Tax political campaign contributions?

[Jimmy Higgins]

Approximately a bazillion million dollars are spent in campaigns in the US. I'm wondering whether it is time to start taxing that shit with a sales tax. It can be progressively increased based on the ridiculous amounts of money being donated. Normal sales tax at $1 to $1000, 3x Sales tax $1001 to $10000, 5x Sales tax above $10k.

Money to Super PACs and other more secret groups could be taxed at 10x Sales tax.

 

[Tom Sawyer]

Approximately a bazillion million dollars are spent in campaigns in the US. I'm wondering whether it is time to start taxing that shit with a sales tax. It can be progressively increased based on the ridiculous amounts of money being donated. Normal sales tax at $1 to $1000, 3x Sales tax $1001 to $10000, 5x Sales tax above $10k.

Money to Super PACs and other more secret groups could be taxed at 10x Sales tax.

But if you tax donations to Super PACs, that means that the contributions would be part of the public record. That means you hate freedom. Stop hating freedom.

 

[Loren Pechtel]

What's the justification for taxing it? The only tax that applies to giving money is the estate tax. All other taxes are upon the receipt of money and are based on the reason for the receipt.

 

[Jimmy Higgins]

What's the justification for taxing it?

People donating large amounts of money are paying for a service. It is taxing that service.

 

[Shadowy Man]

What's the justification for taxing it? The only tax that applies to giving money is the estate tax. All other taxes are upon the receipt of money and are based on the reason for the receipt.

This is factually incorrect. Gift Tax: http://en.wikipedia.org/wiki/Gift_tax_in_the_United_States

 

[Loren Pechtel]

What's the justification for taxing it? The only tax that applies to giving money is the estate tax. All other taxes are upon the receipt of money and are based on the reason for the receipt.

This is factually incorrect. Gift Tax: http://en.wikipedia.org/wiki/Gift_tax_in_the_United_States

The estate tax and the gift tax are simply two faces of the same thing. You are not rebutting me.

 

[Jimmy Higgins]

This is factually incorrect. Gift Tax: http://en.wikipedia.org/wiki/Gift_tax_in_the_United_States

The estate tax and the gift tax are simply two faces of the same thing. You are not rebutting me.

Yeah, except one has to do with death and the passing of property to others. Gift tax is about living people. The Gift tax is very similar to political contributions.

 

[Loren Pechtel]

The estate tax and the gift tax are simply two faces of the same thing. You are not rebutting me.

Yeah, except one has to do with death and the passing of property to others. Gift tax is about living people. The Gift tax is very similar to political contributions.

They're the same thing!

You get a certain exemption to the estate tax. You use that exemption up on gifts over the yearly limit. When that exemption is used up you owe tax on any additional transfers, whether alive or dead. It's one tax, not two!

 

[ZiprHead]

Hey, if you can now buy a politician, I don't see why we can't have a sales tax.

 

[Shadowy Man]

This is factually incorrect. Gift Tax: http://en.wikipedia.org/wiki/Gift_tax_in_the_United_States

The estate tax and the gift tax are simply two faces of the same thing. You are not rebutting me.

You said: " The only tax that applies to giving money is the estate tax. All other taxes are upon the receipt of money and are based on the reason for the receipt."

Perhaps I misinterpreted what you said, but this sounded like you were saying that the only tax that applies to giving money is the estate tax and all other taxes are upon the receipt of money. But when someone gifts money to someone else it is the giver who pays the tax and not the receiver. That seems opposite to what you said. Perhaps you could restate what you meant.

 

[jonatha]

Considering the purported purpose of political contributions, it might well make sense to subject them to gift tax.

They are, after all, gifts with no expectation of anything in return

 

[Tom Sawyer]

I think that a good idea would be to tax the contributions heavily and have those tax dollars go into a general fund which can be used by all the candidates.

 

[Jimmy Higgins]

I think that a good idea would be to tax the contributions heavily and have those tax dollars go into a general fund which can be used by all the candidates.

I was going to suggest increased military spending... but that is a good idea too.

- - - Updated - - -

Considering the purported purpose of political contributions, it might well make sense to subject them to gift tax.

They are, after all, gifts with no expectation of anything in return

This is why I suggested a sales tax. This is about paying for a service.

 

[Shadowy Man]

Maybe political contributions should be like loans. If you don't win your political race, you have to pay back the contributions. I wonder what impact that would have... hmm...

 

[Loren Pechtel]

The estate tax and the gift tax are simply two faces of the same thing. You are not rebutting me.

You said: " The only tax that applies to giving money is the estate tax. All other taxes are upon the receipt of money and are based on the reason for the receipt."

Perhaps I misinterpreted what you said, but this sounded like you were saying that the only tax that applies to giving money is the estate tax and all other taxes are upon the receipt of money. But when someone gifts money to someone else it is the giver who pays the tax and not the receiver. That seems opposite to what you said. Perhaps you could restate what you meant.

What you are missing is that I already covered that--the gift tax is just a facet of the estate tax.

 

[bilby]

You said: " The only tax that applies to giving money is the estate tax. All other taxes are upon the receipt of money and are based on the reason for the receipt."

Perhaps I misinterpreted what you said, but this sounded like you were saying that the only tax that applies to giving money is the estate tax and all other taxes are upon the receipt of money. But when someone gifts money to someone else it is the giver who pays the tax and not the receiver. That seems opposite to what you said. Perhaps you could restate what you meant.

What you are missing is that I already covered that--the gift tax is just a facet of the estate tax.

What you are missing is that your saying it doesn't make it so.

Both are part of a wider tax system; and while it is true to say that eliminating one would allow avoidance of the other, that is not sufficient to make them the same tax - that relationship is true of many pairs of taxes in any complex tax system.

You might like to think of things in a certain way; but your preferences are not universal, and they are not more important than the wider reality.

 

[Loren Pechtel]

What you are missing is that I already covered that--the gift tax is just a facet of the estate tax.

What you are missing is that your saying it doesn't make it so.

Both are part of a wider tax system; and while it is true to say that eliminating one would allow avoidance of the other, that is not sufficient to make them the same tax - that relationship is true of many pairs of taxes in any complex tax system.

You might like to think of things in a certain way; but your preferences are not universal, and they are not more important than the wider reality.

They are the same tax!

Lets say you give $20k to someone. The tax-free limit is IIRC $14k at this point, thus $6k is taxable--but do you pay any tax? No. You use up $6k of your exemption on the estate tax. Only if you have already used up the entire exemption do you actually owe any tax. Given this degree of linking how can you insist they are separate taxes?

 

[Canard DuJour]

Or howzabout this : You can donate as much as you like to a political party, tax free ..as long as you donate an equal amount to the most popular opposing party.

?

Not trying to buy favour and subvert democracy, are you? Just want to open the free market of ideas?

No prob then.

 

[bilby]

What you are missing is that your saying it doesn't make it so.

Both are part of a wider tax system; and while it is true to say that eliminating one would allow avoidance of the other, that is not sufficient to make them the same tax - that relationship is true of many pairs of taxes in any complex tax system.

You might like to think of things in a certain way; but your preferences are not universal, and they are not more important than the wider reality.

They are the same tax!

Lets say you give $20k to someone. The tax-free limit is IIRC $14k at this point, thus $6k is taxable--but do you pay any tax? No. You use up $6k of your exemption on the estate tax. Only if you have already used up the entire exemption do you actually owe any tax. Given this degree of linking how can you insist they are separate taxes?

Because they could in principle exist independently.

The existence of deductions does not render two taxes one.

 

[Loren Pechtel]

They are the same tax!

Lets say you give $20k to someone. The tax-free limit is IIRC $14k at this point, thus $6k is taxable--but do you pay any tax? No. You use up $6k of your exemption on the estate tax. Only if you have already used up the entire exemption do you actually owe any tax. Given this degree of linking how can you insist they are separate taxes?

Because they could in principle exist independently.

The existence of deductions does not render two taxes one.

They could be independent. However, since they share the same deduction I see them as simply two facets of the same thing.

Since it's my original statement that the estate tax is the only tax that applies to the giver I think I get to decide if they are one or two by my meaning--you guys are trying to argue a total technicality.