Read this, Not Political Flaming Please. Taxes

Wendy

Joined Mar 24, 2008
23,421
That one isn't really hard. If someone with a large stash that they could never spend in 10 lifetimes of extravagant living pays less than 1%, and anyone with a small stash pays 30% who is struggling with basics, then there is something wrong. The pain is not being shared equally. This part is a no brainer. At some point, it becomes about power, raw and simple.

So far this thread has stayed civil. Thank you.
 

Thread Starter

maxpower097

Joined Feb 20, 2009
816
There are three problems with this argument. First, we haven't had conscription for about 40 years, so everyone in the armed forces today is there willingly..
Is that why military recruiters are triple in places like Detroit, St Loius, Memphis, etc.. . Goto any poor city and you'll see military trolling the malls looking for poor kids with no futures. They even have the power to make arrests go away. I say it her, I got popped on some charges. Went to court and the judge read our a list of names saying Everyone that qualifies for MIP(Misdomenor Intervention Program) FIP(Felony Intervention Program) or is enlisting in the military goto this room. Lucky my name was called and they let me do community service and payed some fines and got time served. All the ghetto bangers were all enlisted in the military. They were told upon completion of 1 year in the military their charges would be wiped clean and they were free to head to boot camp. Then take into account the massive problem the military is having with gangbangers in the warzone. You can goto Afganistan or Iraq and see the same MS-13, Latin Kings, Bloods, Crips, etc...tags all over the walls everywhere. So to say they are there voluntarily is a pretty big joke.
 

JoeJester

Joined Apr 26, 2005
4,390
There may have not been a multitude of available choices ... and sometimes there are just two ... it's still a choice.

It's just like all the other choices they made in their lives ... and those that I made.
 

WBahn

Joined Mar 31, 2012
30,060
That one isn't really hard. If someone with a large stash that they could never spend in 10 lifetimes of extravagant living pays less than 1%, and anyone with a small stash pays 30% who is struggling with basics, then there is something wrong. The pain is not being shared equally. This part is a no brainer. At some point, it becomes about power, raw and simple.

So far this thread has stayed civil. Thank you.
Two points: First, this is mixing apples and oranges. Taxes are not based on your stash, big or small (until you start talking about inheritance taxes). So two people with the same AGI and other items on their tax form will pay the same taxes even if one has a stash of $10 million and the other has a stash of $10. Second, as I have shown with hard data, people that earn more pay considerably higher tax rates than people that earn less. Can you look hard enough and find anecdotal stories about isolated cases where that is not the case? Sure, and most of those have very straightfoward explanations in which the specifics of that case make it quite reasonable. Are the a few rare instances where that is not case? Almost certainly. But should we make policy based on anecdotal stories and rare and unusual cases?
 

Thread Starter

maxpower097

Joined Feb 20, 2009
816
Two points: First, this is mixing apples and oranges. Taxes are not based on your stash, big or small (until you start talking about inheritance taxes). So two people with the same AGI and other items on their tax form will pay the same taxes even if one has a stash of $10 million and the other has a stash of $10. Second, as I have shown with hard data, people that earn more pay considerably higher tax rates than people that earn less. Can you look hard enough and find anecdotal stories about isolated cases where that is not the case? Sure, and most of those have very straightfoward explanations in which the specifics of that case make it quite reasonable. Are the a few rare instances where that is not case? Almost certainly. But should we make policy based on anecdotal stories and rare and unusual cases?
First yes thats the point. If they both made 10 million a year and one saved it and one blew it on hookers and blackjack I fully think they should pay the same taxes reguardless of how finacially smart or responsible they are.

Second Yes of coarse the top 1% is gonna pay more in taxes then the lower guy, but its the percentages that screw everyone up. That one persons that made 2 billion dollars this year is taxed 1% = 20million. Now take that 2 billion dollars and break that into 1000's of normal jobs taxed at 30%. Then that 2 billion in income brought in 600 Million. Thats where are Gov and we are getting screwed. So reguardless if one person makes 2 billion they pat 20 million, if the gen pop makes 2 billion they pay 600 million in taxes. Thats quite a difference and the main reason were in such financial debt. This is serious money when you figure that 1% takes over 70% of our income.
 

WBahn

Joined Mar 31, 2012
30,060
Second Yes of coarse the top 1% is gonna pay more in taxes then the lower guy, but its the percentages that screw everyone up. That one persons that made 2 billion dollars this year is taxed 1% = 20million. Now take that 2 billion dollars and break that into 1000's of normal jobs taxed at 30%.
And it's the percentages that are being screwed up right here. Where are you getting this notion that someone making $2billion a year is only paying 1% in federal income tax while people working normal jobs are paying 30%? I have given the actual numbers direct from the source, namely the IRS data base.

From Post #21:
Here is perhaps the single most relevant look at these numbers. This shows percentage of people that paid the effective federal income tax rate (i.e., the fraction of AGI) showed in the leftmost column by returns in each of the AGI ranges shown in the top row.

tax(%) | <$50k |$50k-$100k |$100k-$200k |200k+
0 |60.0 |9.0 |1.1 |0.5
0-5 | 20.8 |22.2| 6.1 |1.2
5-10 | 17.1| 42.1| 27.2| 2.1
10-15 | 2.1| 20.1| 46.5 |10.0
15-20 | *| 5.6 |16.6 |37.2
20-25 | *| * |2.5| 30.4
25-30 | *| *| *| 16.7
30-35 | *| *| *| 1.8
* - means less than 0.05%

As just one data point, notice that 98% of people making less than $50k pay 10% or less (with 60% paying nothing). For people over $200k, more than 86% pay more than 15%.
What about these thousands and thousands of people working normal jobs and paying a 30% tax rate? For people making under $50,000 AGI (which was almost exactly 2/3 of all the returns filed), out of 92,888,972 such returns, only 2,065 paid 30% or more; In other words, only 0.002% of people in the bottom 66% of the population paid 30% or more of their AGI in federal income taxes. At the other end of the spectrum, of the 3,924,489 returns with an AGI of $200,000 or more (the top 2.8% of all returns), 73,725 of them (1.9% of those returns) paid 30% or more.

Here are the income breaks for this same year (2009 - the latest year for which the data has been published) along with the average tax rate paid by people at or above that level (except for the last row, which is the average rate paid by everyone else).

Top | Floor ($) | Avg Tax Rate
1%|343,937|24.0%
5%|151,643|20.5%
10%|112,124|18.1%
25%|66,193|14.7%
50%|32,394|12.5%
Bottom 50%| | 1.9%


This is serious money when you figure that 1% takes over 70% of our income.
Again, where are you getting these numbers?

The top 1% of all tax return filers in 2009 had a combined total adjusted gross income of $1,324,572 million. This was less than 17% (not 70%) of the total AGI for ALL returns of $7,825,389 million.

Now let's take a moment to look at the "filthy rich", namely the top 0.1%. So this group is made up of around 140,000 returns on which the AGI is $1.4million or more. This group paid an average tax rate of 24.3% in federal income tax and paid 17.1% of all personal income taxes that year Their combined income amounted to 7.8% of the national total.
 

Thread Starter

maxpower097

Joined Feb 20, 2009
816
The IRS.... Your not taking into account assets, foreign income, investments, stock options, etc... Your just looking at W2's which are BS when your dealing with the megawealthy
 

WBahn

Joined Mar 31, 2012
30,060
The IRS.... Your not taking into account assets, foreign income, investments, stock options, etc... Your just looking at W2's which are BS when your dealing with the megawealthy
Not true. I would really love to know where you are getting this information from.

Look at IRS Form 1040.

Line 7 - W-2 (salaries, wages, tips, etc).
Line 8 - Interest income
Line 9 - Dividend income
Line 10 - Taxable refunds
Line 11 - Alimony
Line 12 - Business income
Line 13 - Capital gains
Line 14 - Other gains
Line 15 - IRA distributions
Line 16 - Pensions and annuities
Line 17 - Rental real estate, royalties, partnerships, S-corporations, trusts, etc.
Line 18 - Farm income
Line 19 - Unemployment compensation
Line 20 - Social security income
Line 21 - Other income

The above is from the 2009 form, since that is the year for all of the data being discussed. The 2011 form for this section is basically identical.

ASSETS: in general, the federal government does not tax assets that you already own and did not sell during the year (you are, however, taxed on any income derived from them). That is not true when you die and pass those assets on to your heirs. This is that same as your savings account. You make money from some source, pay taxes on it, and then put it into a savings account. That's an asset. You are not taxed further on the value of that asset by the federal government but the interest earned on it is subject to being taxed. The same is true if you buy a house or a car or a plane or a cabin or a company. Some states tax some assets yearly -- these are known as property taxes.

FOREIGN INCOME: IRS Pub 54: "If you are a U.S. citizen or resident alien, your worldwide income generally is subject to U.S. income tax, regardless of where you are living. Also, you are subject to the same income tax filing requirements that apply to U.S. citizens or resident aliens living in the United States." There are a few special rules and exceptions here and there as a result of treaty obligations with other countries. It also sometimes applies to non-resident aliens; my wife is a foreign national and while she was a non-resident alien living in her home country awaiting approval of her visa so that she could step foot on American soil, we had to report and pay taxes on her income that she made there.

STOCK OPTIONS: Stock options are taxed one of three ways, on the fair market value when they are received, on the fair marked value when they are exercised, or on the fair market value when they (or the stock purchased when exercised) are sold. In each case, you exclude the amount (if any) you paid for the option. The taxable amount may be treated as a capital gain or as ordinary income depending on the specifics.

INVESTMENT INCOME: Investment income is reported on whichever line it appropriate to the investment. It would normally be reported on 8, 9, 12, 13, 14, or 17.
 
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Brownout

Joined Jan 10, 2012
2,390
The point is that by arguing for policies based on group identity, then you open the door for all other policies based on group identity.
Not really. What I'm talking about is paying your fair share. The very vehicle that decreses parcipitation in the armed forces, namely wealth, is the same that can fund operations. If the rich don't participate in physical presense, then they can help to fund operations. That has nothign to do with politics. BTW, I doubt there is any data on political affiliation for the service.

Fine. How do you propose to measure when "fair" has been achieved?
What's 'fair' in not necessarity a precise measure. It is fair that the rich pay higher taxes to participate more fully in perserving their own liberties. Would you not say it's 'fair' for a day's work to be paid a day's wages? If so, then what is a day's wages? The details are worked out by the parties involved.
 

strantor

Joined Oct 3, 2010
6,798
What's 'fair' in not necessarity a precise measure. It is fair that the rich pay higher taxes to participate more fully in perserving their own liberties. Would you not say it's 'fair' for a day's work to be paid a day's wages? If so, then what is a day's wages? The details are worked out by the parties involved.
here's an idea: we'll establish tax brackets, just like we have now, and let the people in the fist bracket (poverty) decide the tax rate for the people in the second bracket (low income). Those people (second bracket, low income) get to decide the tax rate for the 3rd bracket (middle income), and so on, up through mid-high income, high income, celebrity-high income, and elite income. That way everybody everybody will be content that their version of "the rich" paid their perception of a "fair share".
 

Thread Starter

maxpower097

Joined Feb 20, 2009
816
Also your numbers are whats owed, not paid. They owe this money but they can use it as bribes and a host of other deductions. So while it may say they owe 2 million this year. They gave 2 million to their personal causes instead of paying the gov.
 

WBahn

Joined Mar 31, 2012
30,060
BTW, I doubt there is any data on political affiliation for the service.
There's a lot of data on this. The enlisted military overall tends to run about even between Republican, Democrat, and other/unaffiliated. However, the officer corp is about 10:1 in favor of Republican. It varies somewhat from service to service, but is pretty stable over time.

What's 'fair' in not necessarity a precise measure. It is fair that the rich pay higher taxes to participate more fully in perserving their own liberties. Would you not say it's 'fair' for a day's work to be paid a day's wages? If so, then what is a day's wages? The details are worked out by the parties involved.
Part of the problems are that the details are NOT worked out between the parties involved. Parties A, B, and C work out between them how much Parties D and E will pay.

And while you don't have to have a precise measure, you need a quantitative measure as soon as you (that's a generic "you", BTW) say that Person A isn't paying their fair share. Well, how can you claim that what they are paying isn't their fair share if you can't say what their fair share is! How can you possibly make policy changes to make them pay their fair share if you can't determine what their fair share is! It's actually far worse than that. A huge number of people declare that the rich aren't paying their fair share despite not having a clue as to what share they are currently paying, fair or not.
 

WBahn

Joined Mar 31, 2012
30,060
Also your numbers are whats owed, not paid. They owe this money but they can use it as bribes and a host of other deductions. So while it may say they owe 2 million this year. They gave 2 million to their personal causes instead of paying the gov.
Huh? This makes no sense. It is the tax liability owed and, in virtually every instance, paid. It was what was owed after all other deductions and credits. If you owe the IRS a million dollars, they WILL come after you. If someone commits tax fraud and doesn't report a bunch of income or claims a bunch of bogus expenses, then the tax liability that is computed will be artificially low, but whatever is computed is the amount that is to be paid and, again, in almost all cases is the amount that is actually paid.
 

Brownout

Joined Jan 10, 2012
2,390
There's a lot of data on this. The enlisted military overall tends to run about even between Republican, Democrat, and other/unaffiliated. However, the officer corp is about 10:1 in favor of Republican. It varies somewhat from service to service, but is pretty stable over time.
I don't believe it. Never in my long service was I ever asked what party I belong to.



Part of the problems are that the details are NOT worked out between the parties involved. Parties A, B, and C work out between them how much Parties D and E will pay.

And while you don't have to have a precise measure, you need a quantitative measure as soon as you (that's a generic "you", BTW) say that Person A isn't paying their fair share. Well, how can you claim that what they are paying isn't their fair share if you can't say what their fair share is! How can you possibly make policy changes to make them pay their fair share if you can't determine what their fair share is! It's actually far worse than that. A huge number of people declare that the rich aren't paying their fair share despite not having a clue as to what share they are currently paying, fair or not.
How can you say a day's wages if you can't define what a day's wages are? It's not a simple answer, but rather a method of educated guesses, feedback, adjustment, compromise, and so on. The wealthy do have disproportionate influence over laws that are enacted, so it's not really a matter of other groups deciding for them.
 

WBahn

Joined Mar 31, 2012
30,060
here's an idea: we'll establish tax brackets, just like we have now, and let the people in the fist bracket (poverty) decide the tax rate for the people in the second bracket (low income). Those people (second bracket, low income) get to decide the tax rate for the 3rd bracket (middle income), and so on, up through mid-high income, high income, celebrity-high income, and elite income. That way everybody everybody will be content that their version of "the rich" paid their perception of a "fair share".
I don't know if this would be much better or not. Here would be a rather simple way to do it, though: Ask people what the income tax rate should be for people that make twice what they make. Then, for any given income, average the responses from those people that make between 25% and 75% of that amount.

Here would be an interesting poll question:

Would you support having your federal income tax rate be established by what is perceived to be your fair share among those people who make between 25% and 75% of what you make?

Example: If your income is $100,000, then people making between $25,000 and $75,000 will determine what fraction of your income you should pay in federal income tax, while if you make $40,000, then your tax rate will be determined by those people making between $10,000 and $30,000.

It would also be very interesting to ask people what they believe the fair tax rate would be for people earning twice what they earn, as well as ten and one hundred times what they earn and even one-half and one-tenth.

While an interesting notion, though, I don't think it is good. We are where we are largely because too many people believe it is okay to pass laws that apply to other people but not themselves, and I'm not just talking about tax rates. Congress routinely passes laws and exempts themselves, either explicityly or in practice. Just look at those workplace posters that are required to be posted where you work and you will find several examples.

Frankly, I think we would be in a lot better shape if we could simply require that whatever legislation is passed must apply equally to everyone.
 
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