Understood & agreed to. That is why serious rewriting of tax laws is needed. The list of fair tax deductions would be very short. Such as Medical expenses, minimal business expenses such as would be related to start up or growth/expansion, education expenses, charitable/nonprofit donations & such things.<quoted text>
For the wealthiest Americans, their effective tax rates are at historic lows:
"An "effective" tax rate is what a typical taxpayer actually pays after deductions, exemptions and the like. Itís always lower than the statutory tax rate, sometimes significantly lower."
"...A 2007 study by economists Thomas Piketty and Emmanuel Saez calculated effective tax rates for various income groups.
For people whose income ranked between the top 1 percent and top 0.5 percent, the effective tax rate for individual, corporate, payroll and estate was 34.0 percent in 1960, 36.1 percent in 1970, 37.6 percent in 1980, 31.5 percent in 1990, 35.7 percent in 2000 and 31.3 percent in 2004.
For those earning between the top 0.1 percent and 0.5 percent of the income curve, the numbers were 41.4 percent in 1960, 44.6 percent in 1970, 43.0 percent in 1980, 33.0 percent in 1990, 38.4 percent in 2000 and 33.0 percent in 2004.
For those earning between 0.01 percent and 0.1 percent, the rates were 55.3 percent in 1960, 59.1 percent in 1970, 51.0 percent in 1980, 34.3 percent in 1990, 40.2 percent in 2000 and 34.1 percent in 2004.
Finally, for those in the top 0.01 percent of the income distribution, the effective tax rate was 71.4 percent in 1960, 74.6 percent in 1970, 59.3 percent in 1980, 35.4 percent in 1990, 40.8 percent in 2000 and 34.7 percent in 2004."
BUT, since in general,'our' representatives can be & have been bought, the chance of changes would be slim.
I once worked for a family owned HVAC company. The 'family' bought about 60 acres outside of town & built homes for many of them. Then deducted the heating & air cost of each of them under the pretext of company 'research' for the business that they are in. That could be true in some cases but in this case, the loose parameters of the law allowed them to save 10's & 10's of thousands of dollars EACH for their homes that they could afford.
IF someone has a boat or airplane that is used once or twice a year for true business but they seem to write the whole thing off....WRONG!
The examples go on & on.
There are countless like examples that if seriously addressed, would balance the tax load. I wish it was so. Good luck!