What exactly does it mean? I have even heard it from politicians & technocrats (neo-cons?) in South Asia. So far, what I can gather is that you won’t need an accountant to do your tax. Just say 2% goes to Zakat and that’s it.
Note: This thread is bound to have a discussion on upcoming US tax reforms. But please do share your tax problems/blessings if you don’t live in the US.
The Plan is no more income tax. US govt to instead hike sales tax to 23%.
So you keep all your salary but just pay more for things.
And will never happen in the U.S. as a whole.
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*Originally posted by underthedome: *
And will never happen in the U.S. as a whole.
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all of you guys who are in north america, do you guys also pay 2.5 percent zakat on your savings and gold you own? just curious..
Muslims use zakat as a tax write off?
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*Originally posted by phoenixdesi: *
all of you guys who are in north america, do you guys also pay 2.5 percent zakat on your savings and gold you own? just curious..
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Obviously. Tax is never a replacement for Zakat, as they are totally different.
On to the main topic... simplifying tax code is all good and dandy, but then what will you guys do with all those special interest groups who sneak in their specific tax breaks all the time. Plus, if you simplify it too much, it would ruin the business of many CPA's! Hahaha..
The way I understand the ‘simple tax' philosophy from my Republican friends is that 1) Rich people want to spend money & somehow the income tax doesn’t let them do it 2) When there will be no income tax people have more money to spend and when they will do that, same amount of tax as income tax will be generated but at the same time money will be exchanged thus economy will be better. 3) People will have more right on how to spend their money and not the state 4) no one should be paying taxes for the services they don’t use/need i.e. the rich people.
If any of the pundits here disagree with the above, want to elaborate it more or add anything to it please do so. Once that is done, I will add my criticism. JazakAllah!
phenoixdesi, I pay zakat on all my savings which are not very much and as I am not a rap star (yet) I don’t own any jewelry worth enough to be cleaned through zakat. Zakat is faraz on those who do not have a debt. In the western economics the person who owns 2-3 restaurants or a small startup company to the minimum wager owning a house in ghetto is in debt, so technically zakat is not compulsory on any of ‘em.
Utd, Yes I write off tax on the zakat I pay along with other contributions. It is under Schedule A ‘Gift to Charity’ section. :-P
Well that's what George Herbert Walker Bush called "voodoo economics" .. Rich have got everything already.. what will they spend more money on that will 'invigorate' the economy?
We've seen huge federal help from govenrment to companies who have then went on to slash workforce.. so please spare us the "decreasing taxes will increase employment" lie.