Category Archives: U.S. Tax Code
TACKS DON’T HAVE TO HURT
If applied properly, tacks won’t hurt…..much.
Herman Cain may have been on to something with the flat tax. As for the income tax, it could be applied evenly, without it becoming a class warfare issue.
Nobody pays tax on the first $15,000/yr. of income. Nobody!
Example: Two incomes, and one child in a household. Income tax is deducted from each of the two individual paychecks after the first $15,000 of new income on each of their checks. This provides for living expenses including mortgage payments, and rent on an equal basis. This also accounts for basic living expenses.
The only pre-tax expenses would be medical, and retirement. Medical insurance, and 401k expenses deducted from paychecks would be deducted from the initial taxable income before $15,000/yr. amount is levied.
All dependents under the age of 25 would be a deductible expense at $5000. Most dependents living at home in to their 20s are usually college students expected to reach their educational expectations by, the age of 25. Dependents over that age would be considered because of a disability, and/or achieving a senior age, not receiving any income beyond a minimum taxable rate.
Let’s play with this a little bit with some arbitrary figures. A $25,000/yr. paycheck to one person in the household, the other with $18,000/yr. One person must pay tax on $10k, the other on $3k. The dependent allowance would be deducted from the greater income, leaving $5k taxable income. Total taxable income for the household is: $8k. The federal tax paid is deducted from State taxable income, and states would follow the same basic model.
Capital gains tax, eliminated. No more capital losses, either. You are only taxed on actual money received, regardless of the source. For tax purposes, you own responsibility for your investments in that context. You lose, no deduction. You gain, no tax just on the idea you’ve gained something that is not spendable.
As you can tell, this is more of a premise, and I haven’t thought this out completely but, I’m looking for that time, and place where 100% of us in the United States are treated fairly with, a single set of rules.
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NEVER ENDING DIVIDENDING DIRECTING
I have put a never ending dividend direction on my 401k but, concerned because Washington wants to tax me once as dividends are received to my account for reinvestment. Then, they want a second go at them when I actually retire, as I literally receive the money.
Unbelievable! If I’m getting this right, they want to tax me on something I don’t have as income then, they want to tax me again when, I literally get the income. Isn’t that rich……..for somebody?
The markets had a decent day, yesterday but, a couple of my limit buys were exercised on reversals that occur for many reasons or, no reason at all even when, the market is doing well. Looks like bulls in the majority at today’s open…….
Earlier this morning, it appeared the bears had a stronghold in the pre-markets but, as CNBC.com reports, China made a sweeping financial move, and the pre-markets reversed accordingly.





