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Re:Taxation of Carried Interest by imgabe on Sunday June 10, 2018 @07:26AM (#17277616)
I'd rather go in the opposite direction. Tax all ordinary income as corporations get taxed. Corporation only pay taxes on their profits, not on the expenses necessary to keep them alive, so why not give the same deal for people?

Yes, it would make people's taxes more complicated, but also much lower. Software like Mint and Personal Capital already make it easy to track expenses. Although they might not be accessible to everyone, such as people who are unbanked, but in that case they're probably not making enough to be taxed in the first place.

Re:Taxation of Carried Interest by yk on Sunday June 10, 2018 @10:13AM (#17278195)
Two problems, first the tax system needs to raise a certain amount, just to cover government expenses. So putting forward a proposal of lowering taxes should always be accompanied by a proposal of how to cover the shortfall.

Second, I would actually argue that everybody being unhappy with the tax system is an expression of the too complicated tax system. The problem is, that everybody has the feeling that their neighbor is paying less than their fair share, because the neighbor has found the one weird trick to avoid taxes. So I would actually argue that the opposite is the way forward, radically simplify the tax system, say you get some tax free minimal income and everything above is taxed with 50%. Then people would at least have the assurance that they understand how taxation works, and I would assume are quite a bit happier paying taxes. (Well, nobody likes to pay taxes, but at least compared to now.)

Re:Taxation of Carried Interest by contravariant on Sunday June 10, 2018 @07:46AM (#17277662)
Usually you want to use income taxes to discourage particularly high wages, if you take away expenses then this effect becomes less strong, which could lead to more inequality.

Taxing money at the point where it leaves the 'corporate' sphere and enters the 'private' sphere is also a fairly simple way of ensuring there are no loopholes. This is also why tax on capital gains is necessary.

Re:Taxation of Carried Interest by maxerickson on Sunday June 10, 2018 @07:58AM (#17277695)
Progressive tax schemes more or less do this.

Deductions take them in the other direction, giving people with higher bracket income a larger benefit than people in lower tax brackets. Of course they are still paying more tax, but deducting $30,000 of mortgage interest from the 39.6% bracket is quite a bigger tax benefit than deducting $5,000 of mortgage interest from the 20% bracket.

Re:Taxation of Carried Interest by madeofpalk on Sunday June 10, 2018 @09:18AM (#17277971)
Isn't this what we already do? For individuals, our income is more or less profits, which is what we're taxed on. You can claim deductions against your income for the expenses your occurred while getting that income.
Re:Taxation of Carried Interest by chii on Sunday June 10, 2018 @09:38AM (#17278051)
But for a company, they can claim taxes on expenses such as rent, but for an individual, they couldn't.
Re:Taxation of Carried Interest by madeofpalk on Sunday June 10, 2018 @09:48AM (#17278091)
Well rent isn't an expense directly occurred while earning income. It isn't a cost of doing business.
Re:Taxation of Carried Interest by imgabe on Sunday June 10, 2018 @10:35AM (#17278297)
It's hard to do any business when you're homeless. Likewise you can't do any business while you're starving.

A company's rent for their office space is considered a business expense. That's what I'm proposing for individuals. Each person is an individual "business" selling their services on the open market. Every expense that is necessary for them to be able to do that should be deductible.