Possible Constructive Discussion on a Tax Idea

etgryphon · #1 10-03-2005, 02:20 PM

Hey All,

Here is my hope of a real discussion on a idea I had for taxes.

A new tax called the "Charity Tax". Set it at like 5% of income rate. Now, there are two ways of pay this tax.

First, you can donate the equivalent to your tax rate to institutions with an Internal Revenue Service 501(c)(3) tax exempt status. This could go to funding health care, housing or any type of organization you want to help. Where you want YOUR money to go.

or...

You can give it to the Feds to distribute as they see fit.

I see this as making the switch to a free market economy. People can pay for what they see fit. Their is much more accountability becuse you are giving YOUR MONEY directly to the place. We don't feed the federal beast and (hopefully) more money gets to where it is needed. The Feds job is to make sure prevent fraud in the organizations. Truth in Advertizing police.

That way you could give money to the causes that YOU believe in. The money is still flowing the the less fortunate it is just now benefited from a free market system with accountability.

Help me find the problems...

-Gryph

#2 10-03-2005, 03:47 PM

Problem No. 1: Fraudulent "charities" would proliferate, and lots and lots of money would have to be spent on enforcement to attack that problem.

Problem No. 2: Eventually, the Charity Tax would end up to be "on top of" everything else.

etgryphon · #3 10-03-2005, 03:54 PM

[ QUOTE ]
Problem No. 1: Fraudulent "charities" would proliferate, and lots and lots of money would have to be spent on enforcement to attack that problem.

[/ QUOTE ]

Not arguing that this may happen. But in this free market system. They commit fraud, wham lose Fed Tax Exempt status. Now they no longer can receive the charity tax. I think in the long run you would save more money than feeding the Federal Beast. People get defrauded then they move their money elsewhere. Now, people do not have to give money to a place they can still give it to the Feds to control. Its a Win-Win for everyone.

[ QUOTE ]

Problem No. 2: Eventually, the Charity Tax would end up to be "on top of" everything else.

[/ QUOTE ]

I would rather have it on top of everything and actually help people than just slowly give more money to the Feds with less than no real accountability.

I would know where MY money was going and I can see the good that it will be doing. Now I have a stake and ownership.

-Gryph

#4 10-03-2005, 03:55 PM

[ QUOTE ]
Problem No. 1: Fraudulent "charities" would proliferate, and lots and lots of money would have to be spent on enforcement to attack that problem.

[/ QUOTE ]

Like the government welfare system. If there was ever a system built on false promises, that is it. We spend more per capita today on every problem, but the problems get worse and worse, suggesting to some that maybe the answer isn't throwing more money or creating more government programs. But dare not speak such heartless truths!

[ QUOTE ]
Problem No. 2: Eventually, the Charity Tax would end up to be "on top of" everything else.

[/ QUOTE ]

Again, like every other government program. Name one that stayed within its originally intended scope, duration, or budget.

#5 10-03-2005, 04:22 PM

Two words for us all

FLAT TAX....

We can argue until the cows come home... but the flat tax is so simple it's amazing.

If we had a nominal flat tax rate of 10% and the U.S. was required to put any increase to a popular vote... then the government would have to learn to budget just like the rest of us.

This would also end the never-ending arguement of who gets screwed the most by taxes.

You buy a $1 million doallar home you pay the same rate in taxes as someone who buys a $100,000 home.

#6 10-03-2005, 04:24 PM

Furthermore the flat tax "should" encourage more people to A) save money in order to save on taxes

-AND-

B) donate to charities... this would not be taxed due to the money being donated... not spent.

In addition, eliminating capital gains tax on investments would turn a lot of people into more active investors. This in turn should strengthen out national economy and make corporations more liable to their shareholders.

#7 10-03-2005, 04:25 PM

The only thing I don't like about the 5% tax charity idea is the fact that I believe the Government would just find a way to start taxing NP orgainizations.

#8 10-03-2005, 04:27 PM

P.S. - Gryph... what do you do for a living and why aren't there more people like you with logical ideas out here in CA helping me fight the good fight.

etgryphon · #9 10-03-2005, 04:43 PM

[ QUOTE ]
P.S. - Gryph... what do you do for a living and why aren't there more people like you with logical ideas out here in CA helping me fight the good fight.

[/ QUOTE ]

I'm a software engineer, but I'm going back to school to get a Masters in Computational Finance and an MBA...

My hobby is constitutional law. I love politics and am pretty active with what I can...

My company wants to move me out to San Diego. The only problem that I have with CA is the gun laws and earthquakes.

-Gryph

#10 10-03-2005, 06:58 PM

San Diego is nice... lots of hot chics and social activities... cost of living is absurd...

Gun laws in CA... don't ask don't tell.

Earthquakes are better than floods and hurricanes