The 2 Biggest Tax Loopholes... the Republicans are Surprisingly SILENT

[Chung Tran]

I would have thought the Republicans would be pushing back hard, but I have not heard anyone complain about these 2 loopholes that rob the Treasury blind.

1. the 2 incomes with children/not married loophole:

guy earns $29,000, his Bitch earns $27,000, she has spit out 4 kids, but they have not married.

she files and claims two, as does he.. they both rake in thousands in earned income credit and child tax credits (plus daycare, possibly).. married they would lose ALL of the thousands in earned income credit!

2. the married to an illegal loophole:

guy earns $70,000, his wife earns $27,000.. 3 children.. but he is an Illegal alien.

for tax purposes, they are not considered to be married, so he files single, she files her own income, claims the 3 children, and rakes in thousands in earned income credit that would otherwise be unavailable to a married couple with that income level.


people assume that the wealthy are working the tax system and getting all "the breaks", but nearly half of US Taxpayers pay no federal income tax, and as the above examples demonstrate, many not only do not pay a dime in tax, but receive money, some of it via THEFT that the system doesn't consider as stealing.


the 3rd biggest Loophole involves the Education credit, and also benefits the working poor, thanks to a tax law interpretation by the Obama Administration that has not been challenged.

[HoeHummer]

Sounds like yous have a problem with your poor people.

[the_real_Barleycorn]

I'm not sure where you've been but it is democrats who are all about paying taxes. Tax law starts in the house and who know who controls that. Also, it is the left wing socialists who think the rich are gaming the system. Now if you, as a left winger, want to propose some fair, workable...never mind, leftists don't want fair.

[Tiny]

Originally Posted by Chung Tran

I would have thought the Republicans would be pushing back hard, but I have not heard anyone complain about these 2 loopholes that rob the Treasury blind.

1. the 2 incomes with children/not married loophole:

guy earns $29,000, his Bitch earns $27,000, she has spit out 4 kids, but they have not married.

she files and claims two, as does he.. they both rake in thousands in earned income credit and child tax credits (plus daycare, possibly).. married they would lose ALL of the thousands in earned income credit!

2. the married to an illegal loophole:

guy earns $70,000, his wife earns $27,000.. 3 children.. but he is an Illegal alien.

for tax purposes, they are not considered to be married, so he files single, she files her own income, claims the 3 children, and rakes in thousands in earned income credit that would otherwise be unavailable to a married couple with that income level.


people assume that the wealthy are working the tax system and getting all "the breaks", but nearly half of US Taxpayers pay no federal income tax, and as the above examples demonstrate, many not only do not pay a dime in tax, but receive money, some of it via THEFT that the system doesn't consider as stealing.


the 3rd biggest Loophole involves the Education credit, and also benefits the working poor, thanks to a tax law interpretation by the Obama Administration that has not been challenged.

Why are Republicans silent? Because they realize that if you leave more money in the private sector, you have a stronger economy and more prosperity for all. Investment and expenditure in the private sector are what cause the economy to grow and people to prosper. Just compare per capita GDP adjusted for purchasing power in the USA, Ireland, Switzerland, Hong Kong and Singapore, which have relatively low government revenues as a % of GDP, to every other country in the world that's not tiny or wallowing in petro dollars. Class warfare means the USA taxes the crap out of people who are well off, but that's no reason not to have low income tax rates on middle class, unmarried people with children.

Yeah, there are a ton of changes in the tax system that should be made to make it fairer and more efficient. But they're not going to happen, and the Republican party realizes perfect is the enemy of good.

[Chung Tran]

Originally Posted by Tiny

Why are Republicans silent? Because they realize that if you leave more money in the private sector, you have a stronger economy and more prosperity for all.

Yeah, there are a ton of changes in the tax system that should be made to make it fairer and more efficient. But they're not going to happen, and the Republican party realizes perfect is the enemy of good.

why can't they happen?

these 2 loopholes allow people to STEAL. plus, they encourage 2 social systems that have historically been seen as societal problems.. unmarried parents and illegal aliens.

IRS was able to reduce tax Identity theft filings by 85% in 3 years, by simply delaying refund disbursements for returns that contained child-related tax credits. I know these loopholes can be shut off if there is any will in Congress.. you are telling me there is none?

[Tiny]

Originally Posted by the_real_Barleycorn

I'm not sure where you've been but it is democrats who are all about paying taxes. Tax law starts in the house and who know who controls that. Also, it is the left wing socialists who think the rich are gaming the system. Now if you, as a left winger, want to propose some fair, workable...never mind, leftists don't want fair.

A large percentage of wealthy leftists game the system. As Leona Helmsley said, taxes are only for the little people.

A case in point is George Soros who benefited mightily from the carried interest loophole and from offshore fund structures that enabled him to lower and delay his tax payments.

[Tiny]

Originally Posted by Chung Tran

why can't they happen?

these 2 loopholes allow people to STEAL. plus, they encourage 2 social systems that have historically been seen as societal problems.. unmarried parents and illegal aliens.

IRS was able to reduce tax Identity theft filings by 85% in 3 years, by simply delaying refund disbursements for returns that contained child-related tax credits. I know these loopholes can be shut off if there is any will in Congress.. you are telling me there is none?

What you're proposing would raise taxes on unmarried, middle class taxpayers with children. There are a lot of voters who fit into that category. Correct, there is no will in Congress. Now if you want to cut taxes on married people with children, or, for those who aren't paying the income tax, give them money, that's very doable.

I suspect you could get Republicans to vote to end the illegal alien loophole, but would the Democrats vote for it?

[Chung Tran]

Originally Posted by Tiny

I suspect you could get Republicans to vote to end the illegal alien loophole, but would the Democrats vote for it?

I think so, because it is a clear violation of the intent of Lawmakers, to allow this to stand as it does. and it obviously unfair to population segments that play by Society's rules.

these folks "game" other things, besides taxes.. like Medicaid. the same scenario above, where the Illegal or Legal Guy earns $70,000, but is not married to his childrens' Mom, she can get Medicaid benefits. I knew a guy in that situation who worked for GM and got superb medical benefits, but.. he would have had to pay a little to get the kids on his plan, so he told his Babies' Mama to get them on Medicaid instead.. this Guy earned over $100,000 a year!

[eccielover]

Tax laws are funny. One man's loophole is on the flip side someone else's penalty.

Until the thousands of pages of tax law are tossed and a more equitable flat tax is applied, you will have winners, losers, and those who know how to play the system.

[friendly fred]

Originally Posted by Chung Tran

I think so, because it is a clear violation of the intent of Lawmakers, to allow this to stand as it does. and it obviously unfair to population segments that play by Society's rules.

these folks "game" other things, besides taxes.. like Medicaid. the same scenario above, where the Illegal or Legal Guy earns $70,000, but is not married to his childrens' Mom, she can get Medicaid benefits. I knew a guy in that situation who worked for GM and got superb medical benefits, but.. he would have had to pay a little to get the kids on his plan, so he told his Babies' Mama to get them on Medicaid instead.. this Guy earned over $100,000 a year!

I agree with all your points on this thread and wish America had more honest people who wouldn't game the system.

Since marriage isn't that meaningful anymore the law should be changed to reflect if people live at the same address and so do the 4 kids - that would unify tax payments to the correct rate.

[HoeHummer]

Would yous propose a different enforcements for fat people, Uncle Han?

[Chung Tran]

Originally Posted by friendly fred

the law should be changed to reflect if people live at the same address and so do the 4 kids - that would unify tax payments to the correct rate.

ding! ding! ding!

this is the key.. right now you even have married people scamming.. say, a Man marries his girlfriend who had 3 kids before.. they know the system, and will not file married, and kill their refunds! instead, the Man will use his old address, his Mom's, his friend's.. somewhere besides his REAL address, when he files.. girlfriend rakes in earned income credit money by filing only her income. refunds go to bank accounts, "nobody" gets checks mailed to their address anymore. except... people who file LATE.. IRS worries that fraud may be involved, so they will ONLY issue a check sent to the address on record. the built-in fraud worry can be extended to other areas.

I am certain a well-devised plan that verifies REAL addresses can be put in place.. Hell, do it like you do Employers, who remit their portion of Social Security taxes, and withholding.. make Doctors, Schools, and Day Care places send in an "address verification" efile, if you will, to IRS, that becomes part of the database, same as the Employer payments and Social Security Numbers.

[eccielover]

Originally Posted by Chung Tran

ding! ding! ding!

this is the key.. right now you even have married people scamming.. say, a Man marries his girlfriend who had 3 kids before.. they know the system, and will not file married, and kill their refunds! instead, the Man will use his old address, his Mom's, his friend's.. somewhere besides his REAL address, when he files.. girlfriend rakes in earned income credit money by filing only her income. refunds go to bank accounts, "nobody" gets checks mailed to their address anymore. except... people who file LATE.. IRS worries that fraud may be involved, so they will ONLY issue a check sent to the address on record. the built-in fraud worry can be extended to other areas.

I am certain a well-devised plan that verifies REAL addresses can be put in place.. Hell, do it like you do Employers, who remit their portion of Social Security taxes, and withholding.. make Doctors, Schools, and Day Care places send in an "address verification" efile, if you will, to IRS, that becomes part of the database, same as the Employer payments and Social Security Numbers.

Again, you are both over thinking and underthinking this at the same time. Why add more overhead to an already bloated system?

You ignore renters and people who just happen to live together. Not everyone under a single roof is a "family" unit.

Taxing by address is one of the most ridiculous proposals I've ever heard for the tax system.

Again, chuck the thousands of existing tax code rather than bloat it even further with a million other intricacies and go with a flat tax.

Any income over $xxx for any individual is taxed at xxx rate.

Many of the welfare systems do indeed take "household" income into account for benefits, but again the definition of "household" is so bloated as to be easily skirted.

[WTF]

If life was fair we wouldn't of had Clinton and Trump on the ballot in 2016...and Asian hookers would charge friendly fred double!

[Tiny]

Chung Tran and Eccielover would make a good team, rooting out problems and figuring out how to fix them respectively. I've got an idea how big companies and special interests can game the system, but hadn't thought about people like some single welfare mothers who apparently are making out like bandits.

Tax simplification as described by eccielover would not only remove many of those opportunities to game the system, but also make life much easier for those of us who spend ridiculous amounts of time complying with the tax laws and regulations. The only real losers would be the special interests, the fraudsters, and the tax attorneys.