Quote:
Originally Posted by Haggar
Here's the reality on rich people's "itemized deductions".
Itemized deductions for the most are taxes, mortgage interest, medical and charity.
Most "rich" people have paid off their mortgage - so no interest.
Sales & real estate taxes are capped at $10,000.
Medical expenses are reduced by 7.5% of income so usually no deduction there.
Which leaves charity - some "rich" don't give charity - the result is they use the standard deduction.
So if charity really is the only mechanism which pushes taxpayers into itemized deductions and you take away that - how will that effect charitable giving? Many good minded will not change their habits but the others may stop giving. Do we want that?
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Charity’s not the big taxes deductions for filthy rich you can only give so much. it’s foundation’s. IMO That way they can control money and pay staff outrageous salary and probably get kick backs. Just like most charities 90% goes to maintaining the staff.
IMO they should be flat tax with NO deductions. I don’t care how many kids people have, that was their choice. I don’t care how many foundations have. You make this much you get taxes this much.
The only people that get really screwed at people that win big money. The federal government takes 37% right off top then you have file at end of year and pay more. No 1% ever pays 37% why the have army of lawyers to pay less than there secretary’s in taxes. Not my words the tax cheat words.
Tax laws are made up for rich by LAWYERS so they don’t have to pay their fair share by using hundreds of pages deductions tax rules. Middle class gets taxes the most cause that’s where majority fall in. But that will change in not so distant future. IMO there will only filthy rich and poor just like 3rd world.