America doesn’t have an income tax system. It has a socially engineered tax system.
Income is revenue minus expenses. The arrogance of politicians allows them to equate business expenses and personal spending and treat them the same.
Politicians make business interest expense and mortgage interest expense deductible, but business interest expense is a cost incurred to create revenue while mortgage interest expense is a cost incurred because someone wants to own instead of rent.
People don’t have children to create revenue, but politicians say, “Deduction!”
Politicians believe in global warming, so solar panels and environmentally approved appliances for personal residences are deductible.
Warren Buffet said the tax system is unfair because he, the employer, can manipulate taxes to a point where he pays a lower rate than his secretary.
Aren’t the governments and the nonprofits unfair? There’s no intention to tax the employers, but the employees are taxed. For-profit employers who run losses aren’t taxed, but their employees are taxed. How is that fair?
The private sector is taxed to subsidize all government employees, so they can pay their taxes. A Montana congressperson who makes $174,000/year, no other income, takes the standard deduction, and has four personal exemptions pays about $38,000 federal and state taxes.
America should just tax profit. Capitalists create profit. No one else does.
Employees aren’t capitalists. They’re human tools who use other tools and resources to produce the results the employers and the customers want.
Just tax the profit. Then, America would have an income tax system.