Question About Paying Taxes

Hi, Denise:
My experience is with many people who work "under the table" getting paid in cash so they don't claim it on their income taxes. I see many people
skimming.

People who pay their taxes and/or file their taxes want to do the right thing. Applaud those who are doing the right thing. There is enough for everyone if they have a desire to work for it.

In the Jamestown colony in Virginia, if people didn't work, they didn't eat.
Now a days, everybody eats, those who work and those who don't work.

Come to Oasis in Portsmouth and see the homeless getting fed everyday.
See all the Section IV houses that are going up. They are beautiful.
I see no O. going without in my state and my country.
just wanted to share my experience.
D.

IT IS JUST DISGUSTING.

fight the fight sista!! You have my heart!

I wanted to chime in...I gotta take Bro to school...But I will be back to answer this.....oh yes I will be back;p

Of course, people with smaller incomes will pay a higher percentage of their income for anything - rent, gas, taxes, etc. That is basic math and I personally do not think it is unfair. You are correct that everyone pays some tax or another...but 49.5% pay no federal income tax. That means that real close to 1/2 the country does not pay into our federal government.
These people are either neutral (receiving a tax refund of the amount they paid in annually) or they are receiving a tax refund GREATER than the amount they paid in.

Personally, what I think is that the United States of America is no longer a democracy. (Yes, I know we are "technically a republic".) It is completely unfair but perhaps more important UNSUSTAINABLE to have only 1/2 of the country paying for such services as: our military including veterans affairs, our court and justice system, federal law enforcement activities such as the FBI, federal correctional costs, medicare / medicaid, general science and basic research, our international development and assistance, our diplomatic corp, our postal service, the FDIC, disability insurance, the entire immigration system, disaster relief (FIMA), the Federal Aviation Administration, the TSA, etc, etc, etc.

We can not continue to have our federal government provide as much as it has been without spreading the burden across a larger percentage of our population! In 2009, a family of four making $50K did not pay into the system! That is no where near poverty! On the other hand, the top 10% of all federal tax payers paid more than 70% of all federal personal income taxes. Statistically, there is a point along the Laffer curve whereby the federal government can increase the tax burden and human behavior will intervene so that the government does not get an increase in revenue. Some say that the rich will hide their money through loopholes or overseas and some say that they will simply make calucations regarding how much income to take annually.

I think there is entirely too much being SPENT! I think we have too much duplication of services. I think there are too many people taking advantage including tax fraud, fraudulent disability claims, etc. I think our society has become O. that thinks it is great if you collect from Uncle Sam whereas it used to be incredibly shameful and embarrasing to collect from Uncle Sam. My great-grandmother did pay into the social security system. She never collected although she was eligible for over 20 years. Why? She considered it welfare and that was something you just don't do unless it is your absolute last resort.

I am all for a complete overhaul of the tax system!

Thanks for listening to my opinion.
C.

Oh, and Denise, tax paid on food is a state and local issue. In Florida, we pay tax on some foods. In Virginia, tax is paid on ALL food. I don't know what 8kidsdad in CA pays because I don't know the CA law but in many localities sales tax is paid on ALL food.

http://www.heritage.org/research/reports/2004/06/the-laff...

http://www.foxbusiness.com/markets/2011/09/21/buffett-dec...

http://www.msnbc.msn.com/id/18098378/ns/business-answer_d... (has a link to the complete federal budget from 2009)

http://finance.yahoo.com/news/Nearly-half-of-US-household...

I learned in statistics class in college that you can say anything you want and prove both sides of almost any issue with statistics.

Did you know if your state charges sales tax on food that people that pay with food stamps don't pay sales tax?

The taxes levied on the state and local level hit the poor on a higher % basis. People making $100,000 a year pay less taxes on an income percentage basis than someone making $20,000 per year when they buy the same package of pencils and pay $.10 cents sales tax.

But that's life. That's the way its always been. I personally don't feel we should have different sales taxes based on income. And it angers me that food stamp people don't pay sales tax on food like I do.

ADDED: And the poor could do much better if they would watch what they pay for things. I was in the store Saturday and this lady was paying for her groceries with food stamps (government credit card) and buying the fancy cat food that comes in the little cans. I was paying less for whole fryers than she paid for those little cans of cat food. And the salad bar at this grocery store charges $6.99 lb for items on the salad bar. And they sell everything on the salad bar for much less if you take it off the shelves. But then you won't get the real nice styrofoam tray (sarcasm!).

And on the cat food, she paid for that with a personal credit card, not food stamps. We choose how to spend our money. I read somewhere that for us to give a welfare famly O. ROLL of toilet paper costs $2 because of the federal, state and local workers pay, benefits, very generous retirements, and the cost of the buildings they work in.

Denise, you may not pay sales tax on food in PA, but you do in some other states. 17 states charge sales tax on food and 46 states charge sales tax on some food (like salad bar and soft drinks). And in California, pro-welfare doctors will call you "disabled" for a stubbed toe or because you are overweight and "can't stand to be on your feet". Your $5 figure is way off.
OH, Denise NOW you say $5 PER PERSON per day. $5 per person per day is EASY to do. My wife and I eat at home and go out to dinner occasionally (once or twice per month) on $5 per person per day.
BTW, last week I was sick and my grandkids were sick so no O. came over for Sunday dinner. I spent $28.90 for O. week worth of fresh fruit and vegetables and other food for a week. My $5 per day per person would have allowed me $70 for that week's worth of groceries.

Good luck to you and yours.

I think life would be easier if there were just sales tax. So that those of us who don't buy huge unnecessary big screen tvs and expensive cars don't have to pay so much tax.

or if you're going to tax people on their income, why not make it fair and tax everyone at the same rate -- lets say 10% to make the math easy. So if Mr.Rich makes a million a year he pays 100,000 in taxes. Mr. Poor makes 15,000 a year, he pays 1,500 a year. I don't think taxing the rich MORE makes any sense. It does not, imo, encourage anyone to really want to be honest or work hard. I think it will make the rich 'hide' what they have (ie, Biden registering his boat in a different state?, people accepting cash for services, then not claiming it on ther business' income, etc).

I dunno. I am no tax expert. But I do think that taxing should be fair.

oh and as far as taxes on food goes -- soda is taxed. Bread is not. Generally "healthy" items are not taxed. "Junk" is mostly taxed (candy). Maybe that's just Texas. I dunno. But you can buy soda and bread and candy and all food (not prepared, like the hot deli) with your foodstamps here in Texas. Some are trying to get legislation to change so that only healthy items can be purchased using your foodstamps (no candy, no soda, etc).

The poor have a HUGE burden. Most of my tenants are on Social Security or Supplemental Security Income. SSI got lowered by about 15 bucks earlier this year, SS has not had a cost of living raise for two years. Everything commodity wise has increased in cost or tax. It's HORRIBLE what the poor are going through. Welfare also cut off dental work for adults. Dental health is so important. I'm not talking about straight, brilliantly white teeth, I'm talking gum disease that is bad for your heart and teeth having to fall out on their own, and people not being able to eat correctly due to bad or missing teeth. It's really ridiculous what is happening to the poor and down trodden in our country.

I think income tax is a racket in itself - we get double taxed. We get taxed when we earn money and we get taxed when we spend money (most stuff). I think they need to do away with income tax and just tax people on purchases. That would lift some burden off of the poor, they would not be taxed for earning, buying groceries or paying most bills.
We should not be penalized for earning money!!!!

I'm sending you a wooden spoon for Christmas this year you little pot stirrer!

Humph, no O. on the PLANET pays more taxes than a NYS smoker! Regardless of income.

Yall can thank us next time you see us huddled together out in the pouring rain puffin' away!

tehehe

Sigh, I don't know what the answer is Denise, but issues like this O. keep me leaning a little to the Right, you know?

:)

Sorry, just sayin...

**And what about property taxes too? Generally the poor do not pay property taxes either, but SOMEBODY pays taxes on the property they live on. So can we figure that into the 'inequity' as well?

Okay, I know I will get slammed for this,... but... so what? Are you saying that the higher earners pay less actual tax for the SAME PRODUCTS? No, I don't think so. So if the tax on a box of pencils is 7¢, and the poor family buys a box of pencils and pays 7¢ tax, and the "rich" family buys a box of pencils and pays 7¢ tax, then what is unfair about that? You essentially are saying that it is unfair for some people to make more money than others.

ETA: My point is that it is all relative to which way you look at it. You want to look at it from the perspective of percentage of income. Try looking at if from the perspective of actual percentage paid... (and you did reference "other" taxes including sales tax).. In my state sales tax is 4%, plus the local added sales tax, which is about 3%. So everyone that buys a pencil or whatever it is, pays the same tax RATE. The fact that some earn more doesn't make it inherently unfair. We all pay the same gas tax, too. I happen to use a lot of it, so I pay a LOT of taxes on gas for mine and my husband's automobiles. It is a high percentage of my income compared to a lot of other people's income/gas tax ratio. Should I get a lower rate on my gas tax because of that? My husband can't go to work without it. He has a long commute. Well, but that is our choices to have to make that commute, you say, right? Ahhhh..... now we see that our choices DO have something to say in this little discussion, don't we? WE could make different choices about things to affect our circumstances (say what you want about food being a necessity, but having to feed a houseful of kids with different dads and never having been married to a O. of them or expect the dad to provide for his offspring--or planning and purposefully having kids when you cannot afford to feed/clothe them, uh.. yeah.. those are choices, too.) But to get back to the gas price part of it... we still pay a much higher percentage (comparatively speaking--and that's really all you are doing is comparing the rich to the poor--class warfare stuff) of our income to gas taxes. The guy who lives a block from his job and walks, so only drives a vehicle for 3 miles once a week pays almost NONE. So should we get to pay a lower tax rate on OUR fuel, because it is a higher percentage of our income than the other guy's? I don't see that happening. And it shouldn't. But for our household, gas is a NECESSITY. Otherwise, we'd be on the dole, too... because hubby wouldn't have a job anymore.

Christine S answered this very well. Where does it end? Half the country already doesn't pay income taxes and now they shouldn't have to pay sales tax either?? So the "rich" have to pay the income taxes and the sales taxes to fund yet more programs for the "poor" who now don't have to pay anything in taxes based on what you're implying? Talk about taking away incentives. In order to try to balance budgets, then sales taxes would have to be increased for the "rich" which will make them cut back on spending which will further cut sales taxes which will further cut revenues to the state. Where is all the money for all these entitlement programs supposed to come from? From the "rich" more and more. Again, talk about taking away incentive. The top 1% of taxpayers already pay almost 30% of income taxes!! That's THEIR MONEY THEY EARNED. It's not going to be worth working anymore. It'll be way easier to collect benefits and not have to pay a dime in taxes. Communism here we come...

I was okay with the first two 9s but adding a sales tax does put a heavier burden on the poor.

The problem with that data is some, and I do not know how many because there is no data collected, only earn that because to earn more will cause them to lose their welfare and subsidies.

The other problem is when you look at those income numbers they do know reflect income from all other sources, just taxable income. I will use my numbers from 2010 since I was still in school and unmarried. My for AGI taxable income was 28,000, my taxable income was 11,000. The deductions were my tuition, my daughter's tuition, mortgage interest and real & personal taxes. Where do you think I fell in your data?

My income from all sources, in other words adding in everything that comes into my household but is not taxable is 65,000. I paid no taxes last year. I am not unusual. Do you now understand why I feel the tax system is broken.

Like Buffet I am not going to voluntarily pay taxes that are not required of me.

Oh I paid 520 in state taxes which may sound bad if you look at my taxable income but when you look at my income do I really have it so bad?

It is broken, someone needs to fix it. Doesn't sound like Cain is the guy to do it.

Ohh I just realize I am better than Buffett, I actually released my tax information. :(

Oh if you go directly to the IRS website you will find that 4% is inaccurate.

Kinda like squeezing blood out of a turnip, eh, Denise? :)

I think if I could figure out how, I'd rather pay the 4% and make 229,000 or more. Welll.... What I really mean is that I'd be happy to pay 11% and make 229,000!!!!

Enough already! It's O. thing to come on here and ask a valid parenting question...it's another to always come on here with your political rants. We know where you stand on the issues...whether we agree or not it's okay. We all have to have different opinions or the world would be boring. But COME ON!

The average income for a family of four is around 50K per year and the average health care policy is around 15K then who exactly are we calling poor? The articles below show where the remaining 35k goes for most families. Exactly what part of their income should go to paying more (or according to some of you) any taxes? The definition of poor should not be based on income level, we have to take into account what it costs a family to survive in 2011.
I don't have to run through a budget for you ladies the articles below do a good job of that I just wanted to point out we are arguing about scraps. Some of you think we should squeeze the middle class and poor HARDER???!!! Children are hungry for God's sake.
There are no statistics to explain what it must feel like to have to choose between a needed doctor visit and food. How about choosing between rent and clothing for your kids? I mean really, some of you should be ashamed of yourselves.
If we spend our time looking for the food stamp abusers and the budget busting grocery wasters we will miss the thousands of hard working Americans who just can't make it here anymore. Open your eyes people, no O. is trying to steal all your money, just ensure that the real American Dream isn't totally dead and that in this great country we don't let kids go hungry and families homeless.

http://www.businessinsider.com/how-does-any-american-fami...

http://theeconomiccollapseblog.com/archives/17-facts-that...

Stephen Colbert answered this question much better than I could!

http://www.dailykos.com/story/2011/09/21/1018815/-Stephen...!

Yeah, so out of that almost 50% of us who don't pay taxes, 1/2 make less than $20k per year, and another quarter are elderly people trying to make it on SS payments. Buy hey, 95% of us own a refridgerator!! If we can afford luxuries like that, we can pay more...

I love you Christine S.!!!!