[MandoMan]

Originally Posted by Battlebasset

If we would just work to simplify the tax code this would become more difficult, and we would need less IRS (which costs money) to track it down.

I would also be in favor of a national sales tax if it would result in lower income tax rates and simplification. But it wouldn't, and we need look no further than Europe for how that would work.

I wish I could support you on that. Sounds good. But if you look into it, you discover that it falls much more heavily on “hardworking men and women” than on people earning more than a couple million a year. Sales tax only or an income tax with the same percentage for everyone makes the rich smile broadly and applaud. They make so much more than they spend, and so much of it is not classified as income. Meanwhile, those of us who spend most of what we earn would be soaked. The equivalent VAT (Value Added Tax) in the UK is now 20%, plus the other income taxes they pay. Imagine a sales tax only system, and it was, say, 30%. Currently most people have way less than that withheld by the IRS, and lots of low income people get much or most of the withholding refunded. Imagine paying a 30% tax on everything you buy! Instead of 6%, which is bad enough. And of course the state would still need its 6% sales tax.

[Al2014]

Originally Posted by Battlebasset

If we would just work to simplify the tax code this would become more difficult, and we would need less IRS (which costs money) to track it down.

I would also be in favor of a national sales tax if it would result in lower income tax rates and simplification. But it wouldn't, and we need look no further than Europe for how that would work.

I don't think we want to add ways for them to tax us. The rules are made and then the tax lawyers and investment experts create ways to legally get around them.

[maistocars]

What is their average annual collection rate? Not sure if this is good, average, or low or just a puff piece to boost up something?

[Dlpdo]

Originally Posted by manaboutown

Over 60% of US households pay no federal income tax; lots of freeloaders, "What me worry" types.

Increasing Share of U.S. Households Paying No Income Tax

I wonder if any of this magnificent sum was collected from Al Sharpton who last I heard owed $4.5M which would be much, much more now with penalties and interest?

Why do you people think income tax is the only tax worthy of considering that a person pays. Low income people pay a higher percent of their income in taxes than the rich do. There is nothing special about income taxes. People pay many other types of tax.

[Stu from NYC]

Todays Sun had an article about how great the IRS is now doing collecting taxes from a handful of people. Total still a drop in the bucket

Wonder how much of this would have been collected if the IRS was not given additional funds?

[SHIBUMI]

Leave business alone, they drive the economy, strictly personal income tax suggestion, BUT, if small business is the backbone then exempt the first 75,000 in net income or tax them at 10% and not added to personal income.

[bumpa]

Originally Posted by retiredguy123

Progress? So, they collected $38 million, but how much did they spend to collect it? The IRS annual budget is about $14 billion. $38 million is only 0.27 percent of their budget.

A ridiculous comparison. Surely you don't imagine the entire 14 Billion was spent collecting the 38M.

[Haggar]

Originally Posted by Janie123

the “Fair Tax” is a national sales tax on steroids and has been bouncing around congress for about 10 years now. It replaces ALL taxes the federal government takes in and includes a rebate to all house holds up to the poverty level for the tax they pay on good and services. This tax also replaces payroll taxes which anyone that works a legitimate job pays including the employer. Even the federal gas tax goes away with the fair tax. For retirees, all capital gain taxes goes away as well as RMDs. I’ve read a few books on it and can’t find a whole lot of cons and lots of pros… including abolishing the IRS.

This "fair tax" isn't so fair. The wealthy who make a lot of income put most of their income into investments and the bank. Therefore they would only pay tax on what they "spent" and pay no tax on their investments. This is a scheme to help the rich!

As to the gas tax - this is going to be a problem in the future. With the push towards electric vehicles, hybrids and just more fuel efficient vehicles gas consumption is going to go way down and taxes along with it. Toll roads would partially work to alleviate the problem - so roads like I-95 would need to be converted to a toll road.

All roads supported with the gas taxes would have to be converted - not very practical!

And if payroll taxes go away where are the funds going to come from for medicare and social security?

[retiredguy123]

Originally Posted by bumpa

A ridiculous comparison. Surely you don't imagine the entire 14 Billion was spent collecting the 38M.

Not what I said. But, if they spent $100 million to collect $38 million, I don't consider that money well spent. We are only getting one side of the story.

[Haggar]

Originally Posted by CoachKandSportsguy

IRS says it collected $38 million from more than 175 high-income tax delinquents | AP News

not sure we normal retired people have anything to worry about. .

I'm a working CPA. I see fraud all the time.

I've seen a potential client come in with an $81,000 check paid to his LLC and ask how this income could not be reported. (I sent him away).

I've been asked to file for Employee Retention Credit even though their sales went up. They advised a company advertising on the radio they spoke to said they had a way around this.
(If sales went up quarter to quarter you can't file for the ERC).

Many construction, farm and restaurants have employees paid with cash.

A bill passed last year giving the IRS enough money to hire more employees. Most of this money went to hire replacements for vacant positions or positions coming up through retirement.

A portion of this money was to go into hiring revenue agents for audits. It has been proven that audits recover 3 times the amount spent on audit personnel. There was misinformation spread that all of the money was for audit agents. Just not true.

There is an IRS hotline for CPA. Two or three years ago there was a ten to fifteen hold time before I spoke to an agent. Last week I called - it took three calls to get into the queue. I was told there would be a 30-60 hold time. After one hour thirty minutes I got to talk to someone. Was told they could not help me because another department had not processed the payroll taxes returns sent in two months earlier. I should call back in two to three weeks.

The IRS needs more money- not the reduction in funds the republican are calling for.

[Stu from NYC]

Originally Posted by Haggar

This "fair tax" isn't so fair. The wealthy who make a lot of income put most of their income into investments and the bank. Therefore they would only pay tax on what they "spent" and pay no tax on their investments. This is a scheme to help the rich!

As to the gas tax - this is going to be a problem in the future. With the push towards electric vehicles, hybrids and just more fuel efficient vehicles gas consumption is going to go way down and taxes along with it. Toll roads would partially work to alleviate the problem - so roads like I-95 would need to be converted to a toll road.

All roads supported with the gas taxes would have to be converted - not very practical!

And if payroll taxes go away where are the funds going to come from for medicare and social security?

Silly me thought "income" was subject to tax and than you use after tax funds for investments.

[huge-pigeons]

Originally Posted by Rich Iwaszko

Simplify reporting for the wealthy. Create a 5 line tax form for them. Name, SS#, address, occupation, income. Take that income times 33% and thats your tax liability. Billions more will come in and a 6th grader could check it. Its all about too many deductions.
Leave those for the middle class.

Why pick on the wealthy? What is wealthy? I’m tired of paying taxes when there are a lot of deadbeats don’t pay any and use/abuse the system much more than we do.
A 10% flat tax should be implemented across the board. If you are lazy but can work, you get no handouts anymore. If you are disabled and can’t work, then you should get something every month. Even if you make $30k a year, you pay 10%.
All illegals don’t get a dime, no free school or health care, or future social security. They need to work.
Illegals have more benefits than the people paying the taxes.

[Stu from NYC]

Originally Posted by huge-pigeons

Why pick on the wealthy? What is wealthy? I’m tired of paying taxes when there are a lot of deadbeats don’t pay any and use/abuse the system much more than we do.
A 10% flat tax should be implemented across the board. If you are lazy but can work, you get no handouts anymore. If you are disabled and can’t work, then you should get something every month. Even if you make $30k a year, you pay 10%.
All illegals don’t get a dime, no free school or health care, or future social security. They need to work.
Illegals have more benefits than the people paying the taxes.

Run for office will get my vote.

[SHIBUMI]

Wealthy is a gross of 1 million per year..........if you cant live on 500,000 or more a year after taxes, there is something wrong with you.
If you make more than god bless you........you have the ability to donate more to the general good that you are stealing from....

[Stu from NYC]

Originally Posted by Rich Iwaszko

Wealthy is a gross of 1 million per year..........if you cant live on 500,000 or more a year after taxes, there is something wrong with you.
If you make more than god bless you........you have the ability to donate more to the general good that you are stealing from....

If someone makes more than say a million a year they are stealing from the general good? Seriously?