originally posted by: DAVID64
a reply to: SBMcG
Well, I am definitely not one of the wealth grabbers, but we do need to pay for roads, bridges, water lines, gas lines, military and none of those
things are free. No one ever really thinks of that. Without taxes, all that would quickly start to fall apart. We enjoy living in a huge
country. Most of out states are bigger than many countries in Europe and it takes money to pay for the upkeep.
Personally, I think anyone making less than 25k, should pay nothing. It's hard enough to live on that and they claim 14k of that is taxable income.
No one should be paying over 25%, unless you make over a certain amount per year. Of course, if they lower federal taxes, they'll find a way to get it
Uncle Sam always finds a way to dig in your wallet.
Don't get me wrong, I have no problem at all with paying taxes. In fact, because of my chosen profession of the last 25 years or so (land
development), I can't think of any business or line of work that is more heavily taxed. Everything I touch is taxed.
Also, I am totally onboard with President's Trump's proposal to invest $1 trillion in our infrastructure (roads, bridges, etc..) -- it's long overdue.
But his plan calls for private financing of most of that, which IMHO, is the way it should be done. There are trillions in languishing capital out
there right now -- more than at any time in our history. Let's put that to work!
My issue with the wealth re-distribution crowd out there (present company excepted) is that they are totally clueless as to how business really works.
Many small businesses require a significant level of accumulated "wealth" (working capital) to operate. In my case, my LLC has to maintain a certain
net worth, as do I individually, to get favorable financing terms from banks. In my line of work, 25 basis points (0.25%) difference on a
construction loan can mean the difference between a decent profit (15% is always my target -- most of the time it's less than that) and a loss.
Right now, at significant expense for legal and accounting help, I can defer and reinvest profits generated by my LLC to avoid a truly catastrophic
tax liability, and I pay myself a fairly modest amount as a salary that is basically just what I need to live on to avoid as much personal income tax
as I can.
The bottom line for me is that if my tax rates went up by much at this point, especially if that increase was specific to some additional leftist
entitlement program like universal healthcare, I would quit. I mean that. I'm too young to retire and enjoy what I do, but I would sell all business
assets, take the one-time tax hit, live off passive investments, and do something else -- maybe even nothing. I'm sure my girlfriend would just love
that last thing (not...).
My personal feeling is that everyone over the age of 18 who receives earned income should pay some tax.
Right now, the bottom 60% pays almost nothing (2 - 4% depending on how you calculate it) and the top 20% (most of whom are small business owners like
me) pays about 85%.
Even if someone only makes $10,000 in a year, they should be able to pay a real rate (after personal exemption and deductions) of 1% in taxes. That's
about $8 a month.
$20,000 a year? How about 2% -- about $34 a month. $40,000, 3%, $100 a month. Leave the top 20% pretty much where it is...
My feeling is that no one should pay more than a net 33% of their personal income or net 20% of business/corporate tax. Again, everyone should pay
Federal Income Tax.
I appreciate your honesty about fixing numbers to what you feel would be fair tax rates. It looks like you'd be more lenient than this right winger
would be, heh heh...
edit on 28-4-2017 by SBMcG because: Correction