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To: Mind-numbed Robot
See: #653 here from earlier today. I have always said that there is in the range of 8-10% MAX savings from the employer part of FICA, corporate taxes, and compliance savings.
81 posted on 09/02/2005 3:14:37 PM PDT by RobFromGa (Afghanistan, Iraq, Iran-- what are we waiting for?)
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To: RobFromGa
Thanks, I had not seen that. You covered most of the things I had in mind except I think the amounts, savings or costs, which ever way we care to look at it, are greater.

If you are going to give the wage earner his "full paycheck", you need to do the same for the business owner, ...

Isn't the elimination of the owner's taxes, regardless of the type of corporation, partnership, etc., worth considering? After all, it is the net, the after tax amount, that all business planning is based on. If gross is all that needs to be considered isn't that likely to affect business decisions, including pricing?

I think the absence of the income tax will have a much more dramatic influence on the economy than you do. I think the psychological freedom from the fear of the government is worth the whole effort. I do not see the pitfalls that are frequently mentioned to be any different than the present system and the pitfalls have a good chance of not happening at all under the FT.

In you 653 comments you mention the continuing need for accounting personnel for normal non-tax accounting purposes. I think you overlook or underestimate how much "normal" accounting is affected by having to correspond to tax accounting. Yet, the biggest change would be making business decisions without even thinking about the tax implications and that is also the biggest advantage.

Also, some, I don't remember if this is your case or not, seem to be defending their present business endeavors because they are benefiting from the present tax system and think they will be out of business if it is changed. To them I say:

To think you are taking advantage of the present tax system to make money is an illusion. You are basically saying that if you weren't doing what you are doing you would be paying that money to Uncle Sam instead of using it to make a living, so it is a zero sum game. Pay to the IRS, or pay it to yourself.

You are saying that if it weren't for the tax advantages it would not be worth doing. Maybe I will have another epiphany but for the life of me I can't see how they think that the elimination of that tax they are avoiding punishes them rather than benefits them. Maybe you can help explain that.

85 posted on 09/02/2005 3:57:41 PM PDT by Mind-numbed Robot (Not all that needs to be done needs to be done by the government.)
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