ITT we talk TAXES!

[PiKA2001]

In all, the tax code is filled with a total of $1.1 trillion in credits, deductions and exemptions, an average of about $8,000 per taxpayer, according to an analysis by the National Taxpayer Advocate, an independent watchdog within the IRS.
More than half of the nation's tax revenue came from the top 10 percent of earners in 2007. More than 44 percent came from the top 5 percent. Still, the wealthy have access to much more lucrative tax breaks than people with lower incomes.
Obama wants the wealthy to pay so "the amount of taxes you pay isn't determined by what kind of accountant you can afford."
Eric Schoenberg says to sign him up for paying higher taxes. Schoenberg, who inherited money and has a healthy portfolio from his days as an investment banker, has joined a group of other wealthy Americans called United for a Fair Economy. Their goal: Raise taxes on rich people like themselves.
Shoenberg, who now teaches a business class at Columbia University, said his income is usually "north of half a million a year." But 2009 was a bad year for investments, so his income dropped to a little over $200,000. His federal income tax bill was a little more than $2,000.
"I simply point out to people, 'Do you think this is reasonable, that somebody in my circumstances should only be paying 1 percent of their income in tax?'" Schoenberg said.

The share of people paying no federal income tax has dropped slightly the past two years. It was 47 percent for 2009. The main difference for 2010 was the expiration of a tax break that exempted the first $2,400 of unemployment benefits from taxation, Williams said.
In 2009, nearly 35 million taxpayers got a tax break for paying interest on their home mortgages, and nearly 36 million taxpayers took the $1,000-per-child tax credit. About 41 million households reduced their federal income taxes by deducting state and local income and sales taxes from their taxable income.
About 36 million families cut their taxes by nearly $35 billion by deducting charitable donations, and 28 million taxpayers saved a total of $24 billion because their income from Social Security and railroad pensions was untaxed.

I get so mad when I read bullshit like this, we need tax REFORM! No wonder we are in the financial shit-storm that we are currently in. Half the country doesn't pay taxes and the other half that does can write off everything from breast pumps (health spending) to handjobs (business entertainment). I'd like to see an end to credits and deductions save for people who make under $20,000 and medical and education costs.








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[aephi alum]

Originally Posted by PiKA2001

I get so mad when I read bullshit like this, we need tax REFORM! No wonder we are in the financial shit-storm that we are currently in. Half the country doesn't pay taxes and the other half that does can write off everything from breast pumps (health spending) to handjobs (business entertainment). I'd like to see an end to credits and deductions save for people who make under $20,000 and medical and education costs.

Nope, we need to keep the mortgage interest deduction. It's saving my butt.

The thing is, the wealthiest of the wealthy know all the tricks (or their CPAs do) and end up paying far less than their share in income taxes. The lowest-income people are entitled to certain deductions and credits, so they pay little to nothing in taxes (and may even get money back from the IRS) - and this is appropriate, as they're already having enough trouble making ends meet. But the middle and upper-middle classes get screwed.

And while we're on the subject of tax reform, can we get rid of the damn marriage tax penalty? Seriously, my husband and I would be paying a lot less in taxes if we'd just continued living in sin.

[PeppyGPhiB]

Originally Posted by aephi alum

And while we're on the subject of tax reform, can we get rid of the damn marriage tax penalty? Seriously, my husband and I would be paying a lot less in taxes if we'd just continued living in sin.

Yeah, this was our first year as Married Filing Jointly, and we're getting back a lot less than we were hoping.

[Splash]

I hate the estate tax with a passion.

[honeychile]

Originally Posted by Splash

I hate the estate tax with a passion.

Me, too. Praise the Lord that my parents had a trust! Federal estate tax = 40%. State estate tax = 4%. We don't have to pay the Feds!

[preciousjeni]

I paid $10,200 (and some change) between state and federal. fml

[AGDee]

Originally Posted by preciousjeni

I paid $10,200 (and some change) between state and federal. fml

Above and beyond what you had withheld? or Total?

[preciousjeni]

Originally Posted by AGDee

Above and beyond what you had withheld? or Total?

Additional.

...because I was stupid and effed up taxes in previous years.

[Ch2tf]

x1 million

Single, out of school full time, no kids, no property definitely does suck though. Most of the people I know rake in the $$$ in refunds, but not I.

While I do get a refund, it is usually under $400 in total (federal and state). It's depressing

[knight_shadow]

Originally Posted by Ch2tf

x1 million

Single, out of school full time, no kids, no property definitely does suck though. Most of the people I know rake in the $$$ in refunds, but not I.

While I do get a refund, it is usually under $400 in total (federal and state). It's depressing

I got bumped into a new tax bracket last year, so $400 would have been a blessing lol

I guess I can't complain, though.

[BluPhire]

Originally Posted by Ch2tf

x1 million

Single, out of school full time, no kids, no property definitely does suck though. Most of the people I know rake in the $$$ in refunds, but not I.

While I do get a refund, it is usually under $400 in total (federal and state). It's depressing

Depends on your mentality.

A lot of people have the mentality that a refund is pretty much giving the government an interest free loan.

I say if you are an employee this is true.

As a business owner on the other hand, if you getting a refund, it means you had a lot of write offs and really need that extra money to make up for that shortfall.

[BluPhire]

Originally Posted by aephi alum

Nope, we need to keep the mortgage interest deduction. It's saving my butt.

The thing is, the wealthiest of the wealthy know all the tricks (or their CPAs do) and end up paying far less than their share in income taxes. The lowest-income people are entitled to certain deductions and credits, so they pay little to nothing in taxes (and may even get money back from the IRS) - and this is appropriate, as they're already having enough trouble making ends meet. But the middle and upper-middle classes get screwed.

And while we're on the subject of tax reform, can we get rid of the damn marriage tax penalty? Seriously, my husband and I would be paying a lot less in taxes if we'd just continued living in sin.

Which is why we have a CPA.

One of the best ways is do you all actually donate money to a church/non-profit org consistently.

That's one thing the rich does that a lot of middle class people with high tax bills seem to not do.

The second (if you are an employee) is actually play around with your withholdings.

Not saying it is the be all end all, but you will start seeing the results of not owing soo much at the end of the year.

[amanda6035]

Mortgage interest deduction is a total joke. If you have a $200,000 balance on your house at an interest rate of 5%, that’s $10,000 a year that you pay to the bank in interest. If your income puts you into a 25% tax bracket, then not having a mortgage (or interest to go with it) means you pay $2,500 to the government on that extra $10,000 in the form of taxes. So..... buying a house when you'd rather rent simply to claim a mortgage interest deduction is stupid, as is not paying off your home because you'd lose the deduction. Yeah, let's pay the bank $10,000 so I don’t have to pay the government $2,500....

If you dont have a mortgage and want to "save" that $2500 that you would owe to the irs, donate $10K to your church or a charity, and be done with it.