Dealing with large long term stock gains

[TexasHusker]

There isn't going to ever be an appetite for a "fair" tax code in this country. But if I was king for a day, everyone would pay a national sales tax on every good and service and be done with it. There would be no IRS, no tax forms, no tax attorneys or accountants. The more you buy, the more you pay. If you want to spend $10 million a year, you'll owe sales tax on every penny. If you want to live on $30,000 a year, you'll be rewarded with very little tax.

Want to buy a $10 million yacht? There's a 10 percent tax on it.

Want to buy a $99 round trip ticket to your local vacation hotspot for the weekend? There's a 10 percent tax on your ticket.

We have built an entire system of smoke and mirrors, much of it intended to get folks to behave in a certain way. Tax breaks to encourage you to buy electric cars. Tax breaks so that you'll have an IRA. Tax breaks so that you will buy a home.

If we will get out of the business of trying to mold people, and instead govern and let them be free, we will all be a lot happier, and the Treasury will be a lot richer.

[disneysteve]

There isn't going to ever be an appetite for a "fair" tax code in this country. But if I was king for a day, everyone would pay a national sales tax on every good and service and be done with it. There would be no IRS, no tax forms, no tax attorneys or accountants. The more you buy, the more you pay. If you want to spend $10 million a year, you'll owe sales tax on every penny. If you want to live on $30,000 a year, you'll be rewarded with very little tax.

Want to buy a $10 million yacht? There's a 10 percent tax on it.

Want to buy a $99 round trip ticket to your local vacation hotspot for the weekend? There's a 10 percent tax on your ticket.

A national sales tax is certainly something that's been proposed for years. A flat income tax is another one. No deductions. No loopholes. No exemptions. File your return on a postcard. I'm sure none of us will ever see it happen in our lifetimes.

[TexasHusker]

A national sales tax is certainly something that's been proposed for years. A flat income tax is another one. No deductions. No loopholes. No exemptions. File your return on a postcard. I'm sure none of us will ever see it happen in our lifetimes.

It won't, because the purpose of the tax code isn't primarily to fund the Treasury. It is a means to control people.

[LivingAlmostLarge]

There isn't going to ever be an appetite for a "fair" tax code in this country. But if I was king for a day, everyone would pay a national sales tax on every good and service and be done with it. There would be no IRS, no tax forms, no tax attorneys or accountants. The more you buy, the more you pay. If you want to spend $10 million a year, you'll owe sales tax on every penny. If you want to live on $30,000 a year, you'll be rewarded with very little tax.

Want to buy a $10 million yacht? There's a 10 percent tax on it.

Want to buy a $99 round trip ticket to your local vacation hotspot for the weekend? There's a 10 percent tax on your ticket.

We have built an entire system of smoke and mirrors, much of it intended to get folks to behave in a certain way. Tax breaks to encourage you to buy electric cars. Tax breaks so that you'll have an IRA. Tax breaks so that you will buy a home.

If we will get out of the business of trying to mold people, and instead govern and let them be free, we will all be a lot happier, and the Treasury will be a lot richer.

But it unfairly taxes the lower incomes who use a great proportion of their income for necessities. If you allow food or stuff to not be taxed maybe.

[TexasHusker]

But it unfairly taxes the lower incomes who use a great proportion of their income for necessities. If you allow food or stuff to not be taxed maybe.

I get your point, but "unfairly" means 100 different things to 100 different people.

I think it's unfair that almost half of the electorate (43% last I checked), pays not a single penny of income tax.

[srblanco7]

I get your point, but "unfairly" means 100 different things to 100 different people.

Texas Husker hit the nail on the head with that one. Prior to the most recent revisions to the tax code, we were stuck paying the AMT. I considered this be "unfair", since we made a "very nice" living, but weren't bringing home ridiculous sums each year. Others might have a different perspective on what our fair share should be.

[disneysteve]

I think TH and LAL are both right here. We all define "fair" differently, but we also need to ensure that the tax system doesn't disproportionately target lower income folks. Both a flat tax and a national sales tax would be overly regressive unless adjustments are made for lower income earners.

[TexasHusker]

I think TH and LAL are both right here. We all define "fair" differently, but we also need to ensure that the tax system doesn't disproportionately target lower income folks. Both a flat tax and a national sales tax would be overly regressive unless adjustments are made for lower income earners.

Over 25 percent of the electorate - 36 million people - pay zero income tax. That’s your low income folks. Another 27 million pay 10% or less. That leaves a lot of burden for the rest of us, and I think that’s “unfair.”

[disneysteve]

Over 25 percent of the electorate - 36 million people - pay zero income tax. That’s your low income folks. Another 27 million pay 10% or less.

Exactly. If we were to switch to a flat tax or a national sales tax, they could suddenly see their tax burden shoot up. Accommodations would need to be made to protect that population and keep from driving them even further into poverty.

[TexasHusker]

Exactly. If we were to switch to a flat tax or a national sales tax, they could suddenly see their tax burden shoot up. Accommodations would need to be made to protect that population and keep from driving them even further into poverty.

Agree but won’t happen.