Can I not have taxes withheld from my paycheck?

[Phantom Warrior]

jefnvk,

So true.  The truely frustrating part is the fact that all the money I'm giving to things like Social Security I'll never see.  Because Social Security is expected to be tapped out in what...2042?  I don't retire until 2048 or so.  Which is why my retirement planning doesn't factor in one penny from Social Security.

[jefnvk]

SS was my biggest annoyance.  I got all the taxes back at the end of the year, because I didn't make the $6000 or so required to actually pay anything.  However, as a kid going off to college, the few hundred dollars that went to SS that a) I'll probably never see again because of what you mentioned, and b) if I ever do see again, the extra few hundred dollars I put in now will mean nothing to me then, would have been much more helpful in my pocket.

[auschip]

[
1. Most businesses in the country are already equipped to charge sales taxes, as most states have sales taxes.  So, most will have to add X% to the local sales taxes and send it to fed.gov.  Compare that to what we have to do to comply with income tax regulation.  There is a whole industry built up around it.  Collecting a sales tax is cake, by comparison.

Check this out:
http://www.taxfoundation.org/publications/show/1281.html

In 2005, taxpayers will pay roughly $1.2 trillion in federal income taxes. But Americas tax burden is more than just the amount of tax paid. It also includes the cost of complying with federal taxes, including tax planning, paperwork and other hassles caused by tax complexity.

...

In 2005 individuals, businesses and nonprofits will spend an estimated 6 billion hours complying with the federal income tax code, with an estimated compliance cost of over $265.1 billion. This amounts to imposing a 22-cent tax compliance surcharge for every dollar the income tax system collects.

A 22% tax compliance surcharge.  Maybe we won't need to have a 25% national sales tax.  Maybe we'll only really need an 18% rate.

2. I hear ya.  Do the math, however, & it is much more attractive:
http://fairtax.org/real_estate.html

3. More transparent, because you pay it each and every time you make a purchase.  You see it right there where you currently see the sales tax on your receipt.  If it goes up, you see it.  If some lobbyist gets an exclusion on their product/industry, you see it.

Forgot to get back to this topic, sorry about that.

1.  I didn't consider that companies already charge salestax, so that was a good point.  

2.  I looked at the site, and it is predicated on the interest rate decreasing.  While it may drop some, I can't see banks suddenly dropping interest rates (even if they could).  

3.  I see what you mean by transparent, but as I sit here and look at my receipt from yesterday, I noticed it doesn't break it down, but rather it simply lumps it together.  8.25% on the $23.45 bill comes to $25.38 total ($1.93 tax).  Under the new system I would be paying 33.25% and my total bill jumps to $31.25 ($7.80).  

Belaboring the point a bit, the median single family home in the US is $213,000.  To purchase that same home it would cost $283822.50, and essentially you start with a negative equity amount of roughly $70k (depending on your downpayment).

[Phantom Warrior]

Belaboring the point a bit, the median single family home in the US is $213,000.  To purchase that same home it would cost $283822.50, and essentially you start with a negative equity amount of roughly $70k (depending on your downpayment).

My original thread has drifted, but I'm intrigued so I'll chime in.  That is a big chunk of change.  But how many times do you buy a house?  You earn income every year.  If you buy your house and stick with it you will eventually have it paid off and be done with it.  And you will be taking home more money every paycheck as compensation.

[auschip]

Belaboring the point a bit, the median single family home in the US is $213,000.  To purchase that same home it would cost $283822.50, and essentially you start with a negative equity amount of roughly $70k (depending on your downpayment).

My original thread has drifted, but I'm intrigued so I'll chime in.  That is a big chunk of change.  But how many times do you buy a house?  You earn income every year.  If you buy your house and stick with it you will eventually have it paid off and be done with it.  And you will be taking home more money every paycheck as compensation.

The median income in the US is $44,473, and the tax on that comes out to $7,771.  To recoop that additional amount you would need to not pay taxes for nine years (roughly).  However, you will still need to purchase goods, so you have to assume some percentage of your income will go to paying the higher taxes on goods and services (thereby extending the time to break even on the negative equity).  

My apologies for causing the thread drift, but issues like this are interesting to me.  Would you prefer we start a new thread?