mrcheerful
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Sun Mar-02-08 10:41 PM
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Does anyone else get a head ache trying to explain tax loop holes for the rich |
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is a bad thing? I keep running into the its not illegal to use loop holes excuse. Excuse me its not about legal or illegal, its about fairness. How is it fair taxation when a lawn mowing business {for example} can buy a new mower and get a tax credit for it yet a home owner can't? Or a business can not only put up an aditition, but can get tax credits for building materials and property taxes remain the same. Yet if a home owner does it not only are the tax credits limited on building costs but also the home owners taxes go up. I guess it all comes down to is we were fed a line and no one bothered to see how it effected their lives, then when they did they blamed someone else for the problem. Taxes = everyone pays their share, wink, wink.
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rurallib
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Sun Mar-02-08 10:43 PM
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mrcheerful
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Sun Mar-02-08 10:53 PM
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3. I get mad as hell too, why you think I got the head ache? lol. |
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Now the SO is pissed off because I yelled at her for the other person being a moron, lol. Looks like I got some butt kissing time to do tonight.
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DJ13
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Sun Mar-02-08 10:48 PM
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If you're in the lower classes, but you still have a mortgage, you cant get a tax rebate for your interest.
You have to just pay that interest with no help from the Federal government.
But if you're well off, the government says you shouldnt have to bear that interest expense, so you can get that money back on your taxes.
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MaryCeleste
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Sun Mar-02-08 11:00 PM
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4. Its not "just for the rich" and most of them were well meant |
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I AM NOT defending tax loopholes for the rich, but pointing out that many of them were well meant attempts at social engineering or incentives for certain investments (renewable energy) that have accumulated over time. The repukes do not have an exclusive on that behavior. Lots of them were created when we controlled the House and Senate over the years. Its a massive case of unintended consequences where well intended incentives have been misused by those with the wealth to hire the lawyers and accountants to pervent the intent..
I too have a strong desire for simplification and clean up of the tax structure. The current situation is totally unreasonable and unjust, though as I said, in many cases was created with good intentions. This does not mean I am ready to jump on the Fair Tax scam being pushed today, but I can understand the zeal some have for it.
As for your example, the equipment is a cost of doing business for the landscaper, which is why he can deduct it and the homeowner can not.
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pnwmom
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Mon Mar-03-08 01:06 AM
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5. I'm not excusing tax loop holes for the rich, but the example you gave isn't one. |
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Edited on Mon Mar-03-08 01:08 AM by pnwmom
Any ordinary person (not "rich") who is self employed can deduct legitimate expenses for his business. And this is fair because it is a business expense. If a gardener's customers paid him $20,000 over the year, but he had to SPEND $5,000 just to do the work, why should he have to pay taxes on the full $20,000? Shouldn't he be able to deduct the $5K from his income and only pay taxes on the remaining $15,000?
A self-employed person pays taxes on his income, plus he pays double social security taxes -- both as the employer and as the employee. It isn't some "loophole" that allows him to deduct business expenses. It's common sense, made into law. The problem comes if people abuse the system, by falsely claiming non-business expenses, or in other ways.
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mrcheerful
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Mon Mar-03-08 09:52 PM
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6. I see that point, but I am talking about the way that law has been mis-used by big business. |
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Small businesses that use these tax laws that are following the laws guidelines are not the problem, but I am talking about the businesses that would operate at a loss just for the tax credits. It was like that with some of the family farmers I went to school with, they rented out 80 or 90% of their property to other farmers, yet every year they would buy new farm equipement for tax credits, even though they were no longer in the farming business, they were able to get tax credits because they were listed as a farm business. Hey count your stars that I'm not like this nit wit, thats blaming everything from out sourcing to the national debt on GM workers being paid to much making it hard for GM to make profits, on another forum. Also the health care problem was also because GM got the best health care plans. LOL
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Fri Apr 26th 2024, 01:13 PM
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