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Yakk · 04-15-2008, 08:55 PM

Capital gains are a trivial tax shelter. Deferring taxes is saving taxes. Or do you intend to tax on the value of assets every year? How do you value assets when they aren't being sold?

No corp. income tax allows for easy capital-gains like tax deferment. I make a corporation, give it my income (not that hard), and have it reinvest my money.

Viola -- compounded income growth without being taxed.

What is the difference between a gift and income? Under your proposal, the gift isn't taxed. Or is there a special tax-free gift that you get to give when you die?

Take two situations: one has a 50% chance of losing 10,000$, and a 50% chance of gaining 20,000$, the other has a 100% chance of gaining 9000$.

Under your system, option B is way better, because your tax system kills deductions: while economically A is better.

That is just a handful of quick problems with your proposal. Do you require a deconstruction of all of them, or do you assert that every part of the proposal is sound?

04-15-2008, 08:55 PM	#23 (permalink)
Yakk Wehret Den Anfängen! Location: Ontario, Canada	Capital gains are a trivial tax shelter. Deferring taxes is saving taxes. Or do you intend to tax on the value of assets every year? How do you value assets when they aren't being sold? No corp. income tax allows for easy capital-gains like tax deferment. I make a corporation, give it my income (not that hard), and have it reinvest my money. Viola -- compounded income growth without being taxed. What is the difference between a gift and income? Under your proposal, the gift isn't taxed. Or is there a special tax-free gift that you get to give when you die? Take two situations: one has a 50% chance of losing 10,000$, and a 50% chance of gaining 20,000$, the other has a 100% chance of gaining 9000$. Under your system, option B is way better, because your tax system kills deductions: while economically A is better. That is just a handful of quick problems with your proposal. Do you require a deconstruction of all of them, or do you assert that every part of the proposal is sound? __________________ Last edited by JHVH : 10-29-4004 BC at 09:00 PM. Reason: Time for a rest.