K
krw@att.bizzzzzzzzzzzz
Guest
On Sat, 22 May 2010 22:32:16 -0700, John Larkin
<jjlarkin@highNOTlandTHIStechnologyPART.com> wrote:
house as savings - the *largest* part of their life's savings for most.
Currently this savings is exempted from taxes (up to 1/2M for married). Put
in a consumption tax and this savings is now taxed the same as income. ...even
the after-tax part (principal) of this savings.
<jjlarkin@highNOTlandTHIStechnologyPART.com> wrote:
On Sat, 22 May 2010 23:05:29 -0500, "krw@att.bizzzzzzzzzzzz"
krw@att.bizzzzzzzzzzzz> wrote:
On Sat, 22 May 2010 19:19:25 -0700, John Larkin
jjlarkin@highNOTlandTHIStechnologyPART.com> wrote:
snip
Again you're missing the point. The point is that these folks have used theirMost retirees already have houses, furniture, pots and pans, so won't
pay a huge amount of sales tax. Basic survival stuff could be
exempted. And a lot of retirees have taxable income, which taxes will
go away.
A lot of people downsize their homes after they retire. That money (capital
gains) is currently not taxed but will be under the "fair" tax.
I don't know about a "fair" tax. What I suggest is a sales tax, a tax
on consumption. It could easily exempt capital gains, which isn't
sales or consumption.
house as savings - the *largest* part of their life's savings for most.
Currently this savings is exempted from taxes (up to 1/2M for married). Put
in a consumption tax and this savings is now taxed the same as income. ...even
the after-tax part (principal) of this savings.
That's how we got in this mess; Congress "tuning" the tax code.No change is going to please everybody.
Penalizing those who have played the game according to the rules is not
"fair". It's no better than what Obummer is doing to business.
The nice thing about a sales tax is that you can elect to not buy
stuff and not pay the tax.
Not under the "Fair Tax". *Everything* is taxed, even homes. AIUI, only new
houses have the tax charged, but the cost difference between new and old has
to equalize.
So tune it.