Post # 640 A TAXING DEDUCTION [editorial]

There are some occasions where the solution to a presenting problem, or, alternatively, the wisest choice in an empirical dilemma, would appear to be discernably apparent, despite one’s lack of the normally required expertise in the relevant subject. We would candidly disclaim any expertise or experience regarding the arcane subject of taxes and governmental revenue-raising, but by simple deduction [pardon the pun], do envision a useful solution to the Nation’s existing conundrum in which, inequitably, billionaires pay less taxes than do bakers or shoemakers. Yet, indisputably, however, it would seem just, that everyone pays his fair share of government support.

This problem, as we see it, as it happens, is a readily apparent one. By the clear terms and legislative intent of our Tax Code, the amount of taxes payable varies with the citizen’s net [taxable] income. The higher the salary or the net profit, the higher the rate and the resultant tax.  The U.S. Tax Code thus expresses the legislative intention to achieve equity and fairness by virtue of a graduated rate, viz., you earn more, you pay more, to support the operations of government. How then can it be empirically and inequitably possible, that, reportedly, America’s millionaires and billionaires pay less income tax than bus drivers and letter carriers? The answer is deceptively simple and uncomplicated; but first, in aid of its understanding, we would first offer a contextually necessary comment on the nuanced financial life of the very richest citizens in America.

The very rich, by definition, own immense asset portfolios and, factually, do not live on earned income. They borrow money for their needs and nuanced lifestyles, by way of loans taken against their impressive assets, and permissibly take the interest paid on such loans as tax deductions. The maintained assets, not being sold, [for profit or loss] are, accordingly, not relevant to the present tax code; which exclusively deals with earned income or gains and losses on capital asset sale or transfer.

In the furtherance of equity and moral fairness, we would suggest that the identified problem can properly and effectively be resolved by a categoric addition to the present sole criteria or basis [viz., income or loss] upon which taxes are calculated and payable. We would suggest that the presently defined taxable incident be enlarged and adjusted, to include taxes payable, calculated and based upon the determination of value of stagnant i.e., longtime held assets,[ or their[ tactical] replacements] held for a specified period of years, by the super-wealthy. We are confident that such a change can easily be construed, by amendment to the relevant provisions of the Tax Code.

In the interim, there continues to be manifest inequity and injustice in the persistence of Congress in the continued imposition of a substantial tax burden on the more modest earnings of the middle and working classes for the support of governmental operations, while simultaneously, permitting the mega-wealthy category of Americans [who obtained their unbounded success, as citizens of the Nation] to eternally be exempt from their moral and patriotic obligation to pay its equitable tax share.  

-p.

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plinyblogcom

Retired from the practice of law'; former Editor in Chief of Law Review; Phi Beta Kappa; Poet. Literature Student and enthusiast.

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