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Author Topic: Who Pays Taxes in America?  (Read 18253 times)
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« Reply #90 on: February 04, 2009, 09:55:55 AM »

Ark, I just wanted to point out that a ROTH is not tax free. Taxes are already paid on that income before it's invested. So it's the opposite of a tax deferred investment like a 401K. But it's not tax free. Democrats wouldn't hear of not getting a piece of our earnings.
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« Reply #91 on: February 04, 2009, 10:44:03 AM »

Ark, I just wanted to point out that a ROTH is not tax free. Taxes are already paid on that income before it's invested. So it's the opposite of a tax deferred investment like a 401K. But it's not tax free. Democrats wouldn't hear of not getting a piece of our earnings.

Roth holdings are not taxed at distribution, therefore the capital gains tax rate is irrelevant to funds held within a Roth. Funds held in tax deferred accounts are taxed as ordinary income when distributed and again capital gains tax is irrelevant.

My point which apparently caused confusion, was that the capital gains tax cut was touted as helping X number of people who hold stock, but supporters counted among those to be helped, people holding stock in each form of account. They received zero benefit from the cut because of how gains in each are treated.

I certainly didn't mean to imply anything beyond pointing out the lies told in the political realm to get ones way.
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« Reply #91 on: February 04, 2009, 10:44:03 AM »

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« Reply #92 on: February 17, 2009, 09:17:07 AM »

If you have not read the fair tax book, it's essential.  We need to get rid of the IRS.  Fair seems so far from the thinking of our politicians.  They don't want fair, they want to punish the productive.
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« Reply #93 on: February 17, 2009, 11:40:27 AM »

If you have not read the fair tax book, it's essential.  We need to get rid of the IRS.  Fair seems so far from the thinking of our politicians.  They don't want fair, they want to punish the productive.

I don't think so.

What they want is to be fair, but then monkey with it in order to be more fair to those with more clout. We can't have a system where all are treated equal because that means the political contributions dry up if there aren't any favors to dole out.

Want to fix the country? Now is the time to do it because any tax code change will cause massive unintended consequences, might as well rip the band-aid off now.

#1. Constitutional amendment requiring all items in a bill be germane to the bill. No riders about taxes in the military appropriation. No museums or highways in a grant program for law enforcement. Make each proposal stand or fall on its own merit. Right now a congressman won't vote against a Chuck Berry museum because it is added to the Farm Bill.

#2. Value added tax, with a sliding scale rebate based on income.
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« Reply #93 on: February 17, 2009, 11:40:27 AM »

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« Reply #94 on: February 17, 2009, 12:36:35 PM »

If you have not read the fair tax book, it's essential.  We need to get rid of the IRS.  Fair seems so far from the thinking of our politicians.  They don't want fair, they want to punish the productive.

I don't think so.

What they want is to be fair, but then monkey with it in order to be more fair to those with more clout. We can't have a system where all are treated equal because that means the political contributions dry up if there aren't any favors to dole out.

Want to fix the country? Now is the time to do it because any tax code change will cause massive unintended consequences, might as well rip the band-aid off now.

#1. Constitutional amendment requiring all items in a bill be germane to the bill. No riders about taxes in the military appropriation. No museums or highways in a grant program for law enforcement. Make each proposal stand or fall on its own merit. Right now a congressman won't vote against a Chuck Berry museum because it is added to the Farm Bill.

#2. Value added tax, with a sliding scale rebate based on income.

Ark have you read the fair tax book? 
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« Reply #95 on: February 17, 2009, 01:40:06 PM »


Roth holdings are not taxed at distribution, therefore the capital gains tax rate is irrelevant to funds held within a Roth.

That is a false statement.  Capital gains rates do impact the demand for stocks in general, therefore, the capital gains tax rate does impact the returns one would see from a Roth account invested in the stock market even though the distribution from a Roth are free of tax.

Quote
Funds held in tax deferred accounts are taxed as ordinary income when distributed and again capital gains tax is irrelevant.

A false statement, as explained above.

Quote
My point which apparently caused confusion, was that the capital gains tax cut was touted as helping X number of people who hold stock, but supporters counted among those to be helped, people holding stock in each form of account. They received zero benefit from the cut because of how gains in each are treated.

A false and misleading statement, as explained above.

Quote
I certainly didn't mean to imply anything beyond pointing out the lies told in the political realm to get ones way.

Indeed.
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« Reply #95 on: February 17, 2009, 01:40:06 PM »

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« Reply #96 on: February 17, 2009, 02:40:06 PM »

Hang on, while the capital gains rate can have an impact on demand to invest in stock it is helpful to remember that pre-crash depending on who you believe 40% to 50% of stock was held in accounts not subject to capital gains taxation. Those who benefited from the capital gains tax cut (which I don't have a problem with, I have problem with the lie) gained far more from the creation of tax sheltered accounts bringing more money to the table than the capital gains cuts benefited those with the tax sheltered accounts.

The individual investor is far more likely to invest chasing the market while the 401k, 403b, and Roth flavor investors were plugging money into the market every week from payroll contributions (and matches) creating a more stable market and creating weekly demand for stock purchases.

While the capital gains tax rate would have some degree of influence on how willing the 50% to 60% invested that influence pales in comparison to the influence of the fundamentals (profitability, dividends, future revenue projections, balance sheet, etc).

The benefit of the increased demand through the capital gains cut was the trickliest of trickle down.

I suspect with the current fundamentals in the pot, we could slice the capital gains tax rate to say 5% and find only marginal benefit to the stock market.



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« Reply #97 on: February 17, 2009, 04:34:09 PM »

Ark have you read the fair tax book?
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« Reply #98 on: February 18, 2009, 06:30:43 AM »

Hang on, while the capital gains rate can have an impact on demand to invest in stock it is helpful to remember that pre-crash depending on who you believe 40% to 50% of stock was held in accounts not subject to capital gains taxation. Those who benefited from the capital gains tax cut (which I don't have a problem with, I have problem with the lie) gained far more from the creation of tax sheltered accounts bringing more money to the table than the capital gains cuts benefited those with the tax sheltered accounts.

You said
Quote
I saw similar fraudulent numbers during the capital gains tax debates. Numbers were being thrown around about how many people own stock. Left out of the equation was how much was in retirement and deferred comp accounts and not subject to capital gains because the gains were either tax free (Roth) or taxed as ordinary income (other accounts).

There is no lying going on.  Capital gains rates on any part of the market do influence the return on the entire market.


Quote
I suspect with the current fundamentals in the pot, we could slice the capital gains tax rate to say 5% and find only marginal benefit to the stock market.

Even a marginal benefit would greatly appreciated by everyone.  However, it could possibly have a greater benefit if the market saw that the current administration changed from its present course and instead adopted an economic policy of doing all it could to make the US a great country to invest in instead of worse.
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taller, better looking and smarter . . .

They turned me loose from the nervous hospital.  Said I was well.  Mmm hmm.

Suffering for your beliefs is called faithfulness, making others suffer for your beliefs is called being a jerk.

His cross, like the ark in the wilderness, is the center around which his people are to encamp; so that they cannot separate into factions, or withdraw from each other, without retiring at the same time from the presence of the cross.
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« Reply #99 on: March 24, 2009, 10:18:32 PM »

Ark never really answered if he had read the fairtax book, it's a must read.
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« Reply #99 on: March 24, 2009, 10:18:32 PM »

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« Reply #100 on: April 02, 2009, 01:03:18 PM »

It seems that every time we turn on the TV this last couple of months, another Democrat is admitting to owing back taxes. I guess it's just another clear indication of the Republican/Democrat philosophical divide. Republicans don't want to pay any NEW taxes and Democrats don't want to pay and OLD ones. :)
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« Reply #101 on: April 02, 2009, 01:43:51 PM »

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taller, better looking and smarter . . .

They turned me loose from the nervous hospital.  Said I was well.  Mmm hmm.

Suffering for your beliefs is called faithfulness, making others suffer for your beliefs is called being a jerk.

His cross, like the ark in the wilderness, is the center around which his people are to encamp; so that they cannot separate into factions, or withdraw from each other, without retiring at the same time from the presence of the cross.
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« Reply #102 on: April 07, 2009, 01:27:04 PM »

I do.  Fortunately I have some perks from being in the ministry that lessen my tax burden.  (These perks would disappear with the so-called fair tax).

i have a proposal.
if you dont pay taxes you get no vote.
i think when the US started you had to be a property owner to vote.
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« Reply #102 on: April 07, 2009, 01:27:04 PM »

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« Reply #103 on: April 07, 2009, 01:33:08 PM »

I do.  Fortunately I have some perks from being in the ministry that lessen my tax burden.  (These perks would disappear with the so-called fair tax).
i think when the US started you had to be a property owner to vote.

I think it should still be that way.  Bueno!
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larry2
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« Reply #104 on: April 09, 2009, 08:09:16 PM »

I have just gone through a few replies here and marvel at some of them. There is a popular catch phrase prevalent today that asks "What would Jesus do?" Asking myself this question, I wonder if Jesus complained in Luke Chapter 20 as He paid taxes to Caesar of a nation so much worse than America. "Render unto Caesar the things which are Caesar's, and to God the things which are God's." And we are to follow Who?

In Jesus' name - larry2
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