I think taxes should be based on a 5-year rolling average, to ease the burden for people who have high income only once in their life. Winning the lottery or patenting an invention that makes you rich is the American dream. Let’s tax high earners but show some lenience for folks who have a once in a lifetime windfall.
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- 11 days
A rolling 5 year average would mean you’d be taxed overly heavily for years after a windfall.
Given that winning the lotto is often financially disasterous, getting taxed heavily after you’ve already blown the cash could cripple people at their weakest point. Making the lottery more appealing is also a net loss to society.
It opens another potential avenue for tax avoidance schemes to game.
Getting rich quick almost always requires doing something awful. If it just required hardwork or smarts, plenty people got that. We should absolutely not encourage people to aim for once in a lifetime “get rich quick” payoffs.
- dumples@piefed.socialEnglish10 days
Doing the median instead of the mean would solve that problem. The post tax wouldn’t be as large then
- workerONE@lemmy.worldEnglish11 days
You’d be in a lower tax bracket for the year that you won. If it bumped up your tax bracket the following few years, it would still be beneficial because you’d have saved a lot the first year. I don’t know though, this isn’t really an idea about finance or taxes, I just don’t think it’s right that someone who makes a million once gets taxed the same as someone who makes a million every year for 40 years.
- 11 days
still be beneficial because you’d have saved a lot the first year
You’d be taxed less when you already have a lot, but it’s common for people to blow a windfall and end up much worse off, so being taxed more heavily years later could be really devasting for many.
just don’t think it’s right
I can understand wanting to see some lucky shmuck maximize their winnings. But i think it would seem almost cruel to adjust for this one rare situation when so many more significant financial injustices exist.
- 11 days
They don’t get taxed the same. The person making that money for 40 years is paying 40 times as much.
11 daysLottery winnings in Canada are tax free. Only the earnings from investing it is taxed according to standard laws. It makes a lot of sense because the lottery itself is a form of taxation. The government already got their cut from the tickets purchased by everyone.
In the US you pay the players tax, then you get taxed on the winnings, then you get taxed on income earned from investments.
Meanwhile American billionaires pay next to nothing. What an uncivilized country.
- jello@programming.devEnglish11 days
It shouldn’t matter how complicated they are because the government should just bill me.
They should know how much I owe and just tell me
- A_Very_Big_Fan@lemmy.worldEnglish11 days
They should know how much I owe
Oh, they do. If you get the amount wrong, they’ll demonstrate it real quick.
- ltxrtquq@lemmy.mlEnglish11 days
I for one am looking forward to those people that get lucky once having much higher tax rates for years afterwards, instead of just paying once up front. There’s no way that’ll have negative consequences and leave people with hard feelings about the whole thing.
- workerONE@lemmy.worldEnglish11 days
If you have a lower tax rate on a million and a higher tax rate on years where you earn, say $20,000 you keep a lot more than if you have a higher tax rate on the million and lower on the years you earn $20,000
- ltxrtquq@lemmy.mlEnglish11 days
And people with sudden windfalls of cash, like from winning the lottery, are famously good at math and make wonderful financial decisions.
- 11 days
Upvote because the opinion is unpopular. And I disagree.
If you haven’t noticed why the world is shitty right now, look up and learn about what 1% are doing with their money and wealth.
Tax really isn’t the issue here, tax is only significant to you because of wage theft. If the rich weren’t hoarding wealth and people had adequate income, you would be earning a lot more and the tax you pay you’d care less about. Unless you’re one of them greedy treasure dragons
- ruuster13@lemmy.zipEnglish11 days
Winning the lottery is not the American dream. Stop playing if you want to win.
- CameronDev@programming.devEnglish11 days
The top end high earners will just restructure their pay so that they get paid a big bonus once a decade or longer.
- workerONE@lemmy.worldEnglish11 days
But similarly if you earn a lot in one year you could restructure it to spread it across several years. I just don’t think you should have to do that.
- CameronDev@programming.devEnglish11 days
I believe the Australian tax code already allows that to some degree, its never applied to me though. I think its meant for sports people, who will earn lots in 5-10 years, but then not earn anything after that.
- deadbeef79000@lemmy.nzEnglish11 days
Rich people already pay less tax (through shenanigans). The source of the wealth is irrelevant.
- Fallibilist@feddit.ukEnglish11 days
Top 1% in the US pays 40% of all income tax and top 10% pays 70% while the bottom 50% pays 3.3%
- 11 days
The bottom 50% holds 2.3% of the wealth. So if your 3.3% is correct then that would say they are paying at least 43% to much.
We shouldn’t be taxing basic necessities, we should be taxing things that accrue wealth.
If someone owns a shabby house and their income only makes ends meet they should be paying nothing in taxes.
If you want those people to pay more taxes, the wealth needs to be spread to those groups so that wealth can be taxed.
- Fallibilist@feddit.ukEnglish11 days
Different argument. The implicit narrative here is that the rich don’t pay taxes when in reality they pay almost all the taxes. If you want them to pay even more then that’s fair but the reality is that most people don’t have the faintest clue what the actual numbers are to begin with.
- 10 days
It’s only a different argument because you want it to be. You’re selectively choosing which percentages you want in the argument, and which ones not. I’m not that versed in the different logical fallacies, but I guess this is a straw man fallacy? Atleast, that’s one of the strategies I get for this fallacy; oversimplifying an argument, and then attacking this argument.
- 11 days
How much is that in percentages of their income, disregarding artificially deflated incomes of the rich?
- 11 days
Your question is tied to the idea that their contribution is only contrived of their income taxes, and ignores the fact that 2 people working the same hours contributing the same amount don’t receive the same income.
If you want equal contributions from all income taxes them you would have to have equal pay for all jobs.
“But my job contributes more to society”. No it doesn’t.
The doctor needs a roof just like the roofer needs a colonoscopy.
- abc@suppo.fiEnglish10 days
“But my job contributes more to society”. No it doesn’t.
It literally, mathematically, does if their wage is higher. Even if there were no tax progression, they pay more taxes, which the society uses.
- 11 days
Because the bottom 50% couldn’t pay 40% of all income tax, they’d have a negative net income. That’s why tax brackets exist, once your basic needs are met you can contribute more to society as a whole. It sucks to pay more if you’re earning above median, but it’s the cost of living in a society.
- 10 days
- Tollana1234567@lemmy.todayEnglish11 days
only for loterry winners, get rich quick schemes involve other things besides lotteries.
- paultimate14@lemmy.worldEnglish10 days
Winning the lottery? Honestly we should be trying to find ways to DISCOURAGE people from playing if anything.
An invention that makes you rich? If it is a physical good you will probably not see significant net income for a couple year anyways as you need to establish the supply chain, the distribution chain, the marketing, etc. For intellectual property you could maybe make an argument.
Inheritance? Heck no, it shod.be taxed more heavily. That encourages wealthy people to start giving their wealth to their children BEFORE they die, spreading it out over years. Which means they can spend it a bit sooner.
- HexesofVexes@lemmy.worldEnglish11 days
Definitely unpopular. The trouble is, why not just leave the country the year of the windfall?
By the time the heavier tax is due, you’re nowhere to be found.
- bstix@feddit.dkEnglish11 days
Companies do it, so why not.
Where I live, we do have the option to register a longer tax form for this. It’s mostly used by farmers who are not really businesses, but also not salaried. Most of their income comes from “secondary income”, such as sales. It gives private persons the option to deduct expenses from their secondary income and to postpone the taxes over 3 years, so they can utilize losses from one year in the next or hold back some taxable income for potential future losses. Just like businesses, except businesses can postpone taxes for more years and have more deductible costs.
Specifically for lottery winnings, these are “tax free”, so it doesn’t fuck people’s regular income statements. The lottery instead pays a tax based on all their payouts, so the tax man still gets his share, but it makes no difference to the individual winners. Much easier to handle for everyone. You win a million, you get a million. That it cost the lottery 1.2 million to pay out is irrelevant for the players.
- 11 days
Lottery isn’t taxed in Canada.
And even if it was, that’s good.
Anyone who gets rich should pay more taxes. Period. The richer, the more taxes you pay. That’s it.
Give back to the society that allowed you to get rich quick.
- workerONE@lemmy.worldEnglish11 days
So if someone earns a million dollars once in their life, that million should be taxed at the same rate as a person who earns a million dollars every year of their life? I disagree
- ltxrtquq@lemmy.mlEnglish11 days
Good for you, I’m glad you aleady recognize your opinion is unpopular. Maybe you’d be happier with a wealth tax instead of an income tax, where they look at the grand total of everything you own instead of what you brought in recently.
- 11 days
Yes. And that’s normally why jackpots in the US are usually bigger. To account for the taxes.
