Just finished my taxes for 2010. What a stupid, needlessly-complicated process.
And, according the IRS, fewer people are actually paying their fair share these days:
For tax year 2010, roughly 45% of households, or about 69 million, will end up owing nothing in federal income tax, according to estimates by the nonpartisan Tax Policy Center. Some in that group will even end up getting paid money from the federal government.
Which means that the other 55% of us are carrying the almost other half of US households. Is it any wonder they overwhelmingly vote for new government handouts and higher taxes — because they don’t have to pay for ‘em. You can count our household in that 55% who do pay income taxes.
You’re welcome.
Of course we didn’t pay quite as much in income tax as the Obamas, who paid approximately $453,770 in federal taxes, about a quarter of their $1.7 million income last year (most of it coming from the three books written by Obama Bill Ayers). To their credit, the Obama’s did make significant charitable contributions ($245,075), compared to the much-more-thrifty Vice President, who only donated $5K on $379,178 in earnings.
Charles Murray at the Wall Street Journal has the best Tax Day article of the day on the unfair tax burden placed on the top income earners in our country:
America is supposed to be a democracy in which we’re all in it together. Part of that ethos, which has been so essential to the country in times of crisis, is a common understanding that we all pay a share of the costs. Taxes are an essential ingredient in the civic glue that binds us together.
Our democracy is corrupted when some voters think that they won’t have to pay for the benefits their representatives offer them. It is corrupted when some voters see themselves as victims of exploitation by their fellow citizens.
By both standards, American democracy is in trouble. We have the worst of both worlds. The rhetoric of the president tells the public that the rich are not paying their fair share, undermining the common understanding from the bottom up. Meanwhile, the IRS recently released new numbers on who pays how much taxes, and those numbers tell the people at the top that they’re being exploited.
Let’s start with the rich, whom I define as families in the top 1% of income among those who filed tax returns. In 2007, the year with the most recent tax data, they had family incomes of $410,000 or more. They paid 40% of all the personal income taxes collected.
Yes, you read it right: 1% of American families paid 40% of America’s personal taxes.
[snip]
My point is not that the rich are being bled dry. The taxes paid by families in the top 1% amounted to 22% of their adjusted gross income, not a confiscatory rate. The issue is that it is inherently problematic to have a democracy in which a third of filers pay no personal income tax at all (another datum from the IRS), and the entire bottom half of filers, meaning those with adjusted gross incomes below $33,000, have an average tax rate of just 3%.
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Oh, but it gets much worse than that. How many Americans view April 15th as pay day, not pay taxes day?
Let me give you a clue:
Let’s say you are a married couple, jointly earning $5,000/month and you have three kids.
Annual Income:
$60,000/yr.
minus
standard deduction – $10,700
personal deductions – $18,500 ($3,700 times 5, couple plus 3 kids)
AGI – $30,800
Taxes @ 15% rate = $4,620.
Earned Income Tax Credit for married with 3 kids = $5,666.00
Taxes owed? $1,046.00 out of a $60,000/yr income
Now, using same family demographics, drop that income to $40K/yr
$40,000 minus $10,700 standard deduction minus $18,500 personal deductions for an AGI $10,800.
Taxes on $10,800 are $1,080.00.
Earned income tax credit $5,666 minus the $1,080 taxes owed.
Refund check will be sent for $4,586.00
Not only does that family not pay ANY taxes, they will actually receive a refund for over 10% of their annual income.
But…………………………………….
if you retire early, say at 55, and you want to use your IRA to supplement your income and you have not reached the age of 59 1/2, you will be taxed a non-refundable 10% for every dime you use from your IRA, over and above your annual tax rate. If you are a senior, yet your spouse works, your spouse’s income will be added to your Social Security and you will be taxes at whatever your AGI is after deductions, making your Social Security taxable.
It is not just the rich getting soaked. So while Obama runs his mouth about the “middle class” his proposals do nothing to relieve the tax burden on the middle class. Also, he wants to increase the tax rate on anyone making over $200K/yr. But what he doesn’t tell America is that he also wants to basically abolish the married credit, with it being over $200K for singles but also for marrieds earning over $250K/yr.
Alright, if I’m wrong I may eat a turd sandwich for this but, raising taxes or providing loop holes for people is just BS IMHO.
Those that ‘earn’ income should be taxed at a given and steady rate. Allowances should be made for limited, specific reasons such as number of children.
Raising or lowering the taxes is not the real problem in America, the real problem is the wiener jerks that happen to be appointed to office. They win the largest number of votes (whether real or created) and they feel the sensation of narcissism i.e. they lose touch with reality.
But, most importantly, it is the government of this country that needs to be kept in check. This country started out by our very intelligent forefathers with the specific intent that the people shall control the government. Most unfortunately, the government has pushed (with increasing success), to insure that the leaders of this country are the ones to control the people.
I strongly suspect they unwittingly are calling for a revolution.
No skin in the game of shirts and skins.
I had a [healthy] discussion recently with a man who supports the “Fair” tax. It seems to me to be a convoluted mess of sales taxes, tax credits, and exemptions. I told him I supported a “flat” tax and he almost went ballistic. He said “But what about the poor?” And this guy claimed to be a conservative.
What about the poor? Well, IMHO, they are already punishing themselves for their choices made and want to spread that punishment to those who made wiser choices. Those who finished school, worked to get a higher education, did not have children out of wedlock, or more children than they could afford, did not do drugs or abuse alcohol, those are the producers who have taken the steps to make sure that their earning ability is as great as it can possibly be. They should not be punished to pay for those who dropped out of school because they already had a couple of kids, stuck needles in their arms or lived in a marijane smoked filled room, and basically took the easy way out knowing that they would be provided a “safety net” by the producers.
I have said for a long time that if you test positive for drug, alcohol or cigarette use, you should not be eligible for any kind of welfare. Why should you be allowed to spend money on Marlboroughs when others are busting their asses to give you the money to pay for them?
A flat tax. Say 5%. No deductions for anything. Not kids, not home mortgage, not medical bills. Nothing. You make $100K/yr you tax liability is $5,000. You make $1K/yr, your tax liability is $50. A one page filing form. And the IRS could be reduced by 90%. How much money would the federal government save by reducing the IRS employees by 90%?
My understanding of the flat tax that has been discussed for the past 20 years is that it is a consumption tax.
It doesn’t matter how much you earn, it’s no one’s business, it only matters how much you spend. You have millions in the bank, but you don’t want to pay the tax on a new Mercedes AMG S55, but you are willing to pay the tax on a Hyundai…coool. You sell drugs on the street corner and you want to wear flashy clothes and jewelry, while driving a new Mustang GT with blacked out windows and thousands of dollars worth of stereo equipment? Coool, go for it homey, welcome to the world of paying your fair share of taxes.
Of course, this only works if the 16th amendment is repealed at the same time the consumption tax is implemented, else the crooks in D.C. would burn us down. The IRS would still be reduced by 90%, as the point of sale programs would be adjusted so the tax receipts are automatically transferred to the gubmint. Billions would be saved each year by reducing the IRS, fewer salaries, bonuses, benefits and perquisites, along with no longer needing all of the leased office buildings, office furniture, computers and supplies.
You don’t want to pay taxes, you don’t buy anything. You want, you need, you pay. In the meantime, all the money that was being with held from your pay check is yours.
I also support the Flat Tax. but to make it easier for neolithic incompetents[fucking liberals] to do the math I use 10% of total income earned. therefore
You make : You Owe in Taxes:
$50,000 $5,000
$100,000 $10,000
$500,000 $50,000
$ 1,000,000 $100,00
$5,00,000 $500,000
Etc etc ad nauseum. So simple not even a 12yr old could fuck it up. For those on the lower end of that bracket , those that make $50k/year that want to bitch about what those wealthier than them pay. you simply tell them
of the guy who makes $500k/year
“Dude he pays 2 times every year what you do.”
Of the guy that makes $1,000,000/year:
“Dude he pays 20 times in one years worth of taxes what you do. Over the course of 6yrs he’ll pay out more than you will in your entire LIFE! So stop whining like a 4yr old would you?” [$100k x 6rs equals $600k divided by $5,000 equals 120.
Of the guy who makes $5,000,000/year:
"Dude seriously? What the fuck are you whining about? He pays more in taxes in one year than you'll pay in your entire life you miserable little prick."
At that point if they want to keep arguing I'm gonna figure it's worth the .25c for the bullet to put HIM out of MY misery. [My misery because his constant whining like a child means he's a waste of perfectly good oxygen, because he hasn't learned and in point of fact REFUSES to learn the realities of life. Besides... the little fucker is giving me a headache]
The one point you and I differ on is income. It ain’t no one’s business how much money a person makes.
It only matters what they spend(consume).
Basically what you discussed, as a consumption tax, is really the Fair tax that is being pushed by some. The problem with that is it will also drive up the costs of goods that are needed by people, as food, medicine would also be taxes on a federal level. If you are living, like many seniors, on around #12k/yr in Social Security another 8-10% in federal tax on your groceries will be a game changer.
And the Feds will always know how much you make since that is the determining factor in how much you pay in FICA taxes.
What we need, and have for a long time, is that the Federal government is not allowed to tax us in any respect that is not Constitutionally based. One has to wonder how we managed for 125 years without a federal income tax.
Our federal government is a leviathan that rises to consume us all. Just type into your search engine “U.S. federal agencies by alphabet” and be prepared to go into cardiac arrest.
Some believe it would actually reduce the cost of most goods because production costs would be lowered. One huge saving would come in not needing so many tax attorneys and accountants to be in compliance with the massive tax code. Food and medicines would remain exempt.
The Feds wouldn’t have to know how much one earns, it’s none of their damn business in the first place. All they need concern themselves with is how much taxes are being collected at the point of sale.
I agree the gubmint needs to adhere to the Constitution and there are still many that believe the income tax is unConstitutional.
Consumption vs Income Tax
I don’t know no2. I could go for that one too I suppose. I’m just sick of the bullshit where arguing over “whose not paying their fair share” blame game class warfare shit is concerned. It’s making me cranky as hell. which isn’t much of a stretch since I was born with an evil temper.
That’s what the lefturds like about the income tax and the intrusive IRS, they get to know what people earn and use it to pump the class envy.
The drug dealing gang bangers aren’t paying into the system, except with sales tax, but with a consumption tax they would pay just like everyone else.