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Politics : Formerly About Advanced Micro Devices
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To: American Spirit who wrote (180704)1/16/2004 12:57:58 PM
From: i-node  Read Replies (4) of 1572409
 
>>>>>>>>Ever heard of FICA and all those things? They get taken out up front for working people. Wealthy people can avoid all that by self-incorporating, then writing off all sorts of things including travel, entertainment, etc. That is the fundamental unfairness of it all. When Bush took away the estate taxes for even multi billionaires he proved right thre who he was really serving.

As usual, you haven't a clue what you're talking about.

FICA is NOT a "redistribution of wealth from the poor to the wealthy" as I pointed out to you yesterday. It is a redistribution from the young to the aged.

The deduction of travel and entertainment has been heavily limited since 1986, when Congress enacted Reagan's tax reform (note that it was REAGAN who eliminated the T&E loopholes). Furthermore, the term "self-incorporating" is meaningless. A wealthy person can form a corporation just as a middle class person, but neither is "self-incorporating" (a pretty meaningless term, actually).

A closely-held corporation cannot, however, avoid the paying of salaries to its wealthy (or middle-class) owner; thus the wealthy have to pay their shares of SS and MC taxes.

Other tax reform under Reagan eliminated the wealthy's use of PALs (passive activity losses) to escape taxation (Section 469). Also under Reagan the code sections 1300 et.seq., were rewritten to eliminate the use of the S-Corporation as a tax avoidance vehicle for the wealthy.
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