COME ON BOYS AND GIRLS, TAXATION HAS AN EXTREMELY LONG-ESTABLISHED HISTORY!

(WWW.WORLDWIDE-TAX.COM, New York Times, Frazer Chronicle)

 

Taxes have been around for centuries, they are why some people change their residence, and even country. There always seems to be a question about a government’s taxation program, wars have been waged, tea has been thrown into oceans, there’s been a sugar act, a stamp act, and a tea party, all either in response to a tax, or a tax levy.

 

People for hundreds of years have fussed, fought and finagled seeking ways to get around paying taxes. There have been thousands of books written about either the right or wrong way regarding the tax questions, and either why taxes are a necessity, or an abuse of power by a government.

 

Governments have passed import and export taxes, corporate tax, income taxes on us all, a negative income tax, Social Security Tax, property tax, inheritance tax, expatriation tax, transfer tax, wealth tax, taxes on goods and services, value added tax, sales and excise taxes, pigovian tax, all created to generate either revenue for specific services, or to address problems that are caused by either the use or to a market activity that is generating negative externalities.

 

I’m not sure that I understand these neoconservatives that want to cut the tax rate, and eliminate government. Oh sure I realize that of any organization that you might want to examine with regards to efficient operation wouldn’t include our Federal Government, pretty much because many officials are out of control and have lost sight of why they are in their current positions.

 

For some jack-ass like Grover Norquist to develop some sort of tax initiative where elected officials sign a pledge not to raise taxes, to me is really stupid. If they raise taxes, or are part of establishing a higher tax rate, do they lose their key to the executive rest-room because they broke their pledge?

 

People that want to down size government seem to never have an answer to what we will do without whatever program or department is cut; it is the fatal flaw in the argument of reducing taxes and government.

 

ARE WE PAYING TO MUCH RIGHT NOW

Is the United States paying too much of a percentage of their earnings, where do we rate on the world statistical scale regarding our corporate and their individual rates? I can tell you this, the United States is listed, (corporate wise) on the high side at between 15-35%, but is one of only a handful of countries that operate under a percentage variable rate, there are only 6 other countries in the world who operate under this type of system.

 

Denmark, 38-65%, Spain, 24.75-52%, Austria, 21-50%, United Kingdom, 0-45%, Italy, 23-43% all pay way more than the United States currently pays, (15-35%) for corporate taxes, yet the U.S. corporate structure hollers the loudest.

 

I personally think that the U.S. tax structure, for business as well as individual is relatively fair if you carefully examine what other countries tax their citizenry. I’ve heard all the arguments regarding tax reform, tax breaks, and how we need to shift the tax burden from the poor to the rich, and although I think that the rich should pay a fairer share of taxes, I think most individual taxpayers across the board do pay a decent amount of taxes.

 

I do not buy the argument that the rich and shameless would create more jobs if their taxes were lowered, or actually eliminated as some wish for. Corporate American does not survive by creating more jobs in the job market, corporate America survives by lowering their operational costs whenever possible, it’s their holy grail!

 

Taxing citizens has a long and established history, the ancient Egyptians appointed Tax Masters who increased the burden on the (children of Israel-slaves under Egyptian domination). As a general rule, tax is the source that is best exploited by the government. Taxes are imposed on individuals and companies to finance services that the state obligated to provide and to meet its goals, or at least it was the general feeling of the ancients in Egypt.

 

Tax is divided into two main categories, progressive and regressive, progressive tax is graduated and its rates vary according to the taxpayer’s income. Regressive tax is a tax at a fixed rate irrespective of the taxpayer’s income.

 

TAX RATES

This is the crux of the problem, or the battle ground of the question of tax-paying, and tax reform, and it’s been going on for years. With little exception the wealthy feel that they are paying too much, and the middle class on down figure that the top one or two percent should pay more.

 

A tax is imposed on individual income by the Federal Government, most states and many local governments. The tax is determined by applying a tax rate which may increase as income increases, and this were the battleground begins. Gray areas abound with regards to partnerships, are they taxable, do individual taxes apply, what percentage of taxes are in order, do off shore accounts considered, and on and on.

 

Until there is a drastic change in the thinking on Capitol Hill, tax rates and laws will favor the extremely rich, and the corporations that go along with them!  It seems that all of us would have wised up by this point, and come to some sort of mutual understanding about tax rates, and their collections…..BUT, not yet.

 

A flat tax would make things really, really simple, but don’t expect anything like that any time soon, legislators have loaded up on state and federal statute books with all manner of curious taxes, surtaxes, credits, exemptions, deductions, depletions, allowances and the occasional GOTCHAS.

 

AREN’T YOU GLAD YOU DON’T PAY THESE STATE TAXES

Arkansas, body piercing tax, 6%

California, deals for Ottoman Empire victims, (1915-1923), a tax exemption

Hawaii, grow a tree…..get a $3,000 tax deduction

Maryland, oyster break, aquaculture float credit, tax credit for oyster harvesting

Minnesota, toke tax, before lighting up pick up a tax stamp…..$3.50 per gram

New York, haunted house tax, covers Halloween show with music, surcharge if ticket price exceeds .10

Seattle, death tax, if you die within city limits, you owe $50

 

 

 

 

 

 

AND THE TAX DEDUCTIONS ARE

Body oil, body builders who use oil to highlight muscles

Pet food, cats protect business from rats and vermin

Swimming pool, deductable if swimming is prescribed by doctor

Babysitting fee, deductable if you volunteer for charity work

Free beer, the cost of beer, given to customers as a business promotion…..a deduction

 

NO YOU CAN’T DEDUCT THESE

Racehorses, you can’t declare a racehorse as a business deduction because you take a client to the racetrack

Therapeutic sex, you can’t declare sex with a prostitute and pornography as a medical expense even with a doctor’s prescription

 

Well there you have it, the serious and the not so serious; I’ve found it’s always better to somehow add a bit of comedy into the mix whenever possible.

 

HAVE A NICE DAY!