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. Corporations, for instance, deduct their charitable donations, auto expenses, insurance and utilities. An individual, on the other side, isn’t allowed to deduct any expenses. Those in the lower income bracket end up paying more taxes. This is inconsiderate as they have expenses such as insurance, medical expense, rent and utilities.
The main focus of tax reforms is to get rid of deductions and reduce rates. This isn’t helpful to those in the lower income category. Tax systems need to have similar rules Every form of income needs to be taxed. This way, income from investments will be treated as ordinary income.
The tax system should be equitable to enable everyone utilize 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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Every person should be permitted to deduct their expenses. These deductions include charitable donations, maintenance of personal property, uniforms, investment expenses, food, tax preparation fees, insurance, transportation costs, rent and utilities. Just like corporations, normal taxpayers should deduct their everyday costs from their income.
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Unemployment benefits are claimed as income. Tax is levied on this income when one has expenses like gas, rent and health insurance. This is inconsiderate because the person has no job and needs to spend money while seeking a job.
401(k) plans shouldn’t have limits. Saving for retirement is crucial. For you to retire comfortably, you need to save some money. However, it may be difficult to do so because of tax restrictions. Saving cash can minimize the stress on Medicare as well as Social Security.
There shouldn’t be deductions for vacations, private jets and maintenance costs. In addition, child support payments don’t need deductions because the one making the payments has paid the tax. Base deductions and standard deductions should be eliminated from the tax system. This will bring about fairness in taxation and take care of tax returns. Self-employment tax needs to be similar to employee tax. This will ensure that the amount of income won’t affect the tax rates. One doesn’t need to be penalized for running a business.
The tax code is in favor of individuals with money. The tax rates need to be in proportion to the actual expenses. This will enable every person to pay taxes as well as afford to cater for various expenses. Additionally, people will have the ability save cash as well as grow financially. With more savings, you can lead a better life upon retirement.
Legislators can help actualize tax reforms. Basic things should have lower taxes. Luxury items like automobiles, televisions and yachts should have higher tax rates. This would increase the tax collected every year.