My take on taxes? I don’t like them, but who does? But then how would we pay for everything provided by government without them? It costs money to have the things we take for granted every day.
However, I would like to see our tax rates changed significantly. I think that when you work for a living you should be allowed to keep almost all of that money and begin to build your fortune at the lowest possible tax rate –
Any of us should be able to pull ourselves up by our bootstraps and gain wealth. It’s a great way to help us all enjoy the American dream; as opposed to our government keeping us down by oppressively and aggressively grabbing at us for that which we work so hard to earn.
Even with inflation, in the long run greater wealth benefits the economy and our government significantly more. I discussed in a previous article on one way with which inflation might be dealt when I discussed a “forever” currency bill with its buying power tied to a basket of goods.
In this discussion, once you do succeed and have acquired money, your labor income tax rate still continues to remain at very low rates, but when your money earns money, those earnings (not the money that you invested but the earnings : interest, dividends and growth on that money) might be subject to increasingly higher rates as those earnings pass thresholds. [newsletter_lock]
What might that amount be? How about something equal to our federal estate tax exemption – $5.45 million dollars per individual?
So, to clarify, the earnings on your exempted amount are taxed at a rate no higher than your earned income. The EARNINGS on any amount above that begins to pay taxes on those additional earnings at increasingly higher rates.
While I understand the desire to make more and more and more, at some point we have to call it greed. The point is, if you have already made it, let’s not try to slam the door closed behind you like Bill Gates, or Warren Buffet have so self-servingly done– both proposed tax increases but not until AFTER they earned their fortunes – Ahh, talking out of different sides of their mouths now.
While this discussion is certainly not the end all, it hopefully might be the beginning of further discussions about changing our tax code. I have not done an analysis of the projected effects of these changes, although I did use data taken from http://www.usdebtclock.org/ to reason my way through the problem. Others far more qualified certainly could, altering what I have proposed to bring it in line with government needs.
So what are your thoughts on your taxes? Would you like to see some changes? What might those be?