robnplunder
Thinks s/he gets paid by the post
Any opinions on what should be your choice of US income tax system?
....Doesn't matter how the table is built if I can magically disappear much of my taxable income through all the nifty carve-outs in the tax code.
An additional +1+1
Didn't vote in the poll as "carve outs" make specific method of taxation rather meaningless.
An additional +1
I've paid tax in 3 jurisdictions; the US, the UK, and an EU country. I prefer the UK system (I can give a broad brush if anyone is really interested).
IMHO, the US system is 'deduction/exclusion/exemption based; the UK is income based. In the UK, there are a very few carve outs, but no where near what occurs in the US.
Instead of a number of +1 comments, it might be interesting to hear from others who have paid into other systems and their opinions as to how those systems stack up against the US system. If you've had the opportunity to pay under an alternative system then commenting on the US system may offer more than just speculating on unknowns.
I'd be happy with a much simplified but still progressive system.
Once the records are in order, UK tax return takes about 30 mins., if one is required (see below)....About an hour or so to prepare, 2 sheets, limited deductions, straightforward calculations.
UK has 4 bands, 0%, 20%, 40%, and 45%. There's also VAT at 20% (national sales tax) and the amount can go up or down depending on the governments need for revenue. Since tax is deducted at source, the majority of taxpayers are not even required to file a return.Overall rate lower but flatter.
Tax is very rarely discussed in everyday conversation. People sometimes complain about the amount, but seldom about filing. They do complain about those who are not declaring income they should. For the record, I pay considerably more tax on my income than I would in the US, but I still prefer the UK system as it has the appearance of being fairer.Folks bitched as much there as here and cheated much more, so I don't think there is much relationship between time spent, complexity, fairness and overall satisfaction, and it certainly doesn't lead to less complaining.
The French system is similar to the UK system, but tax forms are slightly more difficult. You only pay tax in the year after you earn the income, as only a set amount is withheld from pay during the year (or that's how it used to be).I think French soccer players went on a strike recently b/c they don't believe in paying 75% of their income to government. I believe US used to have 70+% tax bracket some years back. Without tax loop holes, paying 75% of your income to government seems like a highway robbery. Does anyone know how French system works for those who make millions? Do they really pay close to 75% tax?
too political for me
Surprising to see option 4 hanging in there so far. I've always thought the current US tax system is discriminatory against higher income bracket folks. Why should they be penalized by higher tax rate for making more money? In effect, they are paying (much) more to get into public museums, National Parks, etc..
Good question. Political question too. You could also ask if it is fair that high income earners make more money than low income earners. I'm not sure the higher income is always fully earned by the recipient. What I mean by that is that high income earners (for example me) are often born into families that value education, in places where there is good infrastructure and there are good job opportunities. Those are advantages that they have from day-1 that they didn't really earn. So to what extent do I deserve a $200k salary? Have I worked harder than the guy who picks fruit and vegetables in the field year-round? It is probably just as fair that I earn that salary as that I pay an effective 25% income tax compared to the farm laborer's effective 7% tax.Surprising to see option 4 hanging in there so far. I've always thought the current US tax system is discriminatory against higher income bracket folks. Why should they be penalized by higher tax rate for making more money?
Good question. Political question too. You could also ask if it is fair that high income earners make more money than low income earners. I'm not sure the higher income is always fully earned by the recipient. What I mean by that is that high income earners (for example me) are often born into families that value education, in places where there is good infrastructure and there are good job opportunities. Those are advantages that they have from day-1 that they didn't really earn. So to what extent do I deserve a $200k salary? Have I worked harder than the guy who picks fruit and vegetables in the field year-round? It is probably just as fair that I earn that salary as that I pay an effective 25% income tax compared to the farm laborer's effective 7% tax.
Or maybe not. Like I say, yours is a good question that doesn't have a simple, absolute answer.
I'm not a USA person but I know a bit about fiscal policy. Ideally, a government should tax what is undesirable and subsidize what is desirable. The problem starts when you and I think opposite things are desirable and vice versa. Good luck USAmericans. Both of our countries are getting to the point of being ungovernable.