fairtax.org - PeachParts Mercedes-Benz Forum

thayer · #1 09-13-2010, 09:21 AM

so, I found out this morning on my conference call at work that the taxes on Dividends will be going from 15% to 39.6% in 2011 and then on to 43.4% in 2013. I'm so mad I can't concentrate. In looking for things besides just voting in politicians who say they are going to lower taxes I came across fairtax.org. It is a fascinating site.

check it out and let me know what you think.

Here is the info on the sunset provision.

10% bracket will rise to 15%
25% bracket will rise to 28%
28% bracket will rise to 31%
33% bracket will rise to 36%
35% bracket will rise to 39.6%

Tax brackets for married couples will be narrowed, and the standard deduction for married couples will no longer be double the standard deduction available to single individuals.
Child Tax Credit will be cut from $1,000 per child to $500 per child
Dependant Care and Adoption Credit will be cut.
AMT – is anticipated to affect 28.5 million families in 2011, up from 4 million in 2010.

Capital Gains Taxes:
Will rise form 15% to 20% in 2011.
Will rise from 20% to 23.8% in 2013.

Dividends Tax:
Will rise from 15% to 39.6% in 2011.
Will rise from 39.6% to 43.4% in 2013.

National Health Care Taxes:
Health Savings Accounts (HSA), Flexible Spending Accounts (FSA), or Health Reimbursement Accounts (HRA) are no longer eligible for use in purchasing OTC medication.
Flexible Spending Accounts (FSA) will no longer be eligible for funding in excess of $2,500 a year.
Non-medically related withdrawals from HSA will be subject to 20% penalty.
And much more

raymr · #2 09-13-2010, 09:42 AM

I have been a big proponent of FairTax. Unfortunately it is so radical that it has very little hope of happening in my lifetime.

But look up the Wyden-Gregg proposal. A common sense plan to simplify the current system.

thayer · #3 09-13-2010, 10:40 AM

I checked out that proposal. It looks fantastic compared to what we have now. And it has a snow-balls chance to get through if we put the right people in chair to yay or nay it.

Rahulio1989300E · #4 09-13-2010, 11:05 AM

Does the dividends tax apply to only, say, stocks that you own that pay a dividend to you on a timed interval? Or does it apply to more things? I was thinking about buying some stable, dividend paying, stocks that I have been eying for some time, but now that I loose 40% to taxes, I might box that idea.

thayer · #5 09-13-2010, 11:13 AM

DISCLAIMER: I am a financial planner, I Do not offer tax, legal, or marital advice for a fee. please consult your respective licensed professionals for such information.

That being said,

If the tax cuts are extended, the tax on dividends will only apply to those who make over 250k per year. (our good president will edit it to not extend to the "wealthy")

Feel free to make the trade and then when december comes around, we should know a bit better what will happen to the tax code. Taxes should never stop you from attempting to make money. You would still get money from owning the dividend producing stocks, you just have to look at making that money work as hard as it can, it may still be that equity income is the way to go even with the tax increase...everything else would be going up too anyway.

Cheers.

Kent

aklim · #6 09-13-2010, 11:32 AM

A better system would be to make it a tax so that we all pay the same percentage. Buy a $100 million dollar mansion? Pay 10% (for example) and your tax is $10 million. Buy a 100K house? Tax is $10K. Married to Octomom? Sorry, no deductions. 1 kid? No deductions.

Hatterasguy · #7 09-13-2010, 11:52 AM

Its nuts how much they take in taxes. Federal are only a small part, the state and local governments suck a bunch out of you to.

I figure its 50% when you add them all up, totally nuts.

I'm just glad I can keep the section 8 bums in newer MB's and the government contract workers in Iraq in the six figure range.

aklim · #8 09-13-2010, 11:57 AM

Quote:

Originally Posted by Hatterasguy

Its nuts how much they take in taxes. Federal are only a small part, the state and local governments suck a bunch out of you to.

I figure its 50% when you add them all up, totally nuts.

I'm just glad I can keep the section 8 bums in newer MB's and the government contract workers in Iraq in the six figure range.

Ah, but Sir. If they did take it all in one lump sum, you'd know what they charged you and you'd be pissed. That would mean they would have to spend more within their means. This way, a little here, a little there and you don't know exactly how much you paid.

raymr · #9 09-13-2010, 03:33 PM

Quote:

Originally Posted by aklim

A better system would be to make it a tax so that we all pay the same percentage. Buy a $100 million dollar mansion? Pay 10% (for example) and your tax is $10 million. Buy a 100K house? Tax is $10K. Married to Octomom? Sorry, no deductions. 1 kid? No deductions.

Own a house? No mortgage deduction.

aklim · #10 09-13-2010, 03:42 PM

Quote:

Originally Posted by raymr

Own a house? No mortgage deduction.

Exactly. No shelters, no nothing. Spend more, pay more. After all, it taxes the infrastructure more. Just like gas. Buy more, pay more. Don't care who you are, you pay the same tax.

LUVMBDiesels · #11 09-13-2010, 05:02 PM

I can see a 10% flat tax on everybody.
Then the tweaks will start...
Let's have a 5% tax break for weasel farmers
Let's have a 9% tax break on everybody making less than $X
Let's put a new cap of 15% on people making more than $Y

and so on until you have the old tax code back...

Remember the IRS is not going to like a flat tax.
Neither are the accountants
Neither are the tax attorneys
Neither are the don't tax the poor advocates
Neither are the soak the rich advocates
Neither are the big corporations

etc
etc

Chas H · #12 09-13-2010, 11:27 PM

Quote:

Originally Posted by aklim

A better system would be to make it a tax so that we all pay the same percentage. Buy a $100 million dollar mansion? Pay 10% (for example) and your tax is $10 million. Buy a 100K house? Tax is $10K. Married to Octomom? Sorry, no deductions. 1 kid? No deductions.

Would the same percentage include all taxes? Or just federal taxes?
There are no federal taxes on the sale of homes.

aklim · #13 09-14-2010, 12:44 AM

Quote:

Originally Posted by Chas H

Would the same percentage include all taxes? Or just federal taxes?

There are no federal taxes on the sale of homes.

But of course.

No kidding. Next time I'll try to list everything to prevent nit picking.

thayer · #14 09-13-2010, 12:00 PM

I think that transparency is coming. thats why I posted the new numbers. We need to know whats in the contract before we sign it.

aklim · #15 09-13-2010, 12:07 PM

Quote:

Originally Posted by thayer

I think that transparency is coming. thats why I posted the new numbers. We need to know whats in the contract before we sign it.

Not in your life or mine. Lets face it. If YOU were in that group, would YOU want transparency? Not as long as a human being is running it will there be transparency