Armed Polite Society
Main Forums => Politics => Topic started by: MillCreek on February 24, 2016, 04:00:21 PM
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http://www.marketwatch.com/story/45-of-americans-pay-no-federal-income-tax-2016-02-24?siteid=rss&rss=1
Either not enough income to be taxed or tax breaks erase their tax liability. I will be bearing this in mind as I start my taxes soon.
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I guess Romney was right again.
I only read this link and didn't go to the Tax Policy Center URL, but I wonder if they compute ACA credits into that, and if so, how much an effect it has on the numbers vs pre-Obamacare years?
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Plus keep in mind that quite a few of those get refundable credits like Earned Income Credit and Child Tax Credits, so they are getting "free" money.
In the interest of full disclosure I get about $1300 in EIC because I have around $5-6,000 of earned income from what I make doing taxes and working as an Election Judge. I have zero taxes withheld.
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Most useful information:
Income level Share of total federal individual income tax paid Average income tax bill per person
Lowest 20% -2.2% -$643
Second lowest 20% -1.7% -$621
Middle income 4.2% $1,743
Second richest 20% 12.9% $6,285
Richest 20% 86.8% $50,176
Good to know I'm the second richest 20% bracket, which is disturbing. Well, I pay more than that in just federal taxes alone. My 1099 work is taxed at nearly half. Hence why I don't do as much as I used to, it's just not worth it unless I can charge $50/hr. Half will go to taxes, have to do paperwork to make sure I keep on track of quarterly payments to the IRS, etc. Add in tools, consumables, wear and tear on vehicle/equipment/etc... $50 minus $25 in taxes minus gas money minus wear on tools minus misc expenses that one can't bill the client for. Yeah, SOME of it you can deduct. Some you can't.
One thing to keep in mind, some people equate "no income tax" to "no taxes". Good for soundbites, bad for accuracy. Everyone pays. Every. One. Pays. Gas taxes, cell phone taxes, sin taxes, custom taxes, utility taxes, and literally hundreds of other hidden and not so hidden taxes. They pay higher prices on products for corporate taxes, essentially second hand taxation.
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Don't let's forget the unearned income tax credit. Likely in Rev's negative tax load numbers. I just LOVE reading about how folk who already suck up tax resources by the pallet load get even more cash just for breathing.
I guess Romney was right again.
So was Dan Quayle. And Goldwater. And McCarthy.
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Don't let's forget the unearned income tax credit. Likely in Rev's negative tax load numbers. I just LOVE reading about how folk who already suck up tax resources by the pallet load get even more cash just for breathing.
So was Dan Quayle. And Goldwater. And McCarthy.
Yep, people keep forgetting about that. Add in that the IRS seems to be completely unwilling to take enforcement actions against fraud outside of political motivations.
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One thing to keep in mind, some people equate "no income tax" to "no taxes". Good for soundbites, bad for accuracy. Everyone pays. Every. One. Pays. Gas taxes, cell phone taxes, sin taxes, custom taxes, utility taxes, and literally hundreds of other hidden and not so hidden taxes. They pay higher prices on products for corporate taxes, essentially second hand taxation.
I think a lot of working homeowners would be surprised, once you factor in everything, at how much closer they are to 60% than 20% of their money going to taxes.
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Taxes used to be an important issues the Republicans used very successfully... and then the Republicans lowered tax rates greatly, and now it is no longer an issue they can use to beat the democrats with with... Republican tax rates are why 45% pay no income tax.