Misconceptions on American Taxes

Discussion in 'Politics' started by Navy1960, Apr 17, 2012.

  1. Navy1960
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    Navy1960 Senior Member

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    At a Senate Finance Committee hearing in May 2011, Senator Charles Grassley said, “According to the Joint Committee on Taxation, 49 percent of households are paying 100 percent of taxes coming in to the federal government” (meaning that the other 51 percent pay no federal tax whatsoever). At the same hearing, Cato Institute Senior Fellow Alan Reynolds asserted, “Poor people don’t pay taxes in this country.” In 2010, Fox Business host Stuart Varney said on Fox and Friends, “Yes, 47 percent of households pay not a single dime in taxes.”[13]

    None of these assertions are correct. As the Tax Policy Center’s Howard Gleckman noted regarding a TPC estimate that almost half of Americans owed no federal income tax in 2009, “rarely has a bit of data been so misunderstood, or so misused.” Gleckman wrote:

    The reality is that the income tax is one of a number of types of taxes that individuals pay, both over the course of their lifetimes and in a given year, and it makes little sense to treat it as though it were the only tax that matters. Some 82 percent of working households pay more in payroll taxes than in federal income taxes.[15] In fact, low- and moderate-income people pay a much larger share of their incomes in federal payroll taxes than high-income people do: taxpayers in the bottom 20 percent of the income scale paid an average of 8.8 percent of their incomes in payroll taxes in 2007, compared to 1.6 percent of income for those in the top 1 percent of the income distribution (see Figure 2).[16]

    Misconceptions and Realities About Who Pays Taxes — Center on Budget and Policy Priorities

    This does of course does not include everytime someone goes puts gas in the tank or performs any number of transactions that are subject to a Federal tax. Frankly, all this political talk about how the "wealthy" are the only one's paying taxes is complete nonsense as is the advocating for taxing one group of Americans including the wealthy because you believe they are not paying their fair share. It's not the rate thats the problem its the number of deductions that allows someone not to pay the existing rate. So you want to increase revenue and provide an incentive for these so called " job creators" to hire in this nation, it's easy make their tax burden rewarding when they actually create jobs in this nation. Let me explain, if for example Apple wanted to build a plant here in the United States to make iPhones the tax burden should be such that every deduction possible should be allowed, and the reverse should be true, should they choose to build those products without American labor then they should not be entitled to deductions that benefit this nation. Frankly, to raise taxes on one group of Americans for a limited return doesn't seem like a very good long term solution to a revenue problem that would seem to be much easier to fix, should our Congress come of for air from the K Street for a moment and do so.
     
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  2. Ariux
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    Ariux BANNED

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    Four points:

    1) Not only are federal payroll taxes larger for the middle class than income taxes, but the "employer portion" of payroll taxes is an equally large tax that essentially comes out of the middle-classes pocket. The middle class pays more in payroll taxes than billionaires pay in all federal taxes combined.

    2) Regarding income taxes alone, those not paying income taxes are the poor and the lower-income middle-class with children. It's dishonest to lump these people in with the middle-class, to contrast them with the rich. It obscures the tax burden on the middle class and makes the rich look like they're paying much more than the middle-class, they're not.

    3) The income tax code is greatly biased in favor of the rich, so that they pay a lower tax rate than the nominal tax rate that these studies use. Vast amounts of their income is not being counted as income, for tax purposes, in the first place.

    4) The primary function, albeit extra-constitutional, of the federal government is wealth redistribution. I can't imagine a more efficient and fair method of wealth redistribution than progressive taxes. Yet, federal taxes are overall regressive.
     
  3. healthmyths
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    healthmyths Gold Member Supporting Member

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    TOTAL deception in that Social Security and Medicare are returned in the form of payments at retirement! People paying in GET MORE then what they pay in returned!
    PLUS their employers' contribute equally!
    SO"payroll" taxes are NOT TAXES but are returned PLUS MORE!
    LOOK at this table from the IRS and GET YOUR FACTS STRAIGHT!!
    $2008IRStaxesa.jpg
     
  4. uscitizen
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    uscitizen Senior Member

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    I hate the carpet tacks.
    I always mashed my fingers when using them.
     
  5. occupied
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    occupied Gold Member

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    The working poor damned sure foot the state revenue burden and the rich get off pretty easy in comparison. State taxes (income, property, excise, fees) are regressive as hell, practically every one of them.
     
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  6. Navy1960
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    Navy1960 Senior Member

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    My facts are perfectly acurate, in fact, the table you provided serves to help my point "Tax RETURN Summary" as suggested in my original post, "Income Taxes" are but one leg of how the Federal Govt. gets it's revenue and " payroll" taxes are another. So your telling me that your payroll tax deduction is only FICA ? Interesting that would put you in a very rare catagory as FICA is not the only deduction on most payroll taxes. While it's true that that most Seniors do get a larger return on Social Security than they paid in, that is not reflected in the so called " only the top 49%" pay taxes as the Sen. suggested. I also suggest if you don't think payroll taxes are taxes then you advise your employer of the same and tell them and see the response you get.
     
  7. SniperFire
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    SniperFire Senior Member

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    Why would you consider user fees to be 'regressive'?

    You expect others to pay your way?
     
  8. Navy1960
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    Navy1960 Senior Member

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    Oh one more thing on my previous post, I also suggest the poster when going to a gas station ask them what the Federal excise tax on gas is. Hint, in 2011 it was more than .15 cents a gallon. and yes thats a tax too my friend. So the claim that only the wealthy pay Federal taxes in this nation is a lot of bunk. In fact unless there is a means test applied to Social Security soon, those so called "job creators" fall into that taking out more than they put in catagory too.
     
  9. Misty
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    Misty Gold Member

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  10. Navy1960
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    Navy1960 Senior Member

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    Employer Payroll Tax Responsibilities
    The responsibility for payroll taxes continues even after paychecks have been issued to employees. The company is responsible for paying the employer's share of payroll taxes, for depositing tax dollars withheld from the employees' paychecks, preparing various reconciliation reports, accounting for the payroll expense through their financial reporting, and filing payroll tax returns.

    Both employer and employee hold the responsibility for collecting and remitting withholding taxes to the Internal Revenue Service (IRS). For the most part, the employer withholds these taxes on behalf of their employees, but in cases where an employer does not do this, or where an employee is self-employed, it is the responsibility of the employee to pay these withholding taxes.

    Employer and Employee Responsibilities - Employment Tax Enforcement

    So again, minus the labels because you have no clue if I am a liberal or not, I suggest that if you believe that the "net wages" you earn are your only responsibility then please by all means when you file your taxes use that instead of "gross wages". The IRS has made it pretty clear that the employer withholds taxes and pays them on your behalf. I also suggest you might want to take a look at form 1099.
     

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