When Popular Science tested the first computer programs to prepare tax returns in February 1983, we wanted to know two things: Would it be faster than doing it by hand? Would it save us money? (We also enjoyed the idea of a personified computer punching greedy Uncle Sam in the nose.)
Writer Gordon McComb tried out three scenarios. First, McComb asked the computer to recalculate his 1981 tax return. Second, he asked it to determine whether averaging his income would save him money. Finally, he wanted see how well he'd do with both income-averaging and itemized deductions. And then the big gee-whiz happened:
You can read the rest of the story, including not-so-nostalgia-inducing descriptions of Aardvark's Professional Tax Planner and Datamost's Tax Beater, in our February 1983 issue.
Tax the people a flat tax and or just a sales tax. Tax higher luxury items. Then stop using the complicated tax forms. Now everyone pays pays tax, legal citizens and illegal immigrants too. No loop holes for all.
@AnyIcon: That sounds nice, but sales tax is the most regressive tax system in the world. That means the poorer you are, the higher percentage you pay in taxes. Even with luxury items taxed higher.
Reason is simple: Someone making $40k a year likely spends the entire amount, so they'd pay taxes on 100% of their income. Someone making $100k a year may spend 70k, and save/invest 30k, so they'd be taxed on only 70% of their income. Someone making $5m may spend a whopping Million over the year, but they'd end up paying taxes on only 20% of their income.
Also, for someone who earns minimum wage, vs me who usually earns more than minimum wage (self employed), I have no problem with them paying less in taxes, if any at all. Even with paying no taxes they still can't go on the vacations I go on, sitll can't buy a car, still can't pay for better health care. The richer I get, it's because of this country and the people in it. The richer I get, the more responsibility I have to pay back the country that allowed me to get rich by saying "Thank you" in the form of higher taxes.
I did not invent the idea of flat tax ya know. It is in being simple that people do not like so much. Business and rich enjoy the tax law being so complicated, so they can exploit and manipulate around NOT paying taxes.
The one thing the rich and powerful do not want is something that all can understand and not cheat on, lol.
even by that logic the person makeing 70k or 1m a year still with pay more taxes then the person making 40k. but you are right it is about saving. If you make min wage and save 10% starting at age 16 you will be a millionare by the time you retire. Saving is a CHOICE, its the same reason when people win the lottery they blow all their money. they never learned how to save. So the person makeing 40k will never saving anything even if he is making 1m a year. If he is spending all of his 40k then he/she is living above his/her means and should cut spending until they reach the point of critial mass.
Case in point, myself. I was making 18k and still saved my money until I bought a income propery. All my friends went on vactation and blew their money but I sacerficed until I got somewhere. sure it was hard, eating roman noodles at 10 cents a pack for 5 years straight, but nothing was handed to me. I was all me saveing and no excuses.. now I make just shy of 300k a year off my rentals and work and if this dumb kid could do it then anyone can. I can tell you what I am sick of though. People that didnt sacerficed trying to take what I sacerficed for. Guess what .. I STILL save.. from when i was making 18k a year till 300k. again saving is a Choice.