How To Actually Keep More Of Your Own Money

[g5000]

A rube is convinced that taking deductions, exemptions, and credits at tax time means he gets to keep more of his own money.

Sucker!

A favorite of these government gifts is the Mortgage Interest Deduction (MID). Like all tax expenditures, the MID is a government behavioral control program. In this case, you are punished with a higher tax bill if you don't borrow a shitload of money and buy a house.

If you go along with the government's social intervention, and take on all that debt, you get to take a little money out of the amount you owe to the government.

Sadly, this is a huge ripoff scheme which transfers wealth from your pocket to the pockets of special interests.

How?

Well, the MID is rolled into the cost of your house. You are paying more for your house because of it. So the MID is cancelled out by your higher mortgage payment. You aren't getting to keep more of your own money. You have just been fooled into thinking you are.

Now...who benefits from a higher cost house?

The guy who built it.

The guy who loans you the money at interest to buy it.

The guy who sells it to you for a commission.


THAT is who gets to keep more of your money, not you, thanks to the MID.

http://www.taxpolicycenter.org/Uplo...erest-Deduction-Affect-the-Housing-Market.pdf

One widely cited 1996 study by Dennis Capozza, Richard Green, and Patric Hendershott estimated that eliminating the mortgage interest and property tax deductions would reduce housing prices in the short term by an average of 13 percent nationwide, with regional changes ranging from 8 to 27 percent.

You are paying 13 percent more for your house because of the MID.

About $30,000 extra for a $250,000 house. Who is getting that extra money you paid?

Realtors, home builders, brokers, and bankers.

Suckers. Still think the MID is you getting to keep more of your own money?


Not only that, you are paying higher tax rates to pay for the deduction. So not only is your MID cancelled out by higher home prices, you are paying higher taxes.

All those government gifts handed out each year in the form of these deductions, exemptions, and credits to the tune of $1.2 trillion have to be made up for somehow. And they are made up for by raising everyone's tax rates, and by borrowing since the taxpayers would revolt if the budget was balanced with tax rates high enough to pay for all those gifts.


Remember, kids. You are not getting to keep more of your money. Your wealth is being transferred up the food chain legislatively by a government which treats you like rats in an experiment.

So how can we ACTUALLY get to keep more of our own money? By paying lower tax rates. If you pay a lower tax rate than you are paying now, then you are definitely keeping more of your own money, and it isn't going to anyone else.

And how can we pay lower tax rates?

By eliminating these thieving tax expenditures which are taking money from your pocket and putting in the pockets of special interests who pay hundreds of millions of dollars a year to keep those expenditures alive in the tax code. That's how. That would be $1.2 trillion worth. You can lower taxes A LOT if you had $1.2 trillion to play with.

WE can keep $1.2 trillion of OUR money.

 

[g5000]

Ronald Reagan understood this ripoff scheme.

So do Ted Cruz, Marco Rubio, and Rand Paul, among others. Its just that they aren't honest enough to admit their tax plans all have one thing in common: the mass extinction of thousands and thousands of deductions, credits, and exemptions. Instead, they spew populist shit like "you will be able to fill out your taxes on a postcard". They don't openly tell you the only way that is possible is by no longer being able to claim all those tax expenditures. They are too cowardly to be that up front about it.

But Reagan wasn't afraid to say so.



Reagan's own words:

Over the course of this century, our tax system has been modified dozens of times and in hundreds of ways, yet most of those changes didn't improve the system. They made it more like Washington itself—complicated, unfair, cluttered with gobbledygook and loopholes designed for those with the power and influence to hire high-priced legal and tax advisers.

<snip>

I'll start by answering one question on your minds: Will our proposal help you? You bet it will. We call it America's tax plan because it will reduce tax burdens on the working people of this country, close loopholes that benefit a privileged few, simplify a code so complex even Albert Einstein reportedly needed help on his 1040 Form, and lead us into a future of greater growth and opportunity for all.

<snip>

The power to tax is the power to destroy. For three decades families have paid the freight for the special interests.

<snip>

We're reducing tax rates by simplifying the complex system of special provisions that favor some at the expense of others. Restoring confidence in our tax system means restoring and respecting the principle of fairness for all. This means curtailing some business deductions now being written off; it means ending several personal deductions, including the State and local tax deduction, which actually provides a special subsidy for high-income individuals, especially in a few high-tax States.

 

[g5000]

Start demanding of your Congressmen and Senators that we eliminate all tax expenditures.

Write.

 

[Dont Taz Me Bro]

We need to move to a flat income tax with no deductions period and be done with it, but this very unlikely to happen.

 

[bendog]

That's what I don't understand about the Big Quack. This would actually help his constituency that is over represented by white, older and less educated, but not orthodox gop card carriers. Neither the dem elite nor DLC nor gop establishment is going to push this.

 

[SuperDemocrat]

We need to move to a flat income tax with no deductions period and be done with it, but this very unlikely to happen.

How about just remove the income tax completely.

 

[ScienceRocks]

Move to Africa, Mexico or central America and you will most certainly keep more of it. Of course, you won't live in a first world nation.

 

[Arianrhod]

We need to move to a flat income tax with no deductions period and be done with it, but this very unlikely to happen.

How about just remove the income tax completely.

How will you finance your military?

 

[ScienceRocks]

We need to move to a flat income tax with no deductions period and be done with it, but this very unlikely to happen.

How about just remove the income tax completely.

DUmb...

China is about to over take us as the world leader in science, r&d and everything you can imagine. Yet, you want to cut the hell out of us? lol...Don't say Obama wants to tar us down because we all know you do.

 

[bendog]

We need to move to a flat income tax with no deductions period and be done with it, but this very unlikely to happen.

How about just remove the income tax completely.

Is this where you try to hijack the thread with the notion we can balance the budget by cutting?

 

[g5000]

That's what I don't understand about the Big Quack. This would actually help his constituency that is over represented by white, older and less educated, but not orthodox gop card carriers. Neither the dem elite nor DLC nor gop establishment is going to push this.

Actually, Rand Paul, Ted Cruz, and Marco Rubio are all three pushing variations of this theme. You don't know this because they are too cowardly to tell you.

But you have heard Ted Cruz say "abolish the IRS", right? You've heard him say under his tax plan you would be able to fill out your taxes on a postcard, right?

There is only one way that is possible. Ted Cruz's tax plan is the elimination of tax expenditures.

No, really!

So is Rand Paul's tax plan. You've seen his video where he blows up the tax code, right?

Same thing. The elimination of tax deductions, credits, and exemptions.

But Paul then goes and creates a VAT in his tax plan! WTF?


Marco Rubio's tax plan is more nuanced, but is along the same lines.


So the Reaganesque tax expenditure elimination is starting to come back in vogue. It's just unfortunate the rubes have been so conditioned to go along with this massive government intervention in their lives, that people who call themselves conservatives get violent when you even talk about it!

 

[bendog]

That's what I don't understand about the Big Quack. This would actually help his constituency that is over represented by white, older and less educated, but not orthodox gop card carriers. Neither the dem elite nor DLC nor gop establishment is going to push this.

Actually, Rand Paul, Ted Cruz, and Marco Rubio are all three pushing variations of this theme. You don't know this because they are too cowardly to tell you.

But you have heard Ted Cruz say "abolish the IRS", right? You've heard him say under his tax plan you would be able to fill out your taxes on a postcard, right?

There is only one way that is possible. Ted Cruz's tax plan is the elimination of tax expenditures.

No, really.

So is Rand Paul's tax plan. You've seen his video where he blows up the tax code, right?

Same thing. The elimination of tax deductions, credits, and exemptions.

But Paul then goes and creates a VAT in his tax plan! WTF?


Marco Rubio's tax plan is more nuanced, but is along the same lines.


So the Reaganesque tax expenditure elimination is starting to come back in vogue. It's just unfortunate the rubes have been so conditioned to go along with this massive government intervention in their lives, that people who call themselves conservatives get violent when you talk about it!

Well, Rand Paul's irrelevant. Cruz is, imo, less than sincere. He's courting the establishment, and it remains to be seen what he'll trade. Rubio (and Paul Ryan) were out in front. But, Rubio is trying to hold onto his status of fall back from Jeb! for the establishment.

And Ryan was perhaps not disingenuous when he traded any real reform for Reid's promise not to gum up appropriations for a year.

But, I still think the only way to do this is to force the establishment to accept it ... or else not win elections. And, Trump had the establishment by the short hairs ... until he became the Big Quack.

But you are right that we'd be better off with no deductions, and no credits ... although if we did away with deductions to employers for healthcare, I don't see how private sector workers can have health care without tax credits.

 

[bendog]

PS, and doing something like this is the ONLY way to finance any middle class tax relief, and doing THAT is the only way to really increase overall demand without just creating another speculative bubble. And that's why I think that Paul Ryan is on board, in his heart of hearts. But, he did see that the gop had to get through the election w/o a shutdown.

A president Cruz, and possibly even a Hillary, could be brought on board if the idea had the promise to make a real difference.

 

[Zander]

We need the government to stop picking winners and losers via tax policy.

 

[Indeependent]

We need to drive on roads that have been destroyed by Hurricane Sandy.