UnThreaded | Threaded | Whole Thread (42) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: MadCapitalist Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8587  
Subject: Re: Dividend Tax Increase Date: 11/17/2012 7:10 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 5
As I recall, in Iraq, the US wanted all oil revenues to be distributed to the people then be taxed by the Gov. That way, everyone had a real stake and could see the cost of the Gov. If they just got a "post-tax" payout they would never know what they are missing. For that same reason, I would like to see all people pay an INCOME tax (at some rate) so they can see their taxes rising as "services" rise. Maybe there would be a little more care about what the gov is spending.

I agree with this completely. I once proposed a *true* flat tax, meaning that there are *no* exemptions, personal deductions, or tax-free income, and *all* income would be subject to one low flat rate. Everyone would have the exact same marginal and effective tax rates. The tax rate would be pretty low because the tax base would be maximized by eliminating exemptions, deductions, and tax-free income.

http://boards.fool.com/ot-the-madcapitalist-tax-reform-act-o...

This wouldn't fly with a lot of people though, so we could subsidize the exact same things as we do now through the tax code, except do it *explicitly* through spending.

For example, the tax code currently subsidizes home ownership through mortgage interest and real estate tax deductions for those who itemize deductions (i.e. mainly taxpayers with higher incomes). We could still subsidize this by forcing citizens to go to a different government department and filing a separate form to collect their goodies. Then the government could send them a check, making the spending completely explicit.

Of course, this wouldn't fly with our politicians, because if it's one thing that they hate, it's making things explicit and transparent.

I was trying to come up with a good name for the new department to distribute the goodies. The one that I came up with was:

Department of Government Goodies that I Didn't Earn but Still Feel that I'm Entitled to Just for Being Alive

It just rolls off the tongue. :-)
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (42) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Motley Fool Income Investor
Are you a dividend-savvy investor? Check out our Income Investor newsletter.
2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Tax Strategies

TMFPMarti-Feeling Good
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement