Quote:
Originally Posted by Isaac Zachary
I'm no lawyer, and I truely hope that the tax credit is no longer limited to one's own owed taxes. But the term "the credit which would be allowed to such taxpayer" sounds to me like the credit that "would be allowed" if that taxpayer didn't choose to have it applied to the point-of-sale. In other words, if the tax payer "would be allowed" only $500 of that tax credit because at the end of the year he only owes $500 in taxes, then it sounds to me like that's the amount that "shall be allowed to the eligible
entity."
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Quote:
Originally Posted by JSH
I'm generally in agreement. Using the tax code to punish or reward people for doing things is stupid and overly complicated. However, we have been doing it that way for decades and I don't see it changing.
Personally I'd like to see simple graduated tax brackets without deductions and with all income treated the same. Taxes should also be paid based on individual liability not by family unit. Do that and tax prep wouldn't be required. The funny thing is most wealthy countries do it this way and the government does your taxes and send the bill - it isn't up to the individual to calculate their tax bill with the threat of huge fines or jail if they do it wrong. The idea of the government calculating taxes comes up periodically and then is tabled do to strong opposition from the tax prep and accounting lobbies telling congress how many people would lose their jobs if paying taxes was easy.
If the government wants to give people money to do things that can be done as a point of sale rebate - no different than when a company provides a discount.
Part of the problem is our puritanical desire to decide who "deserves" a certain credit and who doesn't. Means testing is pretty much overwhelmingly found to cost more than a simple level system but the public HATES the idea of someone "undeserving" getting a dollar from the feds.
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Sorta along the same line of reasoning that I might be convinced a UBI is a good idea. Practically no overhead because there's no "cheating" the benefit. If you're an adult person who is living, you get it.
I slightly lean towards a federal sales tax, but I could be convinced income tax is the better methodology.