ITT we talk TAXES!

[PiKA2001]

Originally Posted by AGDee

Get married to a woman who doesn't want to work, buy a house so you have mortgage interest to claim, go back to school so you can claim tuition and have twin babies and send them to day care. You'll hardly owe a penny then.

No thanks, that's spending $30,000 just to save $5,000. Bad investment. I'm not a fan of our progressive tax structure, it's such a hot mess. I wish we had to a flat 12% across all income levels with no refunds, credits, deductions, or bloated IRS.

[PhoenixAzul]

I'm still waiting on my W2s...

My brother (the CPA) is going to have a hell of a time doing my taxes this year. Three different employers, three different municipalities, three different states, and deductions for my moving expenses for moving to Oklahoma. It's a good thing he loves me.

The year I lived part time in Scotland and part time in the US, he wanted to kill me. I actually got a refund from both governments that year, though!

[Drolefille]

Originally Posted by PiKA2001

No thanks, that's spending $30,000 just to save $5,000. Bad investment. I'm not a fan of our progressive tax structure, it's such a hot mess. I wish we had to a flat 12% across all income levels with no refunds, credits, deductions, or bloated IRS.

Flat taxes are the most regressive taxes. It's true.

[PiKA2001]

Originally Posted by Drolefille

Flat taxes are the most regressive taxes. It's true.

Absolutely not. A FIXED tax is regressive, i.e. Every citizen pays $5,000 in taxes per year regardless of their income as are various consumption taxes such as sin taxes or value-added taxes. An across the board percentage tax is more middle of the road between progressive and regressive.

[Drolefille]

Originally Posted by PiKA2001

Absolutely not. A FIXED tax is regressive, i.e. Every citizen pays $5,000 in taxes per year regardless of their income as are various consumption taxes such as sin taxes or value-added taxes. An across the board percentage tax is more middle of the road between progressive and regressive.

Ok a fixed tax is MORE regressive, but a percentage tax is still regressive because poorer people use a greater percentage of their income to live on than wealthier people do. Even 1% of taxes is a much bigger deal to people who make less per month. It's the same reason that eliminating an income tax and replacing it purely with a sales tax is not ideal either. I've read up on it a lot because the flat tax sounded like a great idea to me too, until it didn't anymore.

[aephi alum]

Note to self: Estimated taxes due now.

Frak.

For the record, the marriage tax penalty sucks big fat hairy rocks the size of Pittsburgh. I had always gotten a nice refund. Then I got married, and suddenly had to pay. A LOT.

Then we bought a house, and the mortgage deduction made it all better.

[PiKA2001]

Originally Posted by Drolefille

Ok a fixed tax is MORE regressive, but a percentage tax is still regressive because poorer people use a greater percentage of their income to live on than wealthier people do. Even 1% of taxes is a much bigger deal to people who make less per month. It's the same reason that eliminating an income tax and replacing it purely with a sales tax is not ideal either. I've read up on it a lot because the flat tax sounded like a great idea to me too, until it didn't anymore.

Wth a flat tax the less you make, the less you pay. A 12% rate on someone who makes $23,000 would only come to around $200 a month as opposed to someone making $230,000 would be paying over $2,000 a month. The rich will still be paying significantly higher taxes. There are people making 6 figures that are living paycheck to paycheck so I don't think you can say that only lower income earners are the only owns spending all of their income on living expenses. I think if all working Americans were contributing to the income tax burden politicians and government officials would become better stewards of tax revenues, as well as ending the class warfare involving taxation that I've seen all my life.

[AGDee]

Originally Posted by PiKA2001

Wth a flat tax the less you make, the less you pay. A 12% rate on someone who makes $23,000 would only come to around $200 a month as opposed to someone making $230,000 would be paying over $2,000 a month. The rich will still be paying significantly higher taxes. There are people making 6 figures that are living paycheck to paycheck so I don't think you can say that only lower income earners are the only owns spending all of their income on living expenses. I think if all working Americans were contributing to the income tax burden politicians and government officials would become better stewards of tax revenues, as well as ending the class warfare involving taxation that I've seen all my life.

The point is, for someone making only $23000 a year, that $200 is probably the difference between eating or not, or buying their medication or not. You can only get living expenses down so low. The belt will only tighten so far. Additionally, you said "per person". So does a single mom with two kids making $23K pay 12% for each person?