All that fancy talk is great but the bottom line is pay your income taxes whether you pay high taxes on your mansion or golf course, if you make a billion, you should pay taxes on it. Why should people pay income tax when they work at a car wash or Burger King and a person who nets a billion dollars be exempt from Federal tax? I don't care what they paid in real estate tax or retail tax. Everybody pays tax on their income. Please explain why a person who nets a billion dollars should pay no Federal tax on that billion.
I don't agree. Income ta is paying tax on your income (obviously). Paying sales tax on your new helicopter isn't the same as paying taxes on your income. Skirting the income tax on the billion dollar profit you made is just theft. They justify it like you did but it's wrong that a McDonald's employee should pay more in income tax that a billionaire. That's just bottom line. Billionaires need to pay income tax on what they earn. Creative accounting is theft.
The underlying question would be... Why?
1) Why is that particular channel of taxation so sought after? If a person finds a way to reduce their federal income tax burden to next to nothing (instead of the 30-something percent they'd pay using a 1040-EZ form with a standard deduction, but still pays taxation (in the millions) toward the common good through 4 or 5 other taxation-based revenue streams, why is that such a sticking point for some people?
I suspect I know why that is...it's because many of those other forms of taxation still give the payer a level of control of what's being done with their money, as where federal income taxes can be used for pet projects and certain forms of spending whether the payer approves of it or not. I think it has to do with the difference in philosophy on "should people have control over what the government does with their money?"
When you pay property taxes, sales taxes, and even to a lesser degree local/state income taxes. You do have some measure of control. For instance, if I don't like what city/state XYZ is doing with their money, I can move to a different city/state. Same applies for property taxes. For sales tax...if I think county A is unwisely using money, I can drive 10 minutes to a different county to make certain purchases in county B.
2) Given that most of us here try to reduce our federal income tax burden as much as possible (through various deductions, etc...), are we all guilty of theft? I certainly tried to find every way I could to maximize my tax refund last year. If lessening ones tax burden is "theft", by that logic, H&R Block and TurboTax are accomplices to theft.
Suggesting that trying to reduce ones own federal income tax burden is theft almost sounds like the inverse of the (somewhat ridiculous) anarcho-capitalist libertarian slogan of "taxation is theft"
But in practical terms, what percentage of a person's money do you think the collective is entitled to?, toss out a number and we can discuss
As noted, while certain wealthy business owners have found a way to report losses to eliminate their federal tax burden on specific fiscal years, nobody's made it through life tax-free (except for perhaps people like the Amish). While you can point to a few "zero federal tax" years for Trump (and people like Trump) when his businesses were going belly-up, in 2017 and 2018, he paid north of a million dollars in federal income taxes each of those years
On on the years like 2020 that people like to pinpoint where he paid zero federal income tax, he paid a combined $8.5 million between state and local taxes. (and another $1.4 million in property taxes on commercial holdings)
(source: Bloomberg)