Tax Reform

[slick4591]

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?

 

[Craig Miller]

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?

First your taxed only on the interest you earn.. i.e. income tax. Second when you spend money you only pay a state sales tax and they are talking about adding a national sales tax on top of the state sales tax

 

[True Grit Farms]

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.

 

[slick4591]

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?

First your taxed only on the interest you earn.. i.e. income tax. Second when you spend money you only pay a state sales tax and they are talking about adding a national sales tax on top of the state sales tax

That national sales tax is what I missed.

 

[Brute 23]

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.

 

[HDRider]

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.

 

[HDRider]

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.

 

[HDRider]

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.

 

[Caustic Burno]

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.

 

[Brute 23]

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.

 

[HDRider]

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?

 

[Caustic Burno]

SS income is taxed when it’s made and when it’s paid.

 

[Brute 23]

Corporate taxes and estate taxes are both double taxes.

 

[TexasBred]

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.

 

[HDRider]

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.

 

[Caustic Burno]

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.

 

[Son of Butch]

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.

 

[HDRider]

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.

 

[HDRider]

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.

 

[Caustic Burno]

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.