How do you define income? If deductions are limited, and I am a businessman, do I no longer have the full ability to deduct expenses? If I am able to deduct expenses, does this include non realized expenses like depreciation? If I cannot deduct depreciation, are capital expenses treated as ordinary expenses? If the capital expense is more than my years income.....
Originally Posted by GasMan
My point is that what seems like a simple a absolutely clear idea, is way more complex.
Are loans considered income? So, if I have an asset that is growing, and instead of selling it, I take a loan, is that income? Is the growth in value in my life insurance policy considered income?
Flat tax proposals are not simple. The fact is that Gov Romney was paying under 15% on his income, because it was not defined as ordinary income. This is not to castigate him, it is to point out, a simple word like income, and flat tax, is not simple.
Here is the question of the day, does anyone think that wealthy people should pay a lower percentage of their income to taxes than middle class people? Don't argue tax brackets, just a simple question. Do you think someone earning 46 million dollars should pay a lower percentage of their income than say someone earning sixty thousand?