Taxes

but then there are also many people, my own family included, who really have depended on limited welfare because there really aren't any good alternatives. And I really don't get how some people live comfortably on welfare. No-one I know who receives benefits lives well off. It's a meagre amount.
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I agree. I was on benefits once as I was unemployed. Having worked for some large financial institutions, I was dumped into unemployment in the middle of a recession. I wasn't sponging. I wanted to save money to go travelling. I applied for a data entry job where the requirement was 40 words per minute. I can do double that, easily. I applied and despite the fact that I had a work history in more important roles than that, they didn't even respond.

As for benefits being cushy... They aren't. Goodbye healthy diet, hello horrible processed food.
 
Then they want to continually raise taxes to keep the revenue up, but raising taxes lowers sales which lowers revenue...I swear some of the stupidest people in the world hold political office in the US.

It is not exclusive to the US.
The point is indeed if you tax tobacco to give health care to lung cancer patients, when your revenue would decline your spending would decline and it seems logical. If you start linking things that are not related, it will never work, even they understand that, but they will be out of office when the problem rises.

Mark T Stamp Duty is also wrong, having to pay tax for the privilege of buying a house is robbery.

Will that house be the little house on the prairie, or will it be linked to roads, electricity, internet, ....
I'm renovating a house in an isolated area, the investments in infrastructure are enormous, the equivalent of "Stamp Duty" is low.
 
It is not exclusive to the US.
The point is indeed if you tax tobacco to give health care to lung cancer patients, when your revenue would decline your spending would decline and it seems logical. If you start linking things that are not related, it will never work, even they understand that, but they will be out of office when the problem rises.



Will that house be the little house on the prairie, or will it be linked to roads, electricity, internet, ....
I'm renovating a house in an isolated area, the investments in infrastructure are enormous, the equivalent of "Stamp Duty" is low.

Well it's in a village and it has most likely been connected to mains gas, water, electricity and telephone since the 1950's. If the government were funding all those connections then I would be happy to pay stamp duty as it would save me thousands.
 
The government seems to get their power by the delegation of power from the people (at least that is the democratic stance).

So if the government can ask me for taxes, I can revoke that delegation of power and ask the government for taxes? Or is there no right to ask for taxes?
Can we limit it to a payment for the use of services?
How should we pay for the military and legal system?
 
The government seems to get their power by the delegation of power from the people (at least that is the democratic stance).

So if the government can ask me for taxes, I can revoke that delegation of power and ask the government for taxes? Or is there no right to ask for taxes?

The US Government get's its right to tax its citizens from the 16th Amendment of the US Constitution, and more broadly from the "Powers of Congress - Section 8" of the US Constitution, which says: "The Congress shall have power to lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common defence and general welfare of the United States...".

Both of these Sections of the US Constitution could be modified/revoked if two thirds of Congress voted to amend the US Constitution, and then three fourths of the States ratified the amendment.

I'm not sure if I fully understand your question about asking for taxes. Are you proposing that US citizens should have the right to ask the Government to institute some more specific taxes that would benefit specific individuals?

New tax proposal:
-----------------
My neighbor parks his Pontiac Aztek in his driveway. Viewing this vehicle every morning subjects me to cruel and unusual punishment.

Aestheticaly challenged vehicles of this sort should be subjected to a new tax that would get paid out to any neighbor who lives within 5 miles of said vehicle.:lol:

You may need to avert your eyes: Wikipedia for Pontiac Aztek

Or do you want the Government to refund some of the taxes it collects?

Something like the Earned Income Credit? For 2012, qualifying US taxpayers can get a refundable credit of $3,169 if they have one qualifying child and their earned income is less than $36,920.

Respectfully,
GTsail
 
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...I'm not sure if I fully understand your question about asking for taxes. Are you proposing that US citizens should have the right to ask the Government to institute some more specific taxes that would benefit specific individuals?

Why can the government write down a law?
=> because it is a task delegated by the people to their representatives

So the people need to have the possibility to do that themselves before they can delegate it.

So if people can not raise taxes, they can not delegate the power to raise taxes and thus a government can not have the power to raise taxes.

I do not say there is an easy solution without taxes, but the concept of taxes is flawed to start with. A law that gives the possibility to government to raise taxes is not worth more then doodling.

P.S.: this assumes you believe in personal freedom/rule of law and not in totalitarianism, totalitarians can raise taxes, they are god to their subjects, they are above law, they own everything and thus can ask you money for its usage.
 
.....I do not say there is an easy solution without taxes, but the concept of taxes is flawed to start with. A law that gives the possibility to government to raise taxes is not worth more then doodling.....

AH, so you're questioning the premise of taxes altogether!

Well, according to Wikipedia, there are twelve countries in the World without Income taxes. Mainly countries in the Middle East that have substantial oil and gas deposits.

While it seems unlikely, perhaps the United States will find huge oil/gas deposits somewhere (maybe Alaska) and we can fund our Government with the proceeds from selling the oil and gas to the rest of the world.

Or we can elect Newt Gingrich so he can strike it rich with his moon-bases! Maybe during his second Administration, he will commence oil extraction from Mars!

Another alternative (if you don't want to pay any Income taxes) is to move to a country that is already income tax free. My first thought was Andorra (due to its location in the Pyrenees) Wikipedia link, but then I found out that they have Universal healthcare (funded by employer and employee contributions), so maybe Andorra should be ruled out, since this might be a strike against them.

Does anyone have another suggestion?

Vince_Fiero
So the people need to have the possibility to do that themselves before they can delegate it.

So if people can not raise taxes, they can not delegate the power to raise taxes and thus a government can not have the power to raise taxes.

Why can't the citizens of a country delegate the power for taxes (or anything else for that matter) to their country's Government?

The Preamble of the US Constitution says: "We the People of the United States, in order to from a more perfect Union....provide for the common defence, promote the general welfare....establish this Constitution..."

Haven't the citizens of the United States, by signing (and agreeing with) the Constitution, given their Government the powers delineated in the Constitution?

Can't we consider the US Constitution a contract between the US Government and its citizens?

An imperfect analogy would be a rental agreement between a lessor and the lessee of an apartment. The landlord supplys a roof, and the lessee pays a tax (rent).

In the case of the US Constitution, the citizens pay their taxes and the Government supplys roads/bridges and a military, and sometimes even eavesdrops in on your telephone conversations (what more could you ask for?).

Respectfully,
GTsail
 
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Why can't the citizens of a country delegate the power for taxes (or anything else for that matter) to their country's Government?

That was the whole point of the post, you can not delegate a power you do not have yourself. You could agree with taxes as a contribution you do, but you can not delegate a power to ask contributions of others, since you do not have any right yourself to ask for contributions of others.

The Preamble of the US Constitution says: "We the People of the United States, in order to from a more perfect Union....provide for the common defence, promote the general welfare....establish this Constitution..."

There is the pain point. Security for example is something that everyone (even not citizens) on the territory profit from.
By not paying taxes you do not take anything away from the others, but you profit from their contribution to security without contributing yourself.

Haven't the citizens of the United States, by signing (and agreeing with) the Constitution, given their Government the powers delineated in the Constitution?

Did you (personally) really sign the constitution? Whooow.

An imperfect analogy would be a rental agreement between a lessor and the lessee of an apartment. The landlord supplys a roof, and the lessee pays a tax (rent).

In the case of the US Constitution, the citizens pay their taxes and the Government supplys roads/bridges and a military, and sometimes even eavesdrops in on your telephone conversations (what more could you ask for?).

It is not so dumb as a comparison.
e.g.: Taxes on property means that the property is not yours, otherwise why would pay rent on it? You pay so the government keeps the rules in place that make it your property.

The issue with taxes for common goods is that you do not pay what you want, you pay for the "General will" (J-J Rousseau). The general will is the sum of the will of individuals, so in the end it is something nobody really wants. This is the basis of totalitarian regimes, even if they are elected, they have the choice over most things since they represent the general will.
 
That was the whole point of the post, you can not delegate a power you do not have yourself. You could agree with taxes as a contribution you do, but you can not delegate a power to ask contributions of others, since you do not have any right yourself to ask for contributions of others.

I guess what I'm saying is that the citizens of the United States have agreed with being taxed by their Government because they want to be citizens of the United States, and they ratify this agreement by remaining citizens of the United States each and every year (ie. by not moving to Andorra).

The citizens of the United States see the benefits of being part of the United States, and therefore agree to fund the US Government's functions by paying taxes for the services that the Government provides (road/bridges/military/laws/courts/etc).

Do you have another method for funding the US Government (other than taxes), or are you proposing a country without any Government?

Respectfully,
GTsail
 
I guess what I'm saying is that the citizens of the United States have agreed with being taxed by their Government because they want to be citizens of the United States, and they ratify this agreement by remaining citizens of the United States each and every year (ie. by not moving to Andorra).

Doesn't work like that. There is no such thing as consent of the governed, and you can't take someone's property just because they don't move away when you do it.

Do you have another method for funding the US Government (other than taxes), or are you proposing a country without any Government?

There are alternative methods, but a sales tax is a much less invasive way to tax than income tax (not that it's not invasive, just significantly less so). I'd like to see the US move to a sales tax and abandon the income tax federally.
 
...There are alternative methods, but a sales tax is a much less invasive way to tax than income tax (not that it's not invasive, just significantly less so). I'd like to see the US move to a sales tax and abandon the income tax federally.

Its still a tax.

My reading of what Vince_Fiero is proposing is that any tax would be inappropriate.

If you were retired and had essentially no income (and were living off of retirement savings that had already been taxed), would you consider a sales/consumption tax more invasive than an income tax?

Respectfully,
GTsail
 
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I'd like to revive this thread to ask a question based on something posed in another thread, rather than spinning that discussion off-topic.

That was pretty good but by "funding" for science and schools I must assume you mean that a more logical populace would support private funding and charitable donations.

I've no particular issue with what's written above. I understand it. I personally feel that funding for education and science are things I don't mind my taxes being spent on, but I also understand why others think this is nuts - I'll paraphrase it as the "give them an inch and they'll take a mile" argument.

I'd also say that I couldn't see it ever working the way Keef suggests in the second part of the statement, even though this is what would happen in an ideal world. With the world the way it is at the moment, funding for education and science would simply dry up, as both sectors are already underfunded to a degree in most places, and removing funding sourced from tax would kill those faculties.

Anyway, all of that is by the by and discussed ad nauseum in other threads. My question is:

Is there anything at all that it's not considered a breach of rights to devote tax revenue to? Or is tax simply fundamentally wrong on all levels, whatever it's being used to fund?
 
I think you shouldn't tax apart from education, and protection. Healthcare, etc. should be private.

-OR-
If you have socialized medicine, you should be able to opt out of it(Keep your share of those taxes), and the government should follow its own Anti-trust laws, and not try to under-cut the private sector.

Taxation is necessary, and I'll try to explain it the way one of my mates who is majoring in politics did.

-Paraphrase-
"Yeah, social programs are bad or whatever. But look at it this way, from the perspective of the leader-
If your people arent educated, and arent healthy, what are you actually leading? A bunch of stupid fools who are nearly dead. And the power elite, who would then rise to power as a result of their private educations, would have noone to lead. You country would be pretty useless. So they, wanting to have some ability to interact with the world, would send their people to school, so they could build an economy of better thinkers, faster workers, etcetera.
But even the rich cant afford to send EVERYONE to school. So they ask them to give up a small amount of funds so that they can attend a school, which the rich(Government) set-up.
The same applies to healthcare.
If everyone lays around sick and broken all of the time, you arent really leading a country. You're leading a bunch of people who can only lay in beds. "

The way he said it was much more eloquent, but you get the point.
By nature, a government has to give its people SOMETHING, otherwise their people are nothing. The only way to swing this, financially, is to get everyone to kick in.

Now the fairness of taxes... I think everyone ought to be taxed the same.

And I hate the 50% of people in this country who dont pay them.
 
When purchasing goods or services. Simple.

That makes more sense, but I was thinking down the line of income tax. Tax on goods or services doesn't pay for education/defense/healthcare/research or any number of other things outside the realms of the companies producing those goods or services.

Not that I'm saying income tax is right, but I'd be intrigued to hear peoples thoughts on where they draw the line as far as tax revenue spending is concerned.
 
Its still a tax.

It's a better tax.

My reading of what Vince_Fiero is proposing is that any tax would be inappropriate.

To a certain extent, I agree. There are other methods of funding governments, but given that the US is going to tax its citizens to fund its enormous government, there are better ways.

If you were retired and had essentially no income (and were living off of retirement savings that had already been taxed), would you consider a sales/consumption tax more invasive than an income tax?

No. Retired people are part of the reason that income tax makes sense. Right now we ask a very narrow group of individuals to fund our entire government. You're supposed to be a kid or make essentially money (and pay essentially no taxes) until what 25? And then you're "supposed" to retire at what? 60? 62? So we're asking the ages 25 and 60 to fund everything.... and people wonder why it's unsustainable.

Taxes should be smoother than that, more seamless, more predictable, more gradual, less interruptive in economics. They should come on slowly and predictably... and they definitely shouldn't feel tailored to your specific situation so that you have to wonder whether your specific situation will require more taxes next year even though it doesn't for anyone else.

I could go on and on about the merits of a sales tax.
 
Define "the same".

A flat rate regardless of income? Or the same percentage, regardless of income? There are problems associated with both, as far as I can tell.

A flat percentage based on annual income. No more than 15%.

I dont see the merit in taxing the money you earn AND the money you spend.
 
A flat percentage based on annual income. No more than 15%.

Where would the deficit be made up then? I'm not advocating a higher rate, but if we were taxed on income at 15% and not taxed on products and services at all, where would the vast difference in the current rates come from? Corporation tax wouldn't really be an option as any corporation that decides it's being taxed too heavily would simply move elsewhere.
 
Where would the deficit be made up then? I'm not advocating a higher rate, but if we were taxed on income at 15% and not taxed on products and services at all, where would the vast difference in the current rates come from? Corporation tax wouldn't really be an option as any corporation that decides it's being taxed too heavily would simply move elsewhere.

Somewhere I read a study which suggested that a 15% tax, in addition to the Tariffs which go quietly unnoticed, would cover the expenses IF everyone paid. But they dont. More than half dont.
 
Here in the US we fund childrens' public health programs with taxes on tabacco products, especially cigarettes.

At the same time the government has had a strong anti-smoking campaign in effect for years now, basically a war against cigarette companies. Because of these programs and others, there has been a steady decline in cigarette sales for quite a long time.

The result is that some of these childrens' health programs are going unfunded because the government is attacking its own source of revenue. Now just try and tell me that the government cares about the wellbeing of children in this country. Then they want to continually raise taxes to keep the revenue up, but raising taxes lowers sales which lowers revenue...I swear some of the stupidest people in the world hold political office in the US. But even the biggest morons are smart enough to work solely for personal gain.

Late reply but I think the reason for this is because smoking still costs more money than it earns. That is, smoking makes society less productive and more expensive due to the medical ailments associated with it.
 
TVC
Late reply but I think the reason for this is because smoking still costs more money than it earns. That is, smoking makes society less productive and more expensive due to the medical ailments associated with it.

The counter-argument for that is that on average, smokers die sooner so may not incur the sort of costs associated with living well into your 90s...
 
TVC
Late reply but I think the reason for this is because smoking still costs more money than it earns. That is, smoking makes society less productive and more expensive due to the medical ailments associated with it.
Not true in the UK, at least. Smokers bring in far more in tax than they cost.

[EDIT] Smoky bacon sauce
http://ash.org.uk/files/documents/ASH_121.pdf

Research commissioned by ASH has shown that the cost to the NHS of treating diseases caused by smoking is approximately £2.7 billion a year. Another study put the estimated cost as high as £5.2 billion. A report by the Policy Exchange in 2010 estimated the total cost to society of smoking to be
£13.74 billion. This includes the £2.7bn cost to the NHS but also the loss in productivity from smoking breaks (£2.9bn) and increased absenteeism
(£2.5bn). Other costs include: cleaning up cigarette butts (£342 million), the cost of fires (£507m), the loss of economic output from the death of smokers
(£4.1bn) and passive smokers (£713m).

The Treasury earned a total of £9.5 billion in revenue from tobacco duties in the financial year 2011-2012 (excluding VAT). Including VAT at an estimated £2.6bn, total tobacco revenue was £12.1bn. The price of a pack of 20 premium brand cigarettes currently costs around £7.45, of which £5.80
(78%) is tax

Note, the largest number includes rather dubious figures such as productivity and cleaning up cigarette butts.
 
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The counter-argument for that is that on average, smokers die sooner so may not incur the sort of costs associated with living well into your 90s...

I can't cite the source(s) because I came across this quite a few years ago, but a non-smoker has on average three major age-related illnesses such as heart attack or stroke, etc, while the average smoker is done in by the first one.

ASH Report
...the loss of economic output from the death of smokers (£4.1bn)....

When they have to include nebulous stuff like that you really have to question their objectivity; clearly they were reaching for things to puff up their position.
 
I can't cite the source(s) because I came across this quite a few years ago, but a non-smoker has on average three major age-related illnesses such as heart attack or stroke, etc, while the average smoker is done in by the first one.

Exactly. Smoke people, smoke!
 
I guess what I'm saying is that the citizens of the United States have agreed with being taxed by their Government because they want to be citizens of the United States, and they ratify this agreement by remaining citizens of the United States each and every year (ie. by not moving to Andorra).

Where I agree with Danoff, this does not change the injustice, and this is what Milton Freedman calls voting with your feet. If other do it better, people will move there and they should be free to do so.

My reading of what Vince_Fiero is proposing is that any tax would be inappropriate.

We come back to the issue of security, where people create security, you can move in the same area and not pay for the cost of that security. You are living off the investment of others.
Where is the highest injustice? You take something that is not yours (tax) or you profit from something (security) others build, but do not contribute? Is it possible to take, without that the others get less? I do not believe so, in going into a secured area, you increase the controls needed, if you do not pay for those controls, you are stealing again from the others.
Conclusion, when you go in an area that offers security it is normal that you pay for that service, otherwise vote with your feet.

Where would the deficit be made up then?

Seems like a very strange question to me, it comes down to: My neighbour takes a lot of loans and can not pay them off sufficiently since the rates went up when he had to renew the loans and he keeps making more losses; how should I solve this?
You should not, your neighbour should go bankrupt, not tax you for his stupidity.
So indeed this deficit question comes down to, the world should go bankrupt or money should devaluate (similar effect on loans, the others do not get he same value back as they put into it).
Not practical, not nice (capitalists will loose out on this!), but is it avoidable?
The mistakes made by government in the past are no excuse for continued injustice.

...If your people arent educated, and arent healthy, what are you actually leading? A bunch of stupid fools who are nearly dead. And the power elite, who would then rise to power as a result of their private educations, would have noone to lead. You country would be pretty useless. So they, wanting to have some ability to interact with the world, would send their people to school, so they could build an economy of better thinkers, faster workers, etcetera.
But even the rich cant afford to send EVERYONE to school. So they ask them to give up a small amount of funds so that they can attend a school, which the rich(Government) set-up.
The same applies to healthcare.
If everyone lays around sick and broken all of the time, you arent really leading a country. You're leading a bunch of people who can only lay in beds. "

The way he said it was much more eloquent, but you get the point.
By nature, a government has to give its people SOMETHING, otherwise their people are nothing. The only way to swing this, financially, is to get everyone to kick in. ...

Where I understand that investment makes you more competitive, so as a country if you invest you become more competitive, which benefits the whole society (more jobs, etc ...); the above goes wrong in the transition from
even the rich cant afford to send EVERYONE to school
to
So they ask them to give up a small amount of funds so that they can attend a school, which the rich(Government) set-up.
there is no difference in the amount of money, there is no difference in the capability to educate EVERYONE. The transfer of the money to the government does not change the ability to realise something.
Society is what gives something, capitalism will say, people will vote by their purchase (Mises) where most development is needed, if education is needed people will invest in it. Government can only impede development by forcing people to spend their money on things they might not want, the majority forces the individual to do what they think is best and kill individual initiative.
It is a matter of belief, do you belief the few elected to government are smarter then all the others combined (socialism, taxing) or do you believe that the actions of all individuals together (the invisible hand, private initiative in spending) is smarter?
 
That's such a poorly written article it's hard to tell anything from it. A 43% tax starting at 100k is much more onerous than a 44% tax starting at 500k unless you make $10 billion dollars. And what counts as a tax? Social security? Capital gains?
 
Overall the UK tax rates aren't so bad, the problem is that we overly penalise the highest earners. That might seem fair but the net effect is that those earners can afford to move somewhere else and so do. That means there are far fewer high-earning taxpayers in the UK than there should be. They go to the countries that give them a break, and that's exactly what we should be doing.

I'm nowhere near THAT bracket so I'm staying put ;)

EDIT: I pay 28% of my wage in IT/NI, that's nowhere near the figure in the previously-linked article! I'm not in the top tax bracket but nor am I in the lowest by some margine.
 
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Danoff's random tax tip number 23:

If you don't qualify to contribute to a Roth IRA but want to anyway, you can contribute to a non-deductible traditional and convert it to a Roth. However, this is not nearly as effective if you have a traditional IRA already in place - such as a 401k rollover. This is something to consider before rolling over your 401k.

That is all.
 

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