Who Pays Income Taxes Anymore?

[Sacamuelas]

http://www.usatoday.com/money/perfi/...me-taxes_N.htm

The frustrating part of the situation is that the goberment leadership has been pandering to and hence enlarging this population of dependant citizens. They in turn, reproduce with no financial impediments and create more "voters" in the future that will expect more for less.

[Sten]

I do.

[Sacamuelas]

haha Nice Sten.

To answer my own question... I do too.
I was just venting my frustration by posting the article. Thought I might share the happiness with the rest of you. LOL

[Paslode]

They haven't yet called me with this years damage, but I know I do.

[The Reaper]

Not the POTUS's staff and friends.

TR

[Green Light]

My son works part time and made a whopping $7K last year. His tax refund is nearly $1,000. He only put in about $500. When you see him driving around, you'll know where your taxes are going.

[Defender968]

Originally Posted by The Reaper

Not the POTUS's staff and friends.

TR

Or any member of Congress or the Senate.....best I can tell.

[GratefulCitizen]

Everyone still pays taxes, just indirectly.

When the "rich" are taxed, this changes the effective rate of return on their investment/labor/business/etc.

The costs are just passed along to everyone else.

Not paying federal taxes only gives the illusion of not paying taxes.
Such illusions are quite effective in furthering some political ends.

[Pete]

Who Pays?

Ask me next Thursday. My reply might not be too civil.

[echoes]

Originally Posted by The Reaper

Not the POTUS's staff and friends.

TR

Spot on answer TR Sir, as usual!!!

(And after reading the Barrack thread in the Soapbox just now...frightening!)

Holly

[dennisw]

Everyone still pays taxes, just indirectly.

When the "rich" are taxed, this changes the effective rate of return on their investment/labor/business/etc.

The costs are just passed along to everyone else.

Not paying federal taxes only gives the illusion of not paying taxes.
Such illusions are quite effective in furthering some political ends.

I'm not sure I can agree with this. Like anyone in business when you're faced with additional costs, you try and build the additional costs into your product price. However, there's nothing forcing anyone to purchase your product or service at this new price. When prices increase, folks may not choose to build a new building, purchase a new car, etc. I once reviewed an estate tax return where they paid $13,000,000 in federal estate tax. The person who passed away was wealthy, but how does one pass that tax onto the citizens at large?

I think your argument is more of a rationale justifying an unequal tax situation. It's ultimately an argument for redistribution of wealth, which I believe most on this board strongly oppose.

However, let's say I buy a home as an investment, fix it up and hold onto it for a few years, and I end up selling it at a gain of $200,000. Unless I do something like a section 1031 exchange(if it still applies) I will more than likely pay an extra capital gain tax of $40,000.00. How do I pass this on? Granted I'm not the rich category you're alluding to, but many middle class Americans pay a ton of taxes, yet have the same voting rights, etc. as those who do not.

How does paying additional taxes affect the rate of return on investments or the price of labor? I don't see a direct relationship.

I discussed this issue today with an employee of Home Depot. I believe the statistic mentioned on the radio was 47% of Americas do not pay any federal income taxes. He said, "you mean the really rich and the poor?" I ask him he believed really rich people pay no tax? He said, Oh, yeah."

I don't see it. Wealthy folks may do extensive tax planning and lower their tax liabilities, but not pay tax?

Now many rich folks may hide their money off shore or commit fraud on the tax returns, but that's a whole different situation. They may also go to jail for it.

One of the issues which created the angst with England during this country's foundation was taxation without representation. I think we would all agree that paying tax without a say in the government is unseemly. What about representation without taxation? How is that any less equitable?

[rubberneck]

Originally Posted by The Reaper

Not the POTUS's staff, friends and the people that voted for him.

TR

I fixed it for you. We are getting to a really scary place in our history. If he continues to push his "change" I expect to see that percentage cross the 50% mark a climb yet higher. Once half the population realizes that all they have to do to avoid having to play federal income tax is to elect someone like Obama than were screwed. It won't be long there after that the people who do pay taxes are going to grow really tired of busting their rear ends to see it more and more of it taken from them and given to those who couldn't care less.

[bandycpa]

I have seen more people owing taxes on their returns this year. Most of this is attributable to either 1) retiree's having less withholding taken out because of the adjusted Federal Withholding tables created by the President's Making Work Pay Credit, and 2) from the Alternative Minimum Tax continuing to be applicable to more and more people.

I will say that the revised education credits have helped out several of my clients, and the $250,000 asset expensing election has helped too (as well as the improved residential energy credit...I've seen more roofs, doors, and windows sales invoices this year than ever ). Still, with the talk of the favorable long-term capital gains rates set to expire at the end of 2010, we may see stock selloffs in 2010 like we haven't seen in years.

One week to go folks. One week to go.


Bandy

[echoes]

Originally Posted by bandycpa

I have seen more people owing taxes on their returns this year. Most of this is attributable to either 1) retiree's having less withholding taken out because of the adjusted Federal Withholding tables created by the President's Making Work Pay Credit, and 2) from the Alternative Minimum Tax continuing to be applicable to more and more people.

I will say that the revised education credits have helped out several of my clients, and the $250,000 asset expensing election has helped too (as well as the improved residential energy credit...I've seen more roofs, doors, and windows sales invoices this year than ever ). Still, with the talk of the favorable long-term capital gains rates set to expire at the end of 2010, we may see stock selloffs in 2010 like we haven't seen in years.

One week to go folks. One week to go.


Bandy

Bandy!!! As the resident CPA, hope you are not pulling all your hair out right now, mi amigo! (((Breathe)))

Holly

[bandycpa]

Originally Posted by echoes

Bandy!!! As the resident CPA, hope you are not pulling all your hair out right now, mi amigo! (((Breathe)))

Holly

Thanks Holly. It's been a wild ride this tax season (well, as wild a ride as a CPA can have). As the old adage goes, we see light at the end of the tunnel, and it turns out it isn't a train!


Bandy