Crazy new IRS rule

[DP]

Flat tax. Done.

[gadje]

DP wrote:
Flat tax. Done.

what percentage?

[RAMd®d]

Who keeps receipts for everything they ever bought?


If only there were a place where one could store receipts without all the muss and fuss of storing them in a shoe box, some place where there'd be a way to access anything nearly instantly.

If only...

How could that possibly be done...

Maybe it's just impossible to to.

[Speedy]

Flat tax. Done.

The only tax that’s not a flat tax is the graduated income tax. Of course, if you want to tax the billionaires the same as the very poor, then a flat tax is just the ticket.

[mattkime]

Speedy wrote: The only tax that’s not a flat tax is the graduated income tax. Of course, if you want to tax the billionaires the same as the very poor, then a flat tax is just the ticket.

Everyone needs to have skin in the game!

[Speedy]

mattkime wrote:
[quote=Speedy]The only tax that’s not a flat tax is the graduated income tax. Of course, if you want to tax the billionaires the same as the very poor, then a flat tax is just the ticket.

Everyone needs to have skin in the game!
Everybody does pay taxes, just not income taxes. If your state has a sales tax, the poor are paying a far greater share of their income in taxes than the billionaires.

[anonymouse1]

This for stuff you SOLD, not for what you bought.

C(-)ris wrote:
[quote=Acer]
Put on your big boy pants and keep proper documentation.

With documentation, things sold at a loss aren't taxed.
With documentation, profit on things held more than a year aren't taxed up to a threshold.

IT HAS ALWAYS BEEN THUS. We were supposed to report it all along, but we didn't. Just like sales tax on internet sales.

Who keeps receipts for everything they ever bought?

[testcase]

gadje wrote:
[quote=DP]
Flat tax. Done.

what percentage?

Same as God gets: 10%

Pay the 10% you owe and get to keep 90%

Enforce it by having an 80% penalty. Offer a "bounty" of half of that 80% to whoever rats out the weasel first. People will be lining up to pay ONLY 10%.

Of course, there will be ZERO deductions for ANYTHING. If a person or business thinks that something / someone deserves support, they can support it / them from their 90%. NO more gambling with tax dollars.

[pqrst]

Speedy wrote:

Flat tax. Done.

The only tax that’s not a flat tax is the graduated income tax. Of course, if you want to tax the billionaires the same as the very poor, then a flat tax is just the ticket.

Sales taxes vary a lot not only as to the rate but also what is taxed. Example: some states have high rates but exempt groceries and medicine. Others are lower but tax everything including food and medicine.

[OWC Larry]

This rule actually came from Obama tax code changes that started requirements for any payment over $600 be reported.

This applies to used computer trade ins too.... If one Mac gets a value of over $600 - we have to get a W-9 and report the payment. Same goes if multiple trade ins over the course of a calendar year exceed $600 in calmative.

Rule was because of supposed losses in revenue from those not reporting income from small jobs, etc. So instead of people being held accountable for reporting their small income amounts... now they have to prove that payments for item sales, etc were not income and prove their cost basis in a sale.

This rule went immediately in effect for business reporting on services while Obama was still in office. Made for tons more 1099 paperwork... accounting hours... which adds nothing to actually building a business.

One affect of this was the end of a lot of small contractor opportunities in the production business. Rather than deal with the hassle of collecting W9 data... being liable for personal sensitive data, liable for accuracy of what people turned in, liable if you missed reporting an over $600 payment (maybe missed hired same person twice in the same year at different times and was over $600 for small jobs, etc)..... production companies turned to service companies to handle so there be one company they deal with and that meant one company that then controlled the crew and staff. A lot of the little guys that independently served different productions got squeezed out including the likes of caterers and restaurants and local supply stores. Cause the management company then picks a fixed group it works with in terms of contractors and service providers to also limit what it has to track and file.

I don't know how much extra in taxes they collected from those that were not reporting income... but seems to me it they probably collect as much or more from everyone else that can not or do not know how to prove the didn't get something they sold at now cost, etc.

There are always cheaters... but rules shouldn't be overly burdensome to those that are honest tax payers.

A few decades ago they started requiring that you list the social security numbers of children you claimed as dependents..... a couple million kids disappeared that year. usually several 'related' per household where the disappearances happened. That wasn't burdensome and the impact was substantial.

Anyway....

And totally - sales tax is a use tax... income tax is on net gain from services provided or sale of goods. Sell something over $600... and it's all income unless you can provide your cost in it now.

It's extremely not fun to explain to a customer why they need to now submit a W9 when they sell back a Mac.