|
Red River Valley | I had it figured out just fine you on the other hand havn't figured out it at all so here goes = I earn $100,000.00 per year but because of deperication I get to write of the purchase of $95,000.00 worth of new equipment leaving me with $5000.00 worth of income to pay taxes on, leaving me with a none taxable event. But I have spent $95,000.00 on new equipment which in turn put many people to work and created a 6% state sales tax,
Now granted at the end of my working career I will have to sell that peice of equipment which will create another sales tax event for the buyer and also allow the buyer to have a depreciation event also. Me on the other hand will have to manage the Cap Gains tax ( which you seem to think is almost impossible to do ) but if it does cost me the 12.5% tax I'm fine with that because I have defered the tax past my capital intensive period of my life and of course Mostly I'm letting inflation earn the equipment value back.
Under your formula I would earn $100,000.00 and spend nothing yes I end up with the $100,000.00 but the country loses no job's for the people building the equipment that I don't replace, no sales tax to the state that would have been paid for the equipment the truckers that were to deliver the equipment can sell out and find something else to do. the dealerships can close, and I will simply run my equipment to the end of it's life cycle which with the new equipment I bought the last 3 yrs. would get me well passed my retirement age.
Now think about the housing market that loses the Interest tax deduction and on top of that has to pay 2% sales tax I'm sure that will help the housing recovery.
I'm fully aware of the benifits to me of your simple plan the problem with it is that as I said before it will send this country into a very deep recession because small business investment will stop dead in it's tracks.
But of course the Richest of this country will make out like bandit's and on a personal basis I also would make out like a bandit.
At some point we will have to start thinking more about what is good for our country as a whole than what make me richer as an Individual. | |
|
Quite a bloodbath today.
