Ideas for Improving America
David F Mayer
In order to permit the working poor, of whom there are many,
Mon Nov 12, 2012 9:11am

to subsist.

  • Why allow a personal exemption at all?PureStevil, Mon Nov 12 8:49am
    Just lower the rate and eliminate all deductions and exemptions.
    • is that an individual probably should not be taxed out of the basic necessities... If it takes 15K a year to SURVIVE, one probably shouldn't have to pay taxes on the first 15K one makes... After... more
      • the future of the nation. It costs more money to have kids. Many years ago the average figure that it costs to raise a kid from infant to young adult was about $100K. A nation's future is primarily... more
      • Here we disagree. I see it PER PERSON, not per taxpayer.David F Mayer, Mon Nov 19 10:38pm
        A family of 4 would have 4 personal exemptions, and so forth. Any deviation from this "per person" rule immediately makes possible various dodges to split income, etc. The thing I really like about... more
        • No.PureStevil, Tue Nov 20 11:27am
          Allowing deductions for children removes a portion of the financial responsibility of the decision to have a child. There are plenty of people on earth. If you want to add to that, then you and you... more
          • It cannot work that way.David F Mayer, Tue Nov 20 1:32pm
            This leads to income transference. Daddy puts income producing assets into name of minor, who thereby becomes a taxpayer and creates an exemption. Besides, we need to recognize that kids cost money.... more
            • Why would we allow you to "transfer" income?Sprout, Tue Nov 20 4:21pm
              Your income is your income, and you pay taxes on ALL of it... If you LATER give some of that money to your child, that is fine. Then the child has income and must pay income taxes on ALL he gets...
              • Hoist on my own petard. I yield.David F Mayer, Tue Nov 20 9:21pm
                You are correct. This would amount to a deduction. Opening the door for JUST ONE deduction, opens it for thousands. Thanks for pointing out my error. David F Mayer
        • Why?Sprout, Tue Nov 20 10:42am
          Each tax filer pays full income tax on their own income minus THEIR OWN single exemption. Period, no way to cheat there.... Everyone who makes INCOME must file taxes and gets their own exemption. No... more
          • This is what happens. In order to add exemptions, the ownership of investment is distributed. Husband transfers stock to minor. Minor becomes a taxpayer and an exemption has been created. With tax... more
            • You miss my point....Sprout, Tue Nov 20 4:16pm
              If the father recieves INCOME, he pays taxes on it.... if he then PAYS his child with some of that POST-TAX income, that is then INCOME for the child and the child must file... If the family wants to ... more
    • In order to permit the working poor, of whom there are many, — David F Mayer, Mon Nov 12 9:11am
      • That removes, or greatly diminishes, the consequences of the decision to procreate. If there must be an deduction it should just be 1 exemption for each taxpayer. It should not factor in a number of... more
        • One exemption per taxpayer justDavid F Mayer, Mon Nov 12 3:45pm
          forces everybody to file separately. The ONLY form of income taxation that averts circumvention by lumping or splitting of taxpayers is the one I mentioned: One uniform rate with one exemption per... more
          • Perhaps a better way to describe it would beSprout, Mon Nov 19 5:07pm
            one exemptions PER FILER... Per TAXPAYER... A child isn't a taxpayer and isn't a filer, and therefore shouldn't be calcuated into the equation.
            • I don't see it that way. Per Person exemptionDavid F Mayer, Mon Nov 19 10:41pm
              is the ONLY way to make tax liability independent of how income is distributed. This is not an opinion, but a theorem, which I will prove here if you want me to do so. I invite you to sign my... more
              • False..... completely false....Sprout, Tue Nov 20 10:46am
                It is really very simple. If Bob makes income Bob pays income tax, and can claim one exemption... If Susan makes income, Susan pays income tax and can claim one exemption. If Billy makes income,... more
                • Wrong.David F Mayer, Tue Nov 20 1:28pm
                  The point is that, by transferring income producing assets to some minor, a new taxpayer and corresponding new personal exemption is created. Hence tax liability is reduced. The ONLY way that tax can ... more
                  • If one indivdual "transfers" wealth to another indivdiual that is INCOME for the other indivdual, who must pay taxes on it... AFTER the first indiviual payed taxes on it in the FIRST PLACE... Dad... more
                    • Not so. Transfers occur all the timeDavid F Mayer, Tue Nov 20 5:29pm
                      in the same family, to a trust fund, etc, etc. I have never heard of them being called income, although that would be in the spirit of my flat rate tax. This is an interesting matter that requires... more
                      • Every transaction is a "transfer"....Sprout, Sun Dec 9 9:23am
                        Folks just USE that word to AVOID it sounding like they are paying... If I "transfer" twenty dollars to you, you have been paid twenty dollars. It doen'st matter WHY. Now, it is possible that you... more
                        • True, but this is constantly used to evade taxes.David F Mayer, Sun Dec 9 1:40pm
                          The new tax code must consider ALL transfers as income, which is certainly NOT true at present. David F Mayer
                          • scratch with none of the existing loopholes... If someone gives you money it is income... I think some extremely limited exceptions might be in order such as a person under the age of 16 can recieve... more
                            • What happens is that Mr X signs a contract with Y.David F Mayer, Wed Dec 12 1:44pm
                              Y is required to pay, NOT Mr X, but Mr X's wife, son, daughter, dog, etc. Sure, it is taxable income, but such subterfuges permit the income and consequent tax to be spread to several individuals. Mr ... more
                              • And when the audit comes in....Sprout, Thu Dec 13 11:33am
                                And because it WILL when an 8 yr old claims 20K in income without being legally able to work, it will be amply clear that that money is actually compensation for Mr. X's job, and Mr X will then be... more
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