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Thread: Progressive tax rates.

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    Progressive tax rates.

    Progressive tax rates:

    I am not opposed to progressive taxation in principle. But although progressive income taxes seem deceptively simple, we should appreciate their complexities in actual practices.

    [If you have a room full of competent and usually expensive) tax attorneys and/or accountants examining the books of even what may be considered as medium-sized USA commercial enterprises, there's likely to be significant differences of professional opinions regarding what are many of those enterprises' annual taxable incomes and what is their tax obligations. The same professionals could and possibly would make reasonable but differing opinions if they were employed by the taxpaying enterprise or the tax-collecting agency.]

    A substantial portion of our complex tax regulations comes about by “fixing” the actual or perceived inequities of our progressive tax regulations,
    Each lobbyist argues for tax relief on behalf of their clients. (Those less wealthy account for lesser contributions to political funds and generally lack influential lobbyists to argue their cases).

    The additional regulations continue to grow like the additional layers on an onion under the ground and each of them was supposed to eliminate a tax inequity but usually evoked the need for another regulation to fix what's due to the previous modifications of the tax codes had become additional tax inequities detrimental to some other lobbyists' clients.

    Our federal income taxes are not nearly as progressive as their opponents would have us believe them to be. But we cannot afford the reduction of tax revenue if we eliminate progressive income tax.

    Respectfully, Supposn
    Last edited by I'm Supposn; 05-29-19 at 10:32 PM.

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    Re: Progressive tax rates.

    Quote Originally Posted by Stuartbirdman View Post
    Aside from their obvious simplicity, the latest flat tax proposals are being pitched as a broad tax cut for the middle class. But, in fact, most Americans would end up paying a greater share of their income — except the very rich


    Stuartbirdman, I agree, we cannot afford the reduction of tax revenues if we eliminate progressive income tax.

    The “Fair tax” was proposed as a 23% sales tax that would eliminate (at least) the individual personal income tax and employees' 7.65% portion of FICA tax revenues.
    Additionally, the proposal included a monthly“prebate”, (i.e a prepaid rebate) to compensate taxpayers for sales taxes they paid for necessities or almost necessities.
    I consider meaningful monthly “prebates” as a highly optimistic concept. I doubt that our congress would deliver it as promised.

    I doubt that a federal 23% sales tax could replace our entire individual personal income tax and employees' 7.65% portion of FICA tax revenues. Employers portion of FICA and other corporate taxes would be "off the table".
    If the fair tax were enacted 23% federal + 8% state and local taxes = 31% sales tax. Many would consider a 31% sales tax and so many opportunities to conceal sales and trades, as well justifying their risking criminal charges of tax evading.

    Respectfully, Supposn

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