From: Dehede011@aol.com
Date: Mon Nov 11 2002 - 16:56:23 MST
In a message dated 11/11/2002 4:58:01 PM Central Standard Time,
maxmcorp@worldonline.dk writes: Companies can buy cars withour taxes. The tax
system is totally convoluted here as the politicians are trying to have
millimeter precision. Which of course have the effect that the companies with
the best accountants pay the least in taxes.
Yes Max,
I am a retired engineer that decided to return to school to study tax
accounting. I know of no teacher in that field that seems to respect the tax
system. After all politicians have sold tax breaks for years in exchange for
campaign donations or to gain favor with certain voting blocks.
For example, I live in the Chicago area. A prominent congressman in
the northwest side of Chicago had a large group of well paid skilled
tradesmen and government workers in his area. The group needed investments
to shelter part of their income from taxes. He wrote into our tax law a
proviso that allowed the target group to create a paper loss against rental
property and then to deduct that paper loss from their regular income.
You say you take care of the elderly. We pay a specific 15% (7.5%
personally and 7.5% by our employer) tax to provide for what amounts to an
old age pension. If you take the 15% contribution we and our employers make
and then calculate what we would have at retirement age, given a moderate
interest rate, it is easy to see that the tax we pay returns very poorly when
we retire. Not only that but we are constantly pressured by the politicians
that if we don't vote for them we will lose all or part of our income.
Needless to say one of our biggest political arguments is over
allowing each person to have a retirement account that is strictly ours using
the money, or part of it, that we now put in the government system. As you
may guess certain politicians would rather face death than allow us to escape
from under their thumbs.
Ron h.
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