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Tax simplification and Personal Accounts:

 
 
Reply Thu 27 Jan, 2005 12:42 pm
Quote:
"The PBGC is a government entity created in 1974 after some bankruptcies left thousands of retirees without pensions. The PBGC insures -- but not completely -- companies' pension funds. Since 1991 companies with pension plans have been billed $19 annually for every worker and retiree covered by the plans. The money -- about $1 billion a year -- funds the PBGC."


The current administration has proposed a 58% increase in company premiums to help cover the PBGC's current $23 billion deficit. Since the PBGC is taking over the pilots' pension plan of United Airlines and will soon have all of US Airways' pensions, just as in recent years it took over many from the steel industry, we can probably look forward to more of the same as the government (read taxpayers) take the pipe for past efforts of large companies to attempt to escape from past poor negotiating decisions that now leads them to seek such poorly disguised corporate bailout schemes. This was certainly not the government's intent when the PBGC was conceived and implemented, but the reality is undeniable.

We could all participate in another round of finger pointing but I am more interested in candle lighting to alleviate further such situations. I am poorly educated in government financial matters so I tend to think in elemental and basic terms and concepts. So, given the Bush's administration affinity towards "ownership" or personal accounts, combined with an aversion to increased taxes and even their simplification why not this: double, at least, the current limits for legal contributions to 401k accounts and or IRA accounts? Additionally, given America's extremely low personal saving rate, why not add incentives to encourage a higher rate of saving like allowing all IRA's contributions the 401k attribute, as relates to payroll taxes, of a before taxable income deductibility? Why not eliminate taxes on all interest and dividends below say $3-$4 grand? Given the depreciation of the dollar and its possible quiet future downgrade by another 15%-20%, this might help keep down interest rates in the future.

Forget a national sales tax, for this places a heavier burden on those with lower incomes in relation to obligatory spending on such items as petrol, transportation, food, and clothing and could cut down on the purchase of more expensive durables such as autos. Instead, use a flat tax of 3-7% with absolutely no deductions allowed. Businesses should get the same simple treatment: lower tax rates with no deduction for expenses. Why should an individual who owns his own business be allowed to deduct the expense of his big SUV, its gas, and insurance while the same is denied to a person who merely works as an employee? Are not both vehicles used in the process of generating income?

What do you think?

JM
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Type: Discussion • Score: 2 • Views: 3,876 • Replies: 9
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Cycloptichorn
 
  1  
Reply Thu 27 Jan, 2005 12:55 pm
Why not just tax the hell out of the rich? They've had it too good for too long, and frankly, I don't give a damn if it means they can't afford a new boat this year...

Cycloptichorn
0 Replies
 
McGentrix
 
  1  
Reply Thu 27 Jan, 2005 01:48 pm
Cycloptichorn wrote:
Why not just tax the hell out of the rich? They've had it too good for too long, and frankly, I don't give a damn if it means they can't afford a new boat this year...

Cycloptichorn


Laughing That's funny. You really are a socialist, aren't you?
0 Replies
 
Cycloptichorn
 
  1  
Reply Thu 27 Jan, 2005 02:08 pm
Yes. Money and the acquisition of wealth has perverted our society to the point where it has become the main motivation for people's lives, which has directly or indirectly lead to the vast majority of problems we face as a society today.

It's time for a change.

Cycloptichorn
0 Replies
 
McGentrix
 
  1  
Reply Thu 27 Jan, 2005 02:15 pm
I guarantee you that if you took all the money in the US and divided it up equally amongst every citizen, within a generation the rich will be rich again and the poor will be poor again.
0 Replies
 
joefromchicago
 
  1  
Reply Thu 27 Jan, 2005 02:41 pm
Re: Tax simplification and Personal Accounts:
JamesMorrison wrote:
I just read a George Will column. This enlightened me...

Those are words one seldom sees strung together. "George Will" and "enlightened?" What can possibly explain this apparently oxymoronic statement?

JamesMorrison wrote:
I am poorly educated in government financial matters so I tend to think in elemental and basic terms and concepts.

Oh, I see.
0 Replies
 
Cycloptichorn
 
  1  
Reply Thu 27 Jan, 2005 02:41 pm
I agree with that as well.

There are those who have proven themselves quite adept at manipulating the system so as to give themselves more money at the expense of others. Unchecked, they'd just do it again. So we have to change the system so that they cannot.

What I would like to see is a re-definition of the system, and of money, altogether. At some point we have to begin teaching (most likely our kids) what is important in life, and do away with money and Fame worship.

Cycloptichorn
0 Replies
 
Baldimo
 
  1  
Reply Thu 27 Jan, 2005 03:01 pm
Cycloptichorn wrote:
I agree with that as well.

There are those who have proven themselves quite adept at manipulating the system so as to give themselves more money at the expense of others. Unchecked, they'd just do it again. So we have to change the system so that they cannot.

What I would like to see is a re-definition of the system, and of money, altogether. At some point we have to begin teaching (most likely our kids) what is important in life, and do away with money and Fame worship.

Cycloptichorn


You see a problem, I see a great countty. It is the drive for something better that has taken this courty to the top. We have an entrapnueral spirit unlike any other. No other country in the world has the # of self start business like the US has. We also have more businesses that started out as nothing and have worked themselves into multi- million or billion dollar corps. To make a change would bring this country to it's knees and break its back.

I say if you want more, then try harder and don't settle for 40 hrs per week.
0 Replies
 
Cycloptichorn
 
  1  
Reply Thu 27 Jan, 2005 03:39 pm
I never said I wanted more. I just want others to have less, so those with nothing can have something.

You'll grow up eventually and realize that life sucks for a lot of people and it's not their fault.

Cycloptichorn
0 Replies
 
Baldimo
 
  1  
Reply Thu 27 Jan, 2005 05:03 pm
Being 31 and owning my own home, I know what it is like. No one handed me the keys to my house, I had to earn the money to buy it. Others should try doing the same things. There is no right to be handed the keys to a house in the US, you have to earn it.

Your constant reference to my age is bothersome. You think me young and inexperienced, well you would be wrong.
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