This thread is to debate US tax policy or any nation's for that matter, so we don't need to derail every other thread. Ad Hom at your own risk.
So, what are the basic arguments?
On the no tax side is the contention that taxes reduce private investment, that governments are wasteful and inept and I guess that taxes are theft is the extreme view. Add more...
On the more tax side is the idea that government should provide security and a social safety net that private investment can't or won't, that regulation protects the minority from the majority, in the extreme view equality of outcome rather than simply of opportunity. Add more...
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Personally I think everyone should pay taxes above some baseline amount. I think it should be a progressive rate, not because it's fair but because oligarchy and democracy are incompatible and since
oligarchy is inevitable it is stupid to encourage accumulated wealth.
As for loopholes I think it's pretty plain that if we give a break to anyone, then everyone will expect, and deserve, their own break and of course will try to work it so they have as many breaks as possible. I think home ownership for example is a good thing for society but a homeowner deduction is in effect the same as a penalty for those unable to buy so I guess I think there should be no deductions on net income whatsoever. Since I think population is the biggest threat to survival I certainly don't think there should be exemptions for child "dependents".
As for unearned income (income from anything other than labor) it should be taxed exactly the same as labor. The argument that those with capital won't invest if they must pay taxes on the profit is wrong on it's face since to not invest means zero profit and because of inflation, negative profit. And again, if oligarchy is inevitable, encouraging it further through allowing untaxed wealth accumulation is ludacris.
Corporate profit should be taxed exactly the same as wages as well. Double taxation is the cost to investors to not be held personally responsible for corporate actions.
I'm against any kind of government handout without some reciprocation. I'm not talking about what Gingrich suggested about kids mopping the school floor but if people want a government check and can work, they should be contributing to the general welfare not simply on it.
Don't take that wrong, I believe government should run health, disability, unemployment, retirement insurance systems paid for by those that use these systems, just like other essential services. It doesn't make sense to pay a for-profit business for a sense of security when it is in their self interest is to not pay on their promise.
Obviously everyone wants everything and they've gotten in the habit of getting it, to the extent of demanding that politicians pledge to reduce the little that they do pay. Obviously that isn't sustainable.
How do you see the role of government and how should it be paid for?
The legitimate object of government, is to do for a community of people, whatever they need to have done, but can not do, at all, or can not, so well do, for themselves -- in their separate, and individual capacities.
-- Abraham Lincoln, Fragment on Government (July 1, 1854)