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Old 05-06-2008, 05:39 PM   #31
pshrynk
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I find it odd that in a thread discussing Tax Refunds, Big Brother, is watching (that is, Google)! Gotta be more careful....

See highlighted area of attachment.
That's just creepy.
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Old 05-06-2008, 05:41 PM   #32
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That's just creepy.
That's just intelligent parsing and searching. Google Ads are always based on the text on the page... They are supposed to be "targeted".

BOb
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Old 05-07-2008, 08:11 AM   #33
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Run NoScript with Firefox and you won't see any of that pesky Big Brother stuff.
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Old 05-07-2008, 08:48 AM   #34
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In the U.S., you're taxed (primarily) according to the income you receive. Some people continue to get paid by their employer when they are out sick, so they still pay tax on "sick leave" time. If you do not get paid during sick leave, you pay no tax on that time. (Whether you get paid or not depends on the job.)
If you have a progressive income tax then if you get sick and get less money then if the total amount you earn that year is reduced then the tax you should pay is reduced in a non linear way. That means that an employer can never exactly deduct the correct amount of money.

So if in the UK they do not have tax returns or tax payments then the tax system must be much simpler than in most countries and the tax cannot be progressive.
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Old 05-07-2008, 09:49 AM   #35
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That means that an employer can never exactly deduct the correct amount of money.
Which is why it is considered an estimate, and at the end of the year you fill out forms that indicate your actual tax liability, and either pay more or get your refund. It's really just a way for the government to get the money up front, then allow for a correction later. Yes, they could just wait and get your money later, but as many people in the U.S. have trouble saving their money reliably, the govt figures this way they are more likely to get the money they are owed on-time (instead of jailing 80% of the country for non-payment of taxes every April 16th).

Sure, it's a complicated system. But we're a complicated country.
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Old 05-07-2008, 10:17 AM   #36
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Which is why it is considered an estimate, and at the end of the year you fill out forms that indicate your actual tax liability, and either pay more or get your refund.
Yes, I thought it was an estaimate in nearly all countries so I am curious about how it works in the UK since HarryT's claim is:
Quote:
Why does one receive a "tax refund"? The way that the British tax system works is that, unless you run your own business, or something like that, income tax is simply deducated automatically from your salary by your employer, so you automatically pay the right amount of tax.
Is the tax not progressive in the UK?
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Old 05-07-2008, 11:29 AM   #37
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I could explain - but it would take an age - so here's a link to the experts ..
http://www.hmrc.gov.uk/incometax/basics.htm
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Old 05-07-2008, 11:59 AM   #38
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The only problem with the "Fair tax" is that it is not fair. The only problem with a national sales tax is that it wouldn't be long before they needed more money to give away to some special group and would start income taxes again (temporarily, of course but it would become permanent). Just my cynical opinion of course.
That's why the FairTax proposal includes a Constitutional Amendment to repeal the Amendment that allowed income taxes in the first place (they were originally prohibited by the Constitution). At the time, there was a proposal that the income tax be capped at 6% (I think it was), but it didn't pass because "everyone" agreed the rate would never go that high.

If they need more money under the FairTax plan, they have to raise the rate, but that would be quite visible to the public (very few are so out of it that they don't notice their prices at the register jumping) so it would have an automatic pressure to lower it again. That's the idea, anyway. The explanation on their site is, of course, much more detailed.
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Old 05-07-2008, 12:08 PM   #39
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If they need more money under the FairTax plan, they have to raise the rate, but that would be quite visible to the public (very few are so out of it that they don't notice their prices at the register jumping) so it would have an automatic pressure to lower it again. That's the idea, anyway. The explanation on their site is, of course, much more detailed.
I think there is a provision also that changing the rate would require a 2/3 majority or state ratification... similar to adding an amendment. So, changing the rate would not be simple.

I think most people that say the Fair Tax isn't fair haven't spent the time reading about it, understanding it and reading the FAQs. Every problem I could think about it was clearly explained with sensible information rather than hyperbole. I only have 1 question that the site didn't answer.

BOb
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Old 05-07-2008, 12:13 PM   #40
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I don't think it's necessarily perfect, but it's several big, giant steps in the right direction.

Out of curiosity, what was that one question?
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Old 05-07-2008, 12:19 PM   #41
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I don't think it's necessarily perfect, but it's several big, giant steps in the right direction.

Out of curiosity, what was that one question?
I believe the tax is levied on all "new" goods and services. I do some consulting (custom programming) on the side. I currently don't charge tax on my rate. I think this would require me to. I want to know if that is the case, and what type of records I need to keep and procedures to follow.

BOb
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Old 05-07-2008, 12:24 PM   #42
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That's a good question. And I can certainly see that they haven't answered it.

I suppose if you only sold used consulting ....
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Old 05-07-2008, 12:26 PM   #43
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That's a good question. And I can certainly see that they haven't answered it.

I suppose if you only sold used consulting ....
But, wouldn't that mean I would have to buy consulting first, then resell it?

BOb
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Old 05-07-2008, 12:34 PM   #44
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But, wouldn't that mean I would have to buy consulting first, then resell it?

BOb
If one was to talk to oneself , would that get around it ?
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Old 05-07-2008, 12:37 PM   #45
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I'm thinking I'd have to start doing psychanalysis again, rather than CBT, since the Freudian shibbit is all so used...
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