Taxing those who make money

[Avatar4321]

Who benefits the most from taxing those who work for their money? How will Americans work hard to produce wealth if they are going to loss nearly half their money every April 15th? Moreover, why?

 

[The Rabbi]

Obviously yu cant tax people who dont make money. They dont have it.
But your point is good. Taxes set up incentives. And if your incentives punish productive people then they will stop being productive.
This isn't terribly complicated. But you would think the current administration would have realized this by now.

 

[SpidermanTuba]

Who benefits the most from taxing those who work for their money? How will Americans work hard to produce wealth if they are going to loss nearly half their money every April 15th? Moreover, why?

I'm not sure what you mean by "nearly half" My wife and I both work hard, and after all our deductions and credits we are paying less than 7.5% in income tax. (she pays FICA, I don't because I'm a graduate student and research assistant. I have no idea why graduate student income is exempt from FICA)



In fact, a married couple, filing jointing, with no kids, who makes $500,000 a year, and takes the standard deduction and two exemptions, will pay 30.4% of their income in federal income, social security, and medicare taxes.

The same couple making $250,000 year pays 28.2% - that includes income and FICA taxes.

30.4% is not exactly "nearly half". Its actually close to a quarter than a half.

Even a couple making $1,000,000 will pay 33.4% - this is much close to 1/3 than 1/2


check you math buddy

 

[SpidermanTuba]

And if your incentives punish productive people then they will stop being productive.

You're right. My wife and I will both quit our jobs if they raise taxes, because we don't need money to live.



The rich have the luxury of being able to quit their jobs if the tax rates get too high for them. The poor and middle class, on the other hand, are forced to work that much harder when taxes go up for them, to make up the lost income.

For every CEO that retires a year early because tax rates went up, there is someone chomping at the bit behind him to start their career as a CEO 1 year earlier.

 

[QUENTIN]

Taxes set up incentives. And if your incentives punish productive people then they will stop being productive.
.

Our modern history has demonstrated this isn't true. From the Great Depression to the 80's, the top tax rate was between 75-94% and we still had highly productive business, captains of industry, a wealthy elite who lived fabulous, lavish lives and employed millions of people.

In fact, they employed many, many more Americans than do modern American businesses, paid them a living wage, and actually produced things (like cars, furniture, electronics, really...almost everything we bought and used) rather than just moving theoretical money around to produce a profit off of transactions that don't contribute any value or good.

Throughout the 1950's, when the wealthy were getting 91% of their income taxed, they still had the incentive to work hard and run businesses. Know why? Because they still got to be the richest around and enjoy all that comes with that. We've just massively raised the expectation for what wealth means and expanded the rich-poor gap to unimaginable levels.

All the theories underpinning trickle-down economics don't actually hold up at all when applied, as we've seen every time they are.

 

[kyzr]

The top 1% of incomes own 90% of everything. They need to pay taxes. I applaud Barry for going after off-shore tax cheats.

 

[California Girl]

The top 1% of incomes own 90% of everything. They need to pay taxes. I applaud Barry for going after off-shore tax cheats.

The top 1% already pay more than the 99%. Get a fucking clue. Stop whining about what the guy next door has and mind your own business. This obsession with who earns most, this petty jealousy, is pathetic.

 

[Luissa]

Where have you been Cali? I have missed you.

 

[Luissa]

The top 1% of incomes own 90% of everything. They need to pay taxes. I applaud Barry for going after off-shore tax cheats.

The top 1% already pay more than the 99%. Get a fucking clue. Stop whining about what the guy next door has and mind your own business. This obsession with who earns most, this petty jealousy, is pathetic.

I have heard Washington State pays the most federal income tax out of any state.
So when people talk crap about Gates, I remind them that he has made many people rich including two of family members, and two of my extended family members.

 

[California Girl]

The top 1% of incomes own 90% of everything. They need to pay taxes. I applaud Barry for going after off-shore tax cheats.

The top 1% already pay more than the 99%. Get a fucking clue. Stop whining about what the guy next door has and mind your own business. This obsession with who earns most, this petty jealousy, is pathetic.

I have heard Washington State pays the most federal income tax out of any state.
So when people talk crap about Gates, I remind them that he has made many people rich including two of family members, and two of my extended family members.

Yea, but he got rich on the backs of poor people! It's an outrage! Never mind the taxes he pays and the vast amounts he gives to charity.... This constant whining about how unfair it is for anyone to make money sickens me. Personally, I think Gates is inspirational. He shows what a good idea, some determination and hard work will get you.

 

[skookerasbil]

The top 1% of incomes own 90% of everything. They need to pay taxes. I applaud Barry for going after off-shore tax cheats.

The top 1% already pay more than the 99%. Get a fucking clue. Stop whining about what the guy next door has and mind your own business. This obsession with who earns most, this petty jealousy, is pathetic.

Its a mental condition.............

 

[DiamondDave]

Taxes set up incentives. And if your incentives punish productive people then they will stop being productive.
.

Our modern history has demonstrated this isn't true. From the Great Depression to the 80's, the top tax rate was between 75-94% and we still had highly productive business, captains of industry, a wealthy elite who lived fabulous, lavish lives and employed millions of people.

In fact, they employed many, many more Americans than do modern American businesses, paid them a living wage, and actually produced things (like cars, furniture, electronics, really...almost everything we bought and used) rather than just moving theoretical money around to produce a profit off of transactions that don't contribute any value or good.

Throughout the 1950's, when the wealthy were getting 91% of their income taxed, they still had the incentive to work hard and run businesses. Know why? Because they still got to be the richest around and enjoy all that comes with that. We've just massively raised the expectation for what wealth means and expanded the rich-poor gap to unimaginable levels.

All the theories underpinning trickle-down economics don't actually hold up at all when applied, as we've seen every time they are.

Ahhh.. the wingers and misinformation... a marriage made in heaven

Why don't you try and look at what was deemed income, what deductions were like, etc... it was not like some complete 91% taxation

But nice try

It is simple... you want equality, expect it in all areas, and that means taxation too... equal treatment under the government and under law... blind as to race, creed, sex, and INCOME.... tax the earning or dollar, NOT the person under some subjective punishment Robin Hood based system.... every citizen pays the same EQUAL % tax on every dollar earned... justice is supposed to be blind, so should taxation

 

[rightwinger]

You have to tax where the money is. 10% of the population controls 90% of the wealth.

 

[Old Rocks]

The top 1% of incomes own 90% of everything. They need to pay taxes. I applaud Barry for going after off-shore tax cheats.

The top 1% already pay more than the 99%. Get a fucking clue. Stop whining about what the guy next door has and mind your own business. This obsession with who earns most, this petty jealousy, is pathetic.

I have heard Washington State pays the most federal income tax out of any state.
So when people talk crap about Gates, I remind them that he has made many people rich including two of family members, and two of my extended family members.

Bill Gates and Warren Buffet both state that the wealthy should pay a higher percentage of their income in taxes.


Buffett Slams Tax System Disparities - washingtonpost.com
NEW YORK, June 26 -- Warren E. Buffett was his usual folksy self Tuesday night at a fundraiser for Sen. Hillary Rodham Clinton (D-N.Y.) as he slammed a system that allows the very rich to pay taxes at a lower rate than the middle class.

Buffett cited himself, the third-richest person in the world, as an example. Last year, Buffett said, he was taxed at 17.7 percent on his taxable income of more than $46 million. His receptionist was taxed at about 30 percent.

Buffett said that was despite the fact that he was not trying to avoid paying higher taxes. "I don't have a tax shelter," he said. And he challenged Congress and his audience to see what the people who "clean our offices" are taxed, to loud applause.

 

[Old Rocks]

The top 1% already pay more than the 99%. Get a fucking clue. Stop whining about what the guy next door has and mind your own business. This obsession with who earns most, this petty jealousy, is pathetic.

I have heard Washington State pays the most federal income tax out of any state.
So when people talk crap about Gates, I remind them that he has made many people rich including two of family members, and two of my extended family members.

Yea, but he got rich on the backs of poor people! It's an outrage! Never mind the taxes he pays and the vast amounts he gives to charity.... This constant whining about how unfair it is for anyone to make money sickens me. Personally, I think Gates is inspirational. He shows what a good idea, some determination and hard work will get you.

Let Bill Gates address the issue of taxes.

Bill Gates: Annual Letter on Innovation, Economic Recovery, Bank Tax and Twitter - ABC News

Billionaire businessman and philanthropist Bill Gates said he isn't surprised by the sluggish economic recovery, adding that tax increases are needed to balance the federal budget.

The businessman discusses his foundation's progress on health and education.

More Photos"The budget is very, very out of balance," Gates said on"Good Morning America" today. "Without changes in taxes or entitlement policies, it won't get back into balance. Taxes are going to have to go up and entitlements are going to have to be moderated."

Gates also showed support for the president's plan to tax the country's largest banks to recover losses from the Troubled Asset Relief Program, despite his friend and Berkshire Hathaway CEO Warren Buffett's opposition to the plan.

"That's a rare case," he said. "Ninety-nine percent of the time I'll agree with Warren. He's a great guide for me. I think we see it differently."

 

[The Rabbi]

And if your incentives punish productive people then they will stop being productive.

You're right. My wife and I will both quit our jobs if they raise taxes, because we don't need money to live.



The rich have the luxury of being able to quit their jobs if the tax rates get too high for them. The poor and middle class, on the other hand, are forced to work that much harder when taxes go up for them, to make up the lost income.

For every CEO that retires a year early because tax rates went up, there is someone chomping at the bit behind him to start their career as a CEO 1 year earlier.

It isn't church-mouse poor grad students vs super wealthy.
There is a lot in between. Most millionaire live in middle class neighborhoods and drive American cars that are 5 years old (check The Millionaire Next Door). They aren't living hand to mouth. But they can structure their time and actvities to take advantage of tax laws. They will try to push compensation into the future. And sometimes that means working less. When they work less, everyone who is dependent on the economic activity they generate gets less too.
Unless you want to posit that people do not respond to incentives (making you the biggest fool on this site) you will have to admit that taxes are disincentive to produce at the top levels. And thsoe are the levels where wealth is generated for others.

 

[Gadawg73]

99% of the 93 foot thick Tax Code is to allow those that have money to avoid paying taxes.
Do away with the IRS and go to the fair tax.
When I buy a case of suds I pay the same as the next guy.
Should be the same with taxes. Taxing high achievers more is unproductive to wealth expansion.
Folks claim they want a bigger slice of the pie. What morons.
If the pie gets bigger more get a slice.

 

[Misty]

30% in income tax is outrageous! And it's just the beginning. Add in all the other taxes we pay, property, sales tax and it gets closer to 50%.

Flat tax is the only true fair and equal way.

Cut spending. And at this point, I don't care from where. Cut social security and the military budget since that's where most of our money goes.

 

[Misty]

For example; did you know foster kids gets social security their whole lives even after they are adopted? What's up with that?

 

[Mr Natural]

“Conservatives say if you don’t give the rich more money, they will lose their incentive to invest. As for the poor, they tell us they’ve lost all incentive because we’ve given them too much money.” — George Carlin.