[speaker001:] does tend to get talked about a lot and one of the things that I like to bring up when taxation comes about or the how they're collected is uh you know government wants to control and and rightfully so in some instances what we do with our money it it does enable them and those who have a good handle on our economic system to encourage investment by giving you a tax break if you invest properly you know things like that I can understand especially for people who are uh young and getting into a knowledge of the economy and and
[speaker002:] but do we get a tax break for correct investments we get taxed on whatever we make on our investments
[speaker001:] well I think I think years ago I think it used to I think the concept was good and I think that that those kind of things are all right
[speaker002:] but we don't have that anymore do we
[speaker001:] I no not uh not near to the extent that it was
[speaker002:] I didn't think so they've even cut you know who can have an IRA
[speaker001:] right
[speaker002:] that was to encourage you to save for the future and to you know save for your retirement and now they've cut out you know the amount that you can have in it and that seems unfair
[speaker001:] right I usually use that as a preface to you know it's okay that the government used to do that or should do that as far as the good incentive good incentive but since they're not doing it as well now I would be more in favor of uh not taxing anything directly in other just do straight purchases in other words if if you want to put a tax on what you buy then revenues can be generated that way
[speaker002:] but they already tax us I mean where we live it's eight almost eight and a half percent tax
[speaker001:] people well right but couldn't they live off of only that or if they took away the other taxes and built in what it took to make up the difference there and the the rationale behind doing that is taxing only purchases if you notice most people tend to spend what they make
[speaker002:] oh and then some and then some
[speaker001:] and then some so then you'd have a tendency to be taxing uh pretty much across the board if you only made twenty to thirty thousand a year you'd probably only spend X amount of that you know a small portion of that on taxable goods you know you still wouldn't tax groceries and you still you know decide whether you want to tax housing
[speaker002:] are you talking about doing away with income tax
[speaker001:] doing away with everything except for yeah all forms all forms of it including
[speaker002:] I don't think well we're already doing a tax on you know a sales tax I don't think that would generate enough money
[speaker001:] well you'd have to up it to whatever fifteen percent
[speaker002:] oh I see what you're saying what do you think of just about a a straight percentage um
[speaker001:] yeah so if you took the money out of one
[speaker002:] off of the income with no deductions and and no no loopholes and and no gimmes and everybody pays say five percent period
[speaker001:] well your problem in there is how do you get I mean you get people that don't report income now so if they don't report income then you wouldn't get that percentage
[speaker002:] well if they're not reporting the income now they're still not paying it so what's the point
[speaker001:] if if well if if it's left in the hands of the grocer he doesn't care whether you know this guy giving him the money you know pays taxes or not but he's going to have to pay that percentage see what I'm saying
[speaker002:] no
[speaker001:] well when a guy comes in to you know he's got a hundred thousand dollars and he buys a hundred dollars worth of groceries
[speaker002:] um-hum
[speaker001:] he pays fifteen percent tax let's say
[speaker002:] right
[speaker001:] and if the poor guy comes in and pays a hundred dollars worth of groceries he pays fifteen percent tax
[speaker002:] right
[speaker001:] so both guys paid it because the grocer was in essence collecting it
[speaker002:] right
[speaker001:] and the hundred thousand dollar guy could not in any way hide what he purchased because the grocer doesn't want to hide it for him whereas the hundred thousand dollar guy could tell the government he only made fifty thousand dollars and it's up to the government to prove him wrong
[speaker002:] oh I see what you're saying but if we had to have an income tax which they're never going to get rid of what about instead of this graduated the more you make the more you pay
[speaker001:] see so I'm saying there's
[speaker002:] what about having a straight across the line income tax just a flat thing and do away with all the deductions I realize all the CPA's and
[speaker001:] right right
[speaker002:] H&R Blocks would be out of of a job but uh
[speaker001:] so you you tax yeah you tax per body and and then if you made more you got to keep more yeah that's a rational way to do it
[speaker002:] yeah I never have understood why they don't do that
[speaker001:] yeah it it does seem
[speaker002:] and no one can explain it to me
[speaker001:] it does seem fair it does take away all their ability to control which you know initially they they had some good ideas but they don't seem to be following them anymore
[speaker002:] no no
[speaker001:] so
[speaker002:] I don't know I I guess there's never a an answer nobody ever asks
[speaker001:] that's true that's true not being an economy major I guess they'd never ask me anyway
[speaker002:] they don't ask me at all
[speaker001:] oh
[speaker002:] I always thought a straight percentage though would make a whole lot more sense because some of the people who make the most they have so many quote deductions by the time they get through with their deductions they don't pay anything
[speaker001:] right
[speaker002:] and I question their I I I just think that they've made it almost a joke all the deductions in the the way you can send