Comments on: Orwellian tax talk http://blogs.reuters.com/david-cay-johnston/2011/10/11/orwellian-tax-talk/ Sat, 23 Mar 2013 13:49:31 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: zipkin119 http://blogs.reuters.com/david-cay-johnston/2011/10/11/orwellian-tax-talk/#comment-465 Fri, 21 Oct 2011 04:29:40 +0000 http://blogs.reuters.com/david-cay-johnston/?p=117#comment-465 Help me understand. Deficit hawks in Europe denounce Greece for lax tax-collection practices. Conservatives in this country welcome the axing of enforcement employees from the IRS. If tax-collection is bad, Greece is good. Right?

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By: quattro4 http://blogs.reuters.com/david-cay-johnston/2011/10/11/orwellian-tax-talk/#comment-341 Fri, 14 Oct 2011 05:22:05 +0000 http://blogs.reuters.com/david-cay-johnston/?p=117#comment-341 So raising taxes is going to create new jobs? How exactly? Hiring more governent employees and workers for short term projects? The increases in tax rate will encourage further job cuts and eliminating/ delaying expansion of companies.

Mr. Johnston, the Left’s plan is as flawed as those you critiqued. Why cannot you see this?

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By: zotdoc http://blogs.reuters.com/david-cay-johnston/2011/10/11/orwellian-tax-talk/#comment-333 Wed, 12 Oct 2011 14:35:57 +0000 http://blogs.reuters.com/david-cay-johnston/?p=117#comment-333 Your figures are part of the double speak. You list per capita income tax, but half the country pays no income tax at all. Herman caine is right. Our constitution is suppoed to guarantee equal protection under the law. Our current system of income tax is antithetical to this equality. Each of us should be allowed to excercise the talents and gifts given us. some will make more money. welcome to teh real world.

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By: Acetracy http://blogs.reuters.com/david-cay-johnston/2011/10/11/orwellian-tax-talk/#comment-330 Wed, 12 Oct 2011 10:55:26 +0000 http://blogs.reuters.com/david-cay-johnston/?p=117#comment-330 Mr. Johnston, YOu should point out how the current tax structure on short term capital gains, derivatives, private equity, and investment real estate have changed the US financial markets into a speculators nirvana. The current boom/bust nature of the US equity markets for the past 25 years and now since 2008 the incredibly volatile credit markets are all due to the incredibly low tax rates that short term traders enjoy.

It makes no sense that the US tax code ties short term capital gains to an individual’s marginal income tax rate (generally 28%). Prior to the Reagan tax changes top marginal rates could be has high as 70% – which provided a huge difference between short term and long term capital gains taxes. Today’s rates are so close (28 vs. 15) that there is no incentive for holding investments long term – and thus you have a trader’s market, not an investor’s market.

Also since the Reagan tax changes, derivatives have grown exponentially throughout our financial markets. Why? Because of the extremely low tax rates on futures and index options coupled with the deduction for margin interest (leverage). IN short the US tax code is geared to benefit the speculator, and doesn’t reward the long term investor.

Finally, the real estate bubble has a lot to do with the 1031 exchange which allows investment real estate gains to be 100% deferred indefinitely if the proceeds are piled back into another piece of real estate. There is no economic rationale to give real estate such a favored tax preference and distorts the whole US economy.

Occupy Wall Street should be chanting: 80% Tax Rate on Short Term Gains!! That will get the US back to investing in its people, rather than speculating…

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By: murzak http://blogs.reuters.com/david-cay-johnston/2011/10/11/orwellian-tax-talk/#comment-328 Wed, 12 Oct 2011 01:18:01 +0000 http://blogs.reuters.com/david-cay-johnston/?p=117#comment-328 http://online.wsj.com/article/SB12356155 1065378405.html?mod=djemEditorialPage

What would you propose, Mr. Johnston? ALL income should be taxed at a flat rate. NO income should be taxed twice. I’m middle class and am not enamored of the 999 plan as it basically amounts to a VAT. I feel a VAT, on top of our income tax, is pretty much a foregone conclusion unless a flat tax system is adopted.

Auditors don’t keep the ‘rich’ from protecting their wealth as the Laffer curve dictates. All the auditors, the SEC, etc. didn’t catch Madoff until he’d bilked thousands out of Billion$. Elimination of the current tax code and abolishment of the IRS have to be the first step to a real solution.

TARP, stimulus and most likely stimulus 2: all passed by Democrats and the Occupy Wall Streeters demand Barry’O be handed another term?!. Until taxes are simple enough that everybody can understand them, we’ll all continue to be the rubes chanting class warfare/envy that the likes of Obama and Boehner dream of.

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By: beowu1f http://blogs.reuters.com/david-cay-johnston/2011/10/11/orwellian-tax-talk/#comment-327 Tue, 11 Oct 2011 22:58:12 +0000 http://blogs.reuters.com/david-cay-johnston/?p=117#comment-327 “Cain’s plan also imposes a one-time 9 percent tax on existing wealth, which may surprise his wealthy friends.”
Ha ha, so its really a 9-9-9-9 plan, that would be a surprise. Actually a wealth tax isn’t a bad idea if its taken in annual increments (I’ll leave it to Calvin Johnson and Alan O. Dixler to explain why its constitutional).

James Bowery has suggested a net asset tax with a floating rate tied to 3 month Treasuries rate, 0.02% currently. However as economy improves, the CBO expects 3 mo T-bill rate to rise to 5.0% by 2016 (and stay there). Let’s see, 10% owns 2/3rds of $60T in household wealth. With a $40T tax base, a net asset tax of .02% raises $8 billion, less than is collect now by alcohol taxes, while a NAT rate of 5% would raise $2.0 trillion, slightly more than is presently raised by income tax and FICA combined. Now THAT’S a counter-cyclical fiscal policy! Here’s the sneaky part of Bowery’s idea, the tax rate would never get to 5.0% (Tsy would still get the money), since there’d be an awful lot of wealthy people with an incentive to step into the 3 month T-bill auction every Monday to “bid down” their own tax rate.
http://majorityrights.com/index.php/webl og/comments/doing_the_basic_math_for_net _asset_tax_as_proposed_by_bowery_in_1992  /

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By: mdblitz http://blogs.reuters.com/david-cay-johnston/2011/10/11/orwellian-tax-talk/#comment-326 Tue, 11 Oct 2011 21:25:18 +0000 http://blogs.reuters.com/david-cay-johnston/?p=117#comment-326 It figures. You knew when Glass-Steagle was repealed and capital gains went to 15% that a tremendous amount of value was about to be sucked out of the system. With a gross income of just over $50k/yr, before overtime, I am relegated to swilling state approved beverages. My defered income in the form of pension has no form. The only thing the president of the country is good at is promising to give more to those who do less. I can imagine there are those in this world who are just rolling all over the floor laughing their butts off over, S&L, Enron and now Tarp.

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By: matthewslyman http://blogs.reuters.com/david-cay-johnston/2011/10/11/orwellian-tax-talk/#comment-325 Tue, 11 Oct 2011 18:35:46 +0000 http://blogs.reuters.com/david-cay-johnston/?p=117#comment-325 More evidence for the above (based on impartial hard data from taxpolicycenter.org and the US Bureau of Labor Statistics):

http://www.slyman.org/blog/2011/07/reaga nomics-and-prudent-taxation/

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By: Biscayne http://blogs.reuters.com/david-cay-johnston/2011/10/11/orwellian-tax-talk/#comment-324 Tue, 11 Oct 2011 18:09:38 +0000 http://blogs.reuters.com/david-cay-johnston/?p=117#comment-324 Very good article. I wonder ,though, how many of your ignorant fellow Americans will read it !

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By: Ocala123456789 http://blogs.reuters.com/david-cay-johnston/2011/10/11/orwellian-tax-talk/#comment-322 Tue, 11 Oct 2011 16:45:18 +0000 http://blogs.reuters.com/david-cay-johnston/?p=117#comment-322 no tax no government pure anarchy we want… viva mexico… perry presidente and cocaine will be our national drug… love endless freedom and wild capitalism… chimichangas for everyone…

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