Sunday, November 26, 2017

ONCE MORE ON TAXES

    Recently I have done two posts on income tax. One post was a on a tactic used by people to evade tax by putting money in another country. The last post was on the pathetic performance of the call center used by the tax department.
    So after my challenge  of  dealing with capital gains I've been thinking about what causes tax systems to become so complicated.
    Too many times whiners get to the politicians and request changes to the tax system that would benefit them. Politicians see this a  way of getting votes when they need them. Politicians also think that if they meddle with the tax system, they can "improve" the economy.
    Then the government always has ideas to give us a good deal. In Canada they set up something called the Registered Retirement Savings Plan. The idea was to let people start a savings deposit and not have to pay income tax on it until they take the funds out. You would not be able to take any funds  out until you reach retirement unless you wanted to pay tax on it. The idea was that when you retire your tax rate would be lower and in this way save money. So try keeping track of this account. There was a maximum you could deposit. There's a minimum you could take out at the end.
   The government has all kinds of economists and accountants who design tax systems that at the same time benefit people and bring in needed revenue for the country.
    I could bore you with other examples.
   So why not tax everybody on a standard rate. There would be different rates for income level but that's all.  No exemptions. No write offs. No sneaking money off to a foreign country.
   I'm willing to bet a nickel that if everybody was taxed the same and did not have loop holes that the tax rate would be lower. Wouldn't that make everybody happy! Or is this just too simple to fly?


    Well it was a good dream anyway.


   

24 comments:

  1. those things do become a headache to understand sometimes

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    1. I always thought they were rip off.

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  2. I have no idea what would make a fairer tax system. I just know that the system is lopsided against single people with no dependents or write offs. It's the same for these people when they wish to travel as they have to pay for single supplement. My guess is you are now transferring funds from RRSP to RRIF and I'm sure there are all kinds of rules for that. I have that joy to experience in future. Best of luck with it all.

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    1. One more yea and I'm finish with the rif. It was a complete rip off.

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  3. Oh my gosh! You guys up north have the same problem as us? It's all so complicated that I think it's just a way to keep tax accountants in business.

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    Replies
    1. The systems may be somewhat different but they're all a pain in the butt.

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  4. There are many millionaires not paying taxes. I hear you, brother!

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    Replies
    1. There's something our politicians don't get.

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  5. Replies
    1. Too many hoops to jump through.

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  6. I don't understand taxes at all. I pay them and file an income tax return in January, every year. I'll be doing it until I die and have never figured out what might be a better system. I think it's better in Canada than it is in the US, but I'm just not sure. I have a retirement annuity that gives me money every month, but at the end of the year I pay taxes on it over a certain amount. Since it's not much money, the taxes aren't very much either. :-)

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    1. We may be different but it's still complicated.

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  7. It's ridiculous how complicated taxes have become. There's no reason that doing a tax return should be too difficult for the common person.

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    1. Completely agree. It should be simpler so that we have a better idea of what's going on.

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  8. Too many loopholes, unfortunately, and we'll never be rid of them.

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    1. I guess we'll have to be satisfied by just complaining about things.

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  9. I found this post so taxing that I am going to see a taxidermist in a taxi. I suppose I will get stuffed.

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    1. Let me see now. The taxidermist is going to skin you alive! Isn't that what the politicians are doing.

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  10. I have no idea what the answer is, but I think you've identified the problem all right!

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    1. One thing is that it won't be simple as I suggested in my post.

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  11. It is simple and a great idea. But lawyers and politicians get paid to make things complicated.

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  12. Simplicity if often the best way to go. I'm all for a nice and simple tax system without all the nonsense we have now.

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  13. Too complicated to make it simple. Somebody benefits and its usually not the average person.

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