Ideas for Improving America
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David F Mayer
You are mistaken as a simple counter-example demonstrates.
Tue Nov 20, 2012 1:22pm

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 based on TOTAL income minus TOTAL exemptions, it just does not matter how income producing assets are distributed. Furthermore, that is the ONLY possible way to achieve a tax independent of such finagling. That is because it is the ONLY way that total income and total exemptions remain constant regardless of who earned what.

Think more about it and you will see that I am correct. If you want a formal proof, you will get it.

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
    • You are mistaken as a simple counter-example demonstrates. — David F Mayer, Tue Nov 20 1:22pm
      • 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
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