Streamlining Federal Income Taxes

Driven by income tax induced madness, I’ve written an article (or rant) describing how to streamline federal income tax to make the system much simpler. Due to some of the changes, the poor generally pay slightly less and the rich slightly more, but the differences are small. There’s alot of changes that mostly offset eachother. For the most part, my system just changes or eliminates credits, deductions, and such. It also combines some taxes and basically butchers one of them. Taxes could (theoretically) be cut slightly because the operating costs of cutting taxes would be slightly reduced.

The article is at http://www.cowgodgames.com/articles/streamliningincometax.php .

It includes a link to an applet that lets you compute your taxes under the new system. Since the new system doesn’t have alot of variables, it was easy to write the applet. I cut one corner in that I only asked for “Total Income” instead of asking for each different kind of income.

Reducing taxes by simplifying is always a good idea, but

[quote]With all the taxes coming out of my income, almost 17% of my income goes to taxes.
[/quote]
You lucky bastard! ;D

I pay the rediculously high amount of 52% income tax >:(
And then of course of the 48% I have left I still have to pay the city’s tax, tax for driving a car, extra tax on gasoline, tax for parking the car, 19% VAT etc.etc.

ha! 19% VAT - we pay 25%! and up to 63% income tax!!

Wow. You two have it much worse than I do.

Still, I’m going to complain about taxes anyways. I admit that I do benefit from some government services, but I don’t believe it’s worth 17% of my income (being relatively poor, I don’t have to pay too much). Sales tax (similar to VAT) is only 7% where I live, but it’s a stupid tax. Gasoline has its own taxes AND subsidies, so I have no idea how much it should actually cost.

I don’t have a car and have few expenses, so I don’t pay taxes other than income tax. This year, I plan to move, which means that I’ll have to pay property tax.

Yeah, 17% - LUXURY!

Here in Ontario I pay just under 50%… then of course there is the 14% sales tax if I want to spend any of the money I have left.

Ditto.

Glad I don’t live in Europe though. Phew that’s steep.

I wager your 17% does not take into account the embedded taxes in goods and services. This doesn’t show up on a receipt: it is because each link in the chain has to pay their own taxes. The actual taxes payed by US citizens is closer to 33% of income, if I recall correctly. The best proposal I have seen for revising the US tax system is the Fair Tax: www.fairtax.org. I enjoyed reading The Fair Tax Book, which explains the plan quite well. Amazon link: http://www.amazon.com/Fair-Tax-Book-Saying-Goodbye/dp/0060875496/

I have no way to include embedded taxes in goods and services. Alot of people pay alot more because I’m in a very low tax bracket.

I looked at the Fair Tax website. It looks like a much better idea, but I fear it will never be implemented.