They manner in which taxes are levied isn’t fair. People who gain their income from investments pay fewer taxes. This creates a greater gap between rich people and poor people. For instance, corporations deduct their insurance, utilities, charitable donations and auto expenses. An individual, on the other side, isn’t allowed to deduct any expenses. Low-income earners ultimately pay more taxes. This isn’t fair because they have expenses like utilities, rent, medical expense and insurance.
Tax reforms are majorly centered on eliminating deductions and lowering rates. This doesn’t help individuals in the lower income brackets. Rules in tax systems should be the same. Every form of income needs to be taxed. This way, income from investments will be treated as ordinary income.
The tax system needs to be fair to allow everyone to use their expenses. Individual returns should allow every taxpayer to have the same advantages. The government should treat every income in the same manner.
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Everyone should be allowed to deduct their expenses. The deductions include maintenance of personal property, charitable donations, investment expenses, uniforms, tax preparation fees, food, transportation costs, insurance, utilities and rent. Just like corporations, normal taxpayers should deduct their everyday costs from their income.
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Unemployment compensation is taken as income. The earnings are taxed as one incurs expenses like health insurance, gas and rent. This isn’t fair because the individual is jobless and must spend cash while looking for a job.
401(k) programs shouldn’t have restrictions. Saving for retirement is crucial. You should save some cash to retire comfortably. To do so, however, may be hard due to tax restrictions. Saving cash can minimize the stress on Medicare as well as Social Security.
There should be no deductions for private jets, maintenance costs and vacations. In addition, child support payments don’t need deductions because the one making the payments has paid the tax. The tax system should get rid of standard deductions and base deductions. This will bring about fairness in taxation and take care of tax returns. Self -employment tax and employee tax should be the same. This way, the income amount won’t affect the rates of tax. One shouldn’t be penalized for owning a business.
The tax code favors those who have more money. The tax rates need to be in proportion to the actual expenses. This will allow every taxpayer to pay taxes and pay for different expenses. Additionally, people will have the ability save cash as well as grow financially. With more money to save, you can secure a better life after retirement.
Lawmakers can help in actualizing tax reforms. Basic items shouldn’t have high tax rates. Luxury things like TVs, yachts and automobiles should have high tax rates. This would increase the tax collected every year.