Tax cuts explained in simple language.

Yes...The trick is in the ability to reduce your net income compared to your gross income. Thats where the wealthier people make out. The stats HomeLAN showed are what they paid on their adjusted income after taking advantage of all the loopholes. The rest of us don't get to make too many adjustments and end up paying tax on a much higher percentage of our gross.

Plus the lower income sector puts 100% of their income right back into the economy. Not true of the wealthy....Maybe we should only tax monies that aren't returned to the economy (spent).
 
freako104 said:
gonz could she have gotten it back because she has a son she has to support and couldnt afford to?
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It's not that she got back HER money, it's that she got back HER money & MY money & GATOs money and... Her refund was larger than what she paid all year.

1040EZ-for those entering the workforce

1040A-for adults

1040-for upper middle class & rich adults

1040 & Schedule C-for rich & entrepeneurs
 
I have to do a schedule C and I would fit in the D.) none of the above category.
 
Gonz said:
... Her refund was larger than what she paid all year.
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i thought the refund was always smaller? howd she get that then even with her son?



thanks squig for answering my question i dont know too much about taxes and all :)
 
freako104 said:
i thought the refund was always smaller? howd she get that then even with her son?
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not when you're poor & have a kid(s)...she'd pay (roughly) 1200 & get back over 3K :grumpy:
 
Squiggy said:
Plus the lower income sector puts 100% of their income right back into the economy. Not true of the wealthy....
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Really? You don't call putting cash into investments to be used for business growth contributing to the economy? I assure you, wealthy people who don't invest (read: prompt economic growth) don't stay wealthy long.

Of course, you'd have to look around that whole "the wealthy are evil" thing to see that...
 
This also fails to mention who actually owns the restaurant... ;) (just throwing some more gasoline on the fire. Don't mind me. :D )
 
Squiggy said:
The stats HomeLAN showed are what they paid on their adjusted income after taking advantage of all the loopholes
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Thanks Squiggy, got busy at work and couldn't come back, but that was the point I was trying to make (not very well I'm afraid).
As for Gonz and his sister, Yes the system is corrupt (it's run by the government), people who don't need it take advantage of it, people who don't deserve help get it. Are any of these good enough reasons to refuse to help the people who do need it? I don't think so, many of you apparently do.
 
chcr said:
Squiggy said:
The stats HomeLAN showed are what they paid on their adjusted income after taking advantage of all the loopholes
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Thanks Squiggy, got busy at work and couldn't come back, but that was the point I was trying to make (not very well I'm afraid).
As for Gonz and his sister, Yes the system is corrupt (it's run by the government), people who don't need it take advantage of it, people who don't deserve help get it. Are any of these good enough reasons to refuse to help the people who do need it? I don't think so, many of you apparently do.
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In my opinion, yes. Dismantle the whole program, and start from nothing. Case by case basis only, and only if they are actively trying to get out of their predicament. Time limit of 2 years.

Everybody has choices in life..good and bad. If you make a bad choice, it's not my fault, and I shouldn't have to support your ass while you grovel in your own self-loathing, or slothfulness.
 
Gato_Solo said:
Everybody has choices in life..good and bad. If you make a bad choice, it's not my fault, and I shouldn't have to support your ass while you grovel in your own self-loathing, or slothfulness.
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Again Gato, I agree 100% (BTW my sister takes shameless advantage of the system. She's "disabled" but she doesn't have any trouble getting on a fucking barstool). I just worry because I know people who need the help. Nothing to do with bad choices. Again, I say the government must deal with this because no one else would.
 
HomeLAN said:
Squiggy said:
Plus the lower income sector puts 100% of their income right back into the economy. Not true of the wealthy....
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Really? You don't call putting cash into investments to be used for business growth contributing to the economy? I assure you, wealthy people who don't invest (read: prompt economic growth) don't stay wealthy long.

Of course, you'd have to look around that whole "the wealthy are evil" thing to see that...
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There are ways to invest and not pay taxes because of it. And didn't we just wipe out the capitol gains tax? Why shouldn't it be taxable? I don't begrudge people their wealth. But to argue that they are treated unfairly kinda rubs me wrong... How many here were glad to see us spend the megabillions on getting rid of Sadam and then piss and moan about spending a fraction of that amount to help the needy. If you want to do anything substantial, Get rid of corporate welfare. Its a much heftier sum. And as far as welfare fraud goes, my bet is doctors and HMOs are the biggest culprits...The whole system is bad. I just can't agree with the wealthy wanting the same rates as the not so wealthy. Unless they give up all those loopholes, that is. And you know that won't happen.
 
I disagree with a lot of what has been said in this thread (and I'll bite my tongue and not lash out against this "rich are evil" sentiment), but there is one thing I completely agree with... our tax system is entirely too complex and should be completely overhauled.

Yep - the tax law is tremendously long, and does have some places where it can be taken advantage of. I'm single, don't own a house, have no children, no personal business, gave no money to charity last year (other than a few dollars here and there to highway patrol and fire departments... not enough to worry about reporting)... in short, not one damned thing I thought I could claim a deduction for. Yet, by having a "competent" lawyer file my taxes with the long form, I received a refund. Not huge, but not insignificant either.

IMO, there shouldn't be such loopholes for me to take advantage of. The tax law should be short, clear, and air tight. Corporate tax law is hideously complex, not always fair, and full of holes that allow businesses to "sort of" legally exploit the law.

Do I think it is ethical for me to exploit every oddity that the code allows? Well... yes. Like chcr, I think the middle class is taxed too heavily, and if I get a little bit back, it's money I feel I shouldn't have paid in the first place. When someone champions a simplified tax structure I'll be in the front of the line supporting them.

Some people aren't going to like it though... any real progress is going to give the middle, upper-middle, and upper class relatively larger breaks; at least in raw percentages (may not be so different for some after reading the fine print... what little of it there may 'hopefully' be).
 
And didn't we just wipe out the capitol gains tax?
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Uhhh, NO! Please get your facts straight. The dividend tax hasn;t been repealed, either. Only the first $500 has.

Personally, I favor a flat tax or use tax on a straight percentage basis. Loopholes? What fucking loopholes?

As for HMO's (and insurance in general), you're preaching to the choir. Federalising it, however, ain't the answer. I only wish I knew what was.
 
HomeLAN said:
And didn't we just wipe out the capitol gains tax?
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Uhhh, NO! Please get your facts straight. The dividend tax hasn;t been repealed, either. Only the first $500 has.
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Actually, the first $500 thing is just the newest proposal in the Senate (I believe), and that has yet to pass either. Bush's original $700+ Billion package has been butchered back to around $350 Billion, and the dems are still playing hardball on that one. When all is said and done, we will probably still be paying double and triple taxes in some cases, like on dividends.

I say tax everyone once, tax them equally, and make sure the laws are simple and free of holes.
 
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