[Chugalug] Did you hear? The IRS wants your Bitcoins!

DaWorm daworm at gmail.com
Wed Mar 26 16:51:25 UTC 2014


On Wed, Mar 26, 2014 at 12:23 PM, William Roush <william.roush at roushtech.net
> wrote:

>  *Very* few people that have hundreds of millions of dollars plan to
> spend it all out by the time they die, most of them continue to pass it on
> and reinvest it, the wealth is never put towards taxable items at the rate
> it'll be created. Inflate your example by about a thousand times and we'll
> start talking about the realism of making Fair Tax a progressive tax via
> mental gymnastics and not by observation of how people treat their money.
>
>
Very few people have hundreds of millions of dollars, as well.  And again,
of what possible use is unspent income?  Warren Buffet may be "worth"
billions of dollars, but he doesn't have that money in gold bricks in the
basement of his house.  He buys and creates businesses that in turn help
drive the economy, and in turn generate more income for more people to be
taxed.  Or it is invested in stocks and bonds.  You discount the value of
this type investment.  It helps the economy in ways taxes never could.

Also, with a flat tax, things like tax shelters cease to exist.
 Corporations holding overseas income overseas to avoid taxation cease to
exist.



> You think a government can run on a bunch of "IOUs" to be paid out when
> someone in the family line botches their inheritance?
>
> It's why a flat tax _requires_ such a high rate, is because it _is_
> regressive, there have been much more rigorous studies into the approach
> than making up stories to fit a dialog to promote.
>

Yes, actually, that's all the government does run on.  And they are
printing them hand over fist.  The government is the only entity that can
think in the long term.  The problem is, they don't make long term sound
decisions for fear of the short term results.  The transition period from
income tax to flat or fair tax would indeed be an expensive proposition in
the short term.  Which is why it will probably never happen.

Jeff.
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