Also, I haven't filed my 2011 tax returns yet because my account got an extension.
---------- Post added September-19th-2012 at 11:25 AM ----------
Also, I thought this article really explained evenly some of the problems with Romney's comments, and some of what was right about it:
Citizenship isn't a timeshare program that we all buy into. We got rid of the landowning requirement a long time ago. So when one of us falls on hard times, we still count as Americans, and we still help each other out. I don't want to live in a country where your status as a citizen is dependent upon how much money you gave the government that year. That is how the most corrupt governments are run.
2) So, in your opinion, a person who, say, earns wages of $50,000, but who has deductions and exemptions of $50,000, has no income? Interesting. I wonder how many of those 47% who "pay no income taxes" "have no income"?
3) So, when I look at a form 1040, and I see an entire section labeled "Income", (of which wages are the first line), and which ends with line 22, which is labeled, in bold print, as "total income", the IRS is mis-labeling those numbers, because that's not really income, that's "gross receipts"? You should notify them that they don't know what the word "income" means.
4) Or maybe I'm mis-reading you. Perhaps your argument is that "It's not income unless it's has loopholes and exemptions and exclusions. If it's a simply, flat, formula that applies to everybody, then it isn't income". But then, capital gains taxes have a few exemptions and deductions. But really not very many.Your employer withholds FICA taxes on all payments to you regardless of your expenses, deductions, exemptions, or credits. It is therefore a tax on your gross receipts from employment.
5) Or maybe you're arguing that it isn't income unless it's deductible? But wait. Capital gains taxes aren't deductible, either. That can't be it.Furthermore, FICA taxes are not deductible on your federal income tax return.
Your opinion that people who make less money than you should be treated with contempt may qualify you as a Republican. But it doesn't seem relevant to your attempt to justify an untrue talking point that Republicans have been making for decades.Therefore, the people who pay only FICA taxes can cry me a river.
I'll observe that this isn't a definition of what is or isn't a tax on income, either.When I earn $100, not only do I only get to keep $85 of it due to FICA taxes, but the full $100 counts toward my earned income on my federal return. Therefore, FICA taxes are more onerous for income taxpayers than for nonpayers because of the nondeductibility.
But let me see if I've for your point.
Person A and Person B both have income
Both of them pay the same FICA taxes on that income.
Person B also pays income tax on part of his income.
Therefore, Person B's income isn't income?
Ah, got it. A tax on income isn't a tax on income, unless that tax goes to one particular part of the federal government. If it goes to some other part of the government, then it isn't a tax.Finally, the purpose of FICA taxes is to fund 2 very specific federal programs, and the argument here is not whether payers of FICA taxes are entitled to the benefits from the programs they have paid into. The argument is whether people who only pay FICA are entitled to the benefits from programs funded through the federal income tax. In my opinion, the answer would clearly be no if the government were actually keeping FICA taxes in a lock box type system. Since that's not the case, and FICA taxes are actually used to fund the general operations (and soon to be vice-versa), then maybe there's an argument to be made that FICA payers have earned other benefits. In my opinion, that's still pretty weak.
You should have tried that argument on the Supreme Court, recently. They seemed to think that if the money goes to the federal government, then it's a tax.
Ah, got it. "Capital Gains taxes are income taxes, because here's some of the rules for how capital gains taxes are calculated".Capital gains are an income tax. First of all, capital gains on assets held for less than 1 year are taxed at the individual's ordinary income tax rate. Second of all, all capital gains earned by corporations are taxed at that corporation's marginal income tax rate regardless of whether they are short term or long term. Third, losses from capital assets can offset ordinary income up to certain thresholds, with carryforwards (just like net operating losses from ordinary income can be carried forward). Fourth, when the income tax was originally established in 1913, all capital gains were taxed as ordinary income. There are plenty of other areas of the code in which congress has given preferential treatment to certain types of assets -
Ah, another potential definition:I don't understand why this preferential treatment should exclude something from being called an income tax.
If it's taxed less than earned income, then it's an income tax. If it's taxed more than earned income, then it isn't.
That's a good one.
Ya know, with all of the importance Romney puts on judging americans by the taxes we pay, I just want to ask again.... Lets see more of YOUR tax returns Mr. Romney.
Come on. I'm sure you have nothing to hide.
A point I haven't seen talked about much from that donor dinner is when Mitt said, "this would be easier if I was Latino." What does that even mean?
Or how about the "If Latinos start voting for the Democrats as faithfully as the African American population does then we are in trouble, as a party and as a nation."
So...Mitt...am I hearing you say that if the African Americans and Latinos lead us then America is in trouble?
Last edited by AsburySkinsFan; September-19th-2012 at 10:46 AM.
People will have deductions and tax credits for a whole variety of interest including mortgage interest deduction, dependent allowances and dependent care, retirement contributions, charitable donations etc
Here's a simple example from : http://www.calcxml.com/calculators/f...-tax-estimator
Estimated Tax Analysis
Gross income $50,000
Qualified plan contributions - $1,000
Adjusted gross income = $49,000
Standard/Itemized deductions - $500
Personal exemptions - $7,600
Taxable income = $40,900
Tax liability before credits $5,265
Child tax credits - $2,000
Estimated tax liability = $3,265
Estimated federal income tax liability will be approximately $3,265. Your average tax rate is 6.5% and your marginal tax rate is 15.0%.
By lowering the income or increasing the deductions and credits, you could have zero tax liability.
Last edited by Corcaigh; September-19th-2012 at 10:54 AM.
There is a personal exemption, which is $3,800 per person. And there is a standard deduction, which is $11,900 for married couples and $5,950 for singles. If your income is below the exemption plus the standard deduction, you will pay no income tax. So any married couple making less than $19,500 and any single person making less than $9,750 pays no income tax. And if you get the EITC, child credits, or other deductions, you can make a little bit more and still pay no income tax.
Last edited by DjTj; September-19th-2012 at 10:58 AM.
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