The Most Absurd 'Loophole' in the Tax Code

Breitbart ^ | 8 Dec 2012 | Mike Flynn

[9YearLurker]

That’s not actually how people spend their money. Lots of people spend their money on vacations, clothes, bigger houses, fancier cars, expensive restaurants, etc..

In our culture investing is more the exception than the rule.

The crony capitalism that GE plies is obscene—but that doesn’t have a thing to do with personal marginal tax rates.

[muawiyah]

lots of people spend an awful lot less on vacations and such these days than they used to.

if you think sumptuary taxes are necessary, get them passed ~ leave folk's savings alone, even if all they can put away are a few bucks here and there.

Many of our modest 'high earners' are also supporting other adults during the Great Obama Recession ~ they are making an investment ~

[Safetgiver]

Just an example. 2500, 3500 50,000 the point is the gov’t. will figure out what it’s worth.

[CodeToad]

These are the same pinheads that also said if you buy a product, let’s say a bar of soap, on sale for $1 versus a normal charge of $5 that $4 savings should be taxed.

[9YearLurker]

I’m for savings, whereas you’d be killing it by taxing savings income like regular earned income!

And I’m not for sumptuary laws—just not for killing people on unearned (investment) income.

[muawiyah]

look, people with enough surplus income to save do so ~ they understand how money is made. that they might give up saving is a ridiculous reason to tax people differently.

[9YearLurker]

So you don’t believe that taxation affects behavior?

Do you believe in the fundamental laws of economics?

[muawiyah]

The 'laws' of anything are most likely nothing more than DESCRIPTIONS OF SEQUENTIAL PROCESS.

The real 'laws' behind economics include the uncertainty principle ~ among other things. Now that's a law.

But, i think you want to argue something else ~ maybe you want me to believe that people of drive and ambition will just give up and crawl into caves if everybody pays the same tax rate.

Frankly, that is a bizarre belief. First, we'd have to imagine a world where there were no Jews ~ you can beat them down over and over and they keep coming back. You can destroy their communities, their culture, their population ~ and somebody will be out there rebuilding the instant the swords and firebrands go away.

Then, there are the Huguenots ~ it was noted during the time of their travails that France had run out of Jews to persecute, or to run businesses for them, so they created a new class of Jews ~ to wit, the Protestants whom the government persecuted in the same manner they had earlier persecuted the Jews.

No, I don't think eliminating meaningless categorizations of income of supposedly different types, and then taxing it at the same rate will cause the rich to give up hope and abandon the pursuit of money, nor will the poor give up the same ambition!

BTW, I'm in favor of eliminating the income tax and returning to the sort of taxation envisioned by the founders where the individual never came into contact with the federal tax collectors ~ all taxation was to be indirect at the federal level.

I thought I was clear on the matter when I started my part of the discussion by noting that 'if we are stuck with an income tax, it must do so and so, not this and that'.