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Pass-Thru Income Deduction

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Re: Pass-Thru Income Deduction

#61

Post by _m8fo »

I wonder if it'd be simpler to just eliminate all taxes except sales tax and have a progressive sales tax.

For example:

$0 - $20,000 - 0% (yes, poor people wouldn't pay sales tax. You could even make it so poor people get a discount, even.)

$20,001 - $40,000 - 5%

etc.

The above tiers would be defined by income plus assets times some interest rate, to represent potential gain on assets, if it were liquidated and invested. So if you had 1M in assets, and made $100,000 a year, your income would be $100,000 + 1M * federally defined interest rate.

The main difficulty with this would be that debit/credit cards would have to be issues by the government or there would have to be some collaboration between the government and banks in order to accurately determine purchases.

Re: Pass-Thru Income Deduction

#62

Post by woolvalley »

munk-a wrote: post #57
pascalxus wrote: post #56

Earlier quoted context omitted.

First of all, this bill mainly helps those earning less than 315K per family If you're making a big salary working for tech, your not as well off as you think. You may be earning x10 more than a the average "poor" person, but after income taxes, sales tax, property tax, etc, it's barely x5 to x6. And if google forces you to live on the penninsula, then your living costs are x5 to x10. I'm sure there are plenty of hig…

Granted, everything about this is in constant flux but... I thought the child exemptions were back in and stronger than before? Also, are you getting value out of living on the penninsula? If so, is it worth the cost you're paying? If not... move. There are plenty of companies outside of SV and now quite a few of the companies there have very flexible remote working options. As for your 10x income being reduced to 6x…

You get a somewhat reasonable commute. Fairly high value.

Re: Pass-Thru Income Deduction

#63

Post by danjoc »

pascalxus wrote: post #56
the_cat_kittles wrote: post #33

if you are happy that you can save some money this way, i think you are super lame. i am sad that over paid people like me and most of yall are now even less responsible for helping poor people (among other things, i know... )

First of all, this bill mainly helps those earning less than 315K per family If you're making a big salary working for tech, your not as well off as you think. You may be earning x10 more than a the average "poor" person, but after income taxes, sales tax, property tax, etc, it's barely x5 to x6. And if google forces you to live on the penninsula, then your living costs are x5 to x10. I'm sure there are plenty of hig…

>You may be earning x10 more than a the average "poor" person, but after income taxes, sales tax, property tax, etc, it's barely x5 to x6.

lol, you made me laugh.

"Look, I know it looks like I make more than you Mr Grocery Bagger, but I have a lot of property taxes on my mansion and Ferrari. So you see, I barely make 5 times more than you!"

Re: Pass-Thru Income Deduction

#64

Post by bungie4 »

_m8fo wrote: post #61

I wonder if it'd be simpler to just eliminate all taxes except sales tax and have a progressive sales tax. For example: $0 - $20,000 - 0% (yes, poor people wouldn't pay sales tax. You could even make it so poor people get a discount, even.) $20,001 - $40,000 - 5% etc. The above tiers would be defined by income plus assets times some interest rate, to represent potential gain on assets, if it were liquidated and inves…

Your assuming the very rich purchase proportionately more taxable goods and service than the lower classes do.

Re: Pass-Thru Income Deduction

#65

Post by emodendroket »

jfaucett wrote: post #54
emodendroket wrote: post #46

Earlier quoted context omitted.

Flat tax rates end up being pretty unfair when we're thinking about individuals because the less money you make the more it hurts you to give up 30% of your income. Maybe, arguably, flat tax would be OK for businesses, but it would be very regressive if applied to personal income tax.

Yes, I'd like to see experimenting with only a sales tax as well, so no income tax at all. You could then test a combination of the sales tax only with a flat corporate tax. These are all things hypothesized about and there has been a little bit of testing, but we really need to get on the ball with actually applying the scientific method to policy if we want to build more rapid progress in improving our societies.

Sales tax is even more regressive because the poorer you are the more likely you are to spend essentially all of your income. Sales taxes would have to go way up for that to work. We don't need to run an "experiment" to know the likely effects of this policy.

Re: Pass-Thru Income Deduction

#66

Post by pfranz »

mpolichette wrote: post #42

Super nit pick: Is it just me or is it a bit disheartening that they have defined this using the term `thru` which google defines as `informal spelling of through`? Isn't a legal document about as formal as one can get? I'm just worried it opens opportunity for confusion from the ambiguousness of language. Slippery slope: Next thing we'll see is a law defining how much of a deduction you get with the money with wings…

Maybe it was to reduce ambiguity? Often legal documents define terms up front ("the participant" refers to John Doe). If they choose a common work like "is" or "through" it can become a rubik's cube trying to correctly discuss it.

Re: Pass-Thru Income Deduction

#67

Post by _m8fo »

bungie4 wrote: post #64
_m8fo wrote: post #61

I wonder if it'd be simpler to just eliminate all taxes except sales tax and have a progressive sales tax. For example: $0 - $20,000 - 0% (yes, poor people wouldn't pay sales tax. You could even make it so poor people get a discount, even.) $20,001 - $40,000 - 5% etc. The above tiers would be defined by income plus assets times some interest rate, to represent potential gain on assets, if it were liquidated and inves…

Your assuming the very rich purchase proportionately more taxable goods and service than the lower classes do.

Well the idea is that the money will eventually be spent or transfered, and then during that event it would be taxed. I mean sure you could just let the money grow but I assume it would either be given to someone or spent eventually.

Re: Pass-Thru Income Deduction

#70

Post by CPLX »

rsync wrote: post #51
CPLX wrote: post #47

Earlier quoted context omitted.

> to be able to contribute more to... social security I don't think that makes a whole lot of sense. Do people actually do that?

I doubt many people expand their salary to maximize social security contributions but I can say with certainty that people expand their salary to allow maximal 401k contributions, which your parent also referred to ...

Well right. It's that social security idea that seems nuts. Hence my question.
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