that money. People like him would be out of luck on a deal like that


I am one of those out of luck people and this is the only fair way everyone pays their share is a national sales tax.
He is being taxed on the interest today,
that goes away as well on sales tax.
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Re: Tax Reform

Postby Brute 23 » Mon Nov 20, 2017 12:22 pm

HDRider wrote:
Brute 23 wrote:
HDRider wrote:You got it.

Anyone and everyone that spent savings would be taxed twice.


That's not true. It depends on where your "savings" is. If it is in a tax deferred retirement account like a 401K or traditional ira you did not pay taxes on it already.

I understand that. But a Roth IRA would get double taxed.

I ain't talking about that. I am just talking about regular old money sitting in the regular old bank. This ain't complicated.


So it should be completely market off the list because of that? You would not be for it based on that alone?

I am with CB. I have savings also and I would be all for it because the good would far out weight the bad. Plus, I bet there is a way they could credit you for that money. In no way do I consider that a deal breaker. Your getting taxed multiple times now with the current system so at least it's a means to an end.
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Re: Tax Reform

Postby HDRider » Mon Nov 20, 2017 2:40 pm

Brute 23 wrote:
HDRider wrote:
Brute 23 wrote:
That's not true. It depends on where your "savings" is. If it is in a tax deferred retirement account like a 401K or traditional ira you did not pay taxes on it already.

I understand that. But a Roth IRA would get double taxed.

I ain't talking about that. I am just talking about regular old money sitting in the regular old bank. This ain't complicated.


So it should be completely market off the list because of that? You would not be for it based on that alone?

I am with CB. I have savings also and I would be all for it because the good would far out weight the bad. Plus, I bet there is a way they could credit you for that money. In no way do I consider that a deal breaker. Your getting taxed multiple times now with the current system so at least it's a means to an end.

What other double taxes do you know of?
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Re: Tax Reform

Postby Caustic Burno » Mon Nov 20, 2017 2:58 pm

SS income is taxed when it’s made and when it’s paid.
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Re: Tax Reform

Postby Brute 23 » Mon Nov 20, 2017 3:08 pm

Corporate taxes and estate taxes are both double taxes.
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Re: Tax Reform

Postby TexasBred » Mon Nov 20, 2017 4:30 pm

Caustic Burno wrote:SS income is taxed when it’s made and when it’s paid.

Only if "other income" brings total income up to a level that would cause it to be taxed. Otherwise, no it is not taxed.
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Re: Tax Reform

Postby HDRider » Mon Nov 20, 2017 4:51 pm

Brute 23 wrote:Corporate taxes and estate taxes are both double taxes.

You will have to explain to me how the same person pays taxes twice on those two things.
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bball wrote: "The juice wasn't worth the squeeze."
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Re: Tax Reform

Postby Caustic Burno » Mon Nov 20, 2017 4:56 pm

TexasBred wrote:
Caustic Burno wrote:SS income is taxed when it’s made and when it’s paid.

Only if "other income" brings total income up to a level that would cause it to be taxed. Otherwise, no it is not taxed.


After 44k it’s taxable at 85%.
If you are making less than 44k Your scraping by. The average income in Texas per household is 55k.
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Re: Tax Reform

Postby Son of Butch » Mon Nov 20, 2017 4:59 pm

The last time congress set out to simplify the tax code it turned into the 'tax accountant' rewards program.
Flat rates and simplification is not in a tax attorney's best interest.

p.s.
Seems everything in America that isn't a service or consumable gets taxed about 3-4 times.
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Re: Tax Reform

Postby HDRider » Mon Nov 20, 2017 5:03 pm

Caustic Burno wrote:
TexasBred wrote:
Caustic Burno wrote:SS income is taxed when it’s made and when it’s paid.

Only if "other income" brings total income up to a level that would cause it to be taxed. Otherwise, no it is not taxed.


After 44k it’s taxable at 85%.
If you are making less than 44k Your scraping by. The average income in Texas per household is 55k.

It will be taxed at 100% when you spend it with your plan.

And that is 85% at your effective tax rate of about 12% on the amount in excess of 44K.
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bball wrote: "The juice wasn't worth the squeeze."
Dun said, "You gotta be flexible. Do whatever you have to do for the best results within your limitations."

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Re: Tax Reform

Postby HDRider » Mon Nov 20, 2017 5:04 pm

Son of Butch wrote:The last time congress set out to simplify the tax code it turned into the 'tax accountant' rewards program.
Flat rates and simplification is not in a tax attorney's best interest.

p.s.
Seems everything in America that isn't a service or consumable gets taxed about 3-4 times.

Not on the same person.
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bball wrote: "The juice wasn't worth the squeeze."
Dun said, "You gotta be flexible. Do whatever you have to do for the best results within your limitations."

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Caustic Burno
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Re: Tax Reform

Postby Caustic Burno » Mon Nov 20, 2017 5:08 pm

Son of Butch wrote:The last time congress set out to simplify the tax code it turned into the 'tax accountant' rewards program.
Flat rates and simplification is not in a tax attorney's best interest.

p.s.
Seems everything in America that isn't a service or consumable gets taxed about 3-4 times.


Try a gallon of diesel.
This is the real hidden gem.
Taxed at the refinery, tank farm, pipeline, service station and the pump.
It’s a 1.86 out the refinery today.
Everything in this country from a settin of eggs to a roll of toilet paper rides on
diesel.
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