Posted on 06/17/2024 3:32:37 PM PDT by Olog-hai
The IRS plans to end a major tax loophole for wealthy taxpayers that could raise more than $50 billion in revenue over the next decade, the U.S. Treasury Department says.
The proposed rule and guidance announced Monday includes plans to essentially stop “partnership basis shifting” — a process by which a business or person can move assets among a series of related parties to avoid paying taxes.
Biden administration officials said after evaluating the practice that there are no economic grounds for these transactions, with Deputy Treasury Secretary Wally Adeyemo calling it “really just a shell game.” The officials said the additional IRS funding provided through the 2022 Inflation Reduction Act had enabled increased oversight and greater awareness of the practice.
“These tax shelters allow wealthy taxpayers to avoid paying what they owe,” IRS commissioner Danny Werfel said.
Due to previous years of underfunding, the IRS had cut back on the auditing of wealthy individuals and the shifting of assets among partnerships and companies became common. …
(Excerpt) Read more at apnews.com ...
The return is better. The wealthy have the lawyers to make collections expensive.
These so called “loopholes” were put into LAW deliberately by the politicians at the behest of their Wealthy donors. They will be replaced almost immediately.
Elon Musk, not so drastically, perhaps, but he seems to be able to put his money to good use.
I do agree there should not be a VAT tax. So... Make it a retail only sales tax, so people really realize what the government costs!
Then, why not give everyone what would essentially be a debit card good for a year. It can only be used to pay retail sales tax. No information except the amount deducted from your "tax" card leaves the seller's register to be sent to the gov't. If you use up your card, the card is rejected and you get charged for sales tax, but, no moneys sent in are connected to information about individuals (much as sales taxes work now.) So basically you swipe that AND then your regular credit / debit card (or pay cash for items themselves) at the time of payment. Maybe the "tax card" is good for, oh, $20k? Or maybe less, but make some essentials tax free or low tax. In KY, the sales tax on most food is 0. In IL it is 1%. Etc.
There are surely details and kinks to be worked out, but there is no reason a consumption tax must be regressive.
Almost anything would be better than an income tax, partially because income tax returns also get used for so much social engineering / means testing.
I think everyone should pay 15 percent no matter your income and be done with it. The money saved by shutting down the IRS, attorneys, judges, tax preparers, ect would be huge.
Russia used to have a flat tax of 13%. But apparently that’s changing due to the war in Ukraine. But that’s not a bad thing for them. They’re on a war economy right now, similar to the American economy during WWII.
Oh, give me a break. I can GUARANTEE you Gates pays more in taxes under the current code than he ever will under a consumption tax. I can also guarantee you that you will pay far more under a consumption tax than under the current code.
or maybe just acknowledge that no consumption tax has ever existed that wasn’t regressive because we largely consume around the same amount.
Why not start by not double taxing corporate profits?
This way, I won’t have to read the notions of the wealthy being undertaxed on money that was already taxed once at the corporate level.
PS it is closer to 30% than 40%.
https://fred.stlouisfed.org/series/FYFRGDA188S
2023 FED 16.23% of GDP.
https://www.taxpolicycenter.org/briefing-book/what-are-sources-revenue-state-and-local-governments
State and local has averaged 15 percent of GDP since 1977.
Excellent point.
Musk, Buffet, Gates, Bezos, Zuckerberg etc.....income largely originated out of our pockets.
A minor inconvenience for the class warfare warriors.
Initiate repeal of the 16th Amendment replacing it with q 10-15% national sales tax. As part of the replacement constitutionally prohibit ANY form of income tax. If the government wants more money, they can make the nation business friendly.
Initiate a constitutional amendment to outlaw all forms of property tax. This returns property ownership to the people from the sovereign.
Initiate a constitutional amendment to remove the ability of congress or any federal government agency from writing tax law except in a national emergency. Said emergency would have to be approved by a super majority of state legislatures. (say 99.99999% of state legislatures.)
Initiate a constitutional amendment to forbid transfer payments of any kind by government. Will have to be phased in.
While a wish list, these would go a VERY long way towards correcting the ills of the federal and state governments. No more bribes.
A heavy progressive or graduated income tax.There’s a reason Woodrow Wilson wanted an income tax amendment: it enshrined part of the ten planks of communism in the US Constitution, the second plank in particular.
How about if I create a bunch of foreign shell companies to move my cash around?
You know, like Joseph Robinette Biden does.
Hunter Biden hasn’t been paying “his fair share”.
:(...
Revenue= hard working taxpayers money.
>Perhaps there should be a consumption tax instead.
Yes. But I prefer we return govt to its lawful/Constitutional size/scope BEFORE talking about what ‘skin the game’ is “required”
>20% national tax on everything that’s sold.
Per the above, 20% is WAY too high
>
There’s no point to maintain our tax code because if you’re wealthy, you’ll take advantage of loopholes anyway
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No, there’s no current reason for the tax code as:
1) Govt can currently print/borrow all it needs
2) The 16th violates the 4th, 5th, 13th & 14th on its face & should be null/void
Course, one doesn’t need to be ‘wealthy’ to take advantage of every tax ‘loophole’ available to ‘em.
Though, the Fair Tax (which you describe) is routinely poo-poo’d by the (R)N(C) as just another (L) pipe-dream *shrug*
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The poor should pay taxes too. Even if they receive benefits. There’s no such thing as a free lunch.
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There should NEVER exist ‘benefits’ (A1S8/5th/13th violating), esp. those ‘targeted’ (14th A. violating)
&, yes, NOBODY should pay $0% taxes for the govt they can vote for/in to benefit themselves from the fruits of another.
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If the government truly wished to increase taxes, it would move to a simple flat tax with no deductions.
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Meet the new boss, same as the old boss
1) STILL requires govt
2) Doesn’t encompass EVERYONE (only those w/ ‘income’)
3) NON-voluntary
4) Can still be easily tweaked back to the existing ‘progressive’ model (SEE #2) [”Flat tax, for those making > $X...”]
>Why not just chase the rich people away with sticks
They have. It’s called “Off-shoring”....*ALL* ‘thanks’ to govt.
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Consumption taxes are regressive. The result will be the exact opposite of your desires. You and Bill Gates consume roughly the same amount. Should you both be taxed on roughly equal consumption despite his earning billions and billions more than yourself?
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Yes, yes we BOTH should pay the same. His property isn’t mine, let alone govt’s ‘piggy bank’. Not does Gates, being ‘rich, utilize the same amount GOVT “services” than the ‘non-rich’ (public schools+)
Just as Gates shouldn’t be able to utilize govt for HIS benefit (A1S8, 5th, 13th, 14th)
Though, I prefer to return govt to its rightful/legal size/scope FIRST than worry what {X} is (not) ‘paying’
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Likewise, regardless of scheme Uncle Sam has collected 15% of the GDP in tax revenue since WWII.
For many years at this point, Uncle Sam is spending 25% of the GDP annually.
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Pretty soon, you run outta OTHER People’s $...happens EVERY time when Socialism+ is attempted. *shrug*
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I understand the confusion though, the guy paying more than next to nothing deserves to be a vilified for saving a few dollars-in some alternate universe.
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That ‘the poor’ can spend THEIR own $ on {X} ‘cuz they’ve been given $$ from {!X}’s pocket (violating Rights via illegal BIG govt) to piss away, while being able to vote for ever MORE largess from {!X}, yeah, I can’t see WHY they’d be vilified *rolls eyes*
[The ‘poor’ having shelter, h’care, food, utilities, A/C, car(s), gaming system(s), gamble, cell phones, tats/booze/smokes/drugs, etc., etc., etc.]
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