LETTER: Tax types often becoming confusingI think there is often some confusion about taxes. When you are talking about taxes, you might explain what kind of taxes you are talking about.
By: John Zilverberg, Highmore
To the Editor:
I think there is often some confusion about taxes. When you are talking about taxes, you might explain what kind of taxes you are talking about.
There is the real estate or property tax that is based on the value of your property and comes due every year, whether you made any profit or not, and could bankrupt you or your business if you didn’t make a profit.
Then there is the net income tax that is based on your profit, so that could never bankrupt you or your business, because if you did not make a profit, you would not be paying any taxes.
When I am talking about raising taxes to balance the budget, I am talking about the net income taxes. Companies that did not make a profit would not have to pay any tax. If they made a profit and distributed that to the stockholders, the stockholders and the executives who took the stocks and big salaries out of the company would have to pay the taxes.
Then there is the inheritance tax that a lot of people would like to eliminate. But what you inherit is free, so it is all profit and you should pay taxes on that as well as on your other profits. Of course, if you inherited property that was mortgaged for all it was worth, you would not have to pay any tax on that.
I would recommend an exception on at least a minimum of the first $100,000 of the inheritance.