posted by jmog

QO's idea is obviously out there, I'd be happy if there was a set/flat percentage once normal deductions for living are taken out (similar to the standard deduction now).

 

Say everyone pays 10% and that's it, period. The very low income would still pay 0 since the standard deduction would drop them to basically zero adjusted income.

I have wanted flat tax for awhile now.  I doubt we ever see it.  Too many businesses rely on a massive tax book and a flat tax would kill them.  

Because my wife is a contractor and they take no tax out of her check, and also because it is not my year to claim my oldest daughter, i get to write a fat check to Uncle Sam. It's in the mail today. 

posted by Fab4Runner

My husband and I file separately due to student loans. 

Cool me too twins 

posted by like_that

I have wanted flat tax for awhile now.  I doubt we ever see it.  Too many businesses rely on a massive tax book and a flat tax would kill them.  

All "flat tax" plans would raise taxes on saving and investment versus the current code which currently gives the middle-class consumption-tax treatment through the various tax expenditures related to saving e.g. 401(K)'s, SEPs, IRA's, etc. 

posted by QuakerOats

Imagine if we all were treated equally and fairly, with no bias, prejudice, or discrimination, and we all just mailed in $5,000 each, and that was it.

Imagine.

The fairest option, besides 0% for all, would be the same percentage per person, not a flat amount.

posted by friendfromlowry

Cool me too twins 

You and your husband file separately? 

posted by ernest_t_bass

You and your husband file separately? 

Yes.

I bet not one person in the whole country voluntarily paid more.

posted by FatHobbit

Because my wife is a contractor and they take no tax out of her check, and also because it is not my year to claim my oldest daughter, i get to write a fat check to Uncle Sam. It's in the mail today. 

I've said it before, EVERYONE should get to pay taxes like an independent contractor.  It's shocking, even if you already kind of knew there's no NOT feeling the pain when you write checks for 40% of your gross income the past quarter.

It's called mental accounting.  Most people just look at their take home and that's their "check" or what they're "paid" (forgetting they never even see the 7.65% of FICA their employer pays).  Very different feeling when you get to hold all that temporarily and then actually cut a big check every quarter.

Yeah, if you're diligent about it, it's not as painful. My old roommate was a freelancer. He uses an app to calculate his taxes owed and it automatically dumps it into a seperate account. Similar to those auto-saving apps, i.e. Qapital.

My wife just starting being a contractor like that in December, so it wasn't bad this year.

I already adjusted my W4 extrapolating her income for 12 months and adjusting my W4 to cover her taxes. With the new tax cuts I still gained money in my paychecks though. 

If I had left it all alone I would have had like $3000 more refund next year than I did this year ($200).

posted by Automatik

Yeah, if you're diligent about it, it's not as painful. 

No, nothing can take the sting out of writing a check that big.

It's not difficult to do, really.  You just make rough estimates every quarter, then do your taxes and make your Q4 payment to the penalty in January or March.  So long as you don't suck at estimating, there's no over or underpayment and no penalties.