Ideas for Improving America
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False..... completely false....
Tue Nov 20, 2012 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, Billy pays income tax and can claim one exemption....

It simply does not MATTER whether they are one family with husband, wife and 16yr old son....

Or whether they are three siblings living together.

or whether they are three total strangers living in three separate zipcodes...

David, you are startin down the slippery slope of adding complexity to your proposed tax code...

Every individual pays income tax on income that they make. If you want to add an exemption for basic necessity level income, fine...

But there simply is no NEED to start trying to calcuate in familial relationships.

  • 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
      • 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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