Today I love the IRS

[froglady]

With my senerios above I was just trying to show that a person who makes $50000 can reduce the amount he gets taxed on by taking off 401k and itemizing. By doing so, that 50000 becomes $31000 very quickly and thus a large return is had.

There is a big difference between someon who actually makes $31000 and pays taxes on that and someone who makes $50000, but only pays taxes on $31000 because of deductions.

And again, how much (or what percentage) of his income is taken by the government, compared with someone who makes $25,000? As I already stated, the government is returning some of B's OWN money back to him. If the IEC makes it possible for A to have ALL of his money returned, so be it. He obviously needs the money more than B. If it allows A to have ALL of his money returned, plus more money, it's a "gift."

 

[MagicKingdom05]

If you have two people one making $30000 and one making $50000 and you do a flat tax of 10% the person who is making 40% more than the other is only paying $2000 more a year in taxes.

Those who make more should be taxed more. I know that since I have been working at my office since college (6 yrs), my tax bracket has gone up and up because I make more and more each year and I know that's just life. Would I like to pay the same % I did 6 years ago sure, but I know the more you make the more taxes you pay.

 

[N.Bailey]

With my senerios above I was just trying to show that a person who makes $50000 can reduce the amount he gets taxed on by taking off 401k and itemizing. By doing so, that 50000 becomes $31000 very quickly and thus a large return is had.

There is a big difference between someon who actually makes $31000 and pays taxes on that and someone who makes $50000, but only pays taxes on $31000 because of deductions.

What in the world are you talking about? EVERY American who files gets a standard deduction at minimal. It's not only those making $50,000.

Everyone also gets 1 exemption. I don't think you can qualify for EIC if you don't have kids (can you?). If that's true, anyone getting EIC has at minimal 2 exemptions.

EVERYONE gets these deductions, everyone!

Your argument is ludicrous, plain and simply ludicrous.

 

[froglady]

If you have two people one making $30000 and one making $50000 and you do a flat tax of 10% the person who is making 40% more than the other is only paying $2000 more a year in taxes.

Those who make more should be taxed more. QUOTE]



I didn't go on the assumption that they were both being taxed 10%. I KNOW that B paid almost 10% of his income to Uncle Sam. I'm just trying to find out what percentage A paid.

Also, WHY should someone who earns more automatically pay a higher percentage of his income to the government? You state it as a given that it SHOULD be that way. (and is) Why? And please don't come back with "they're luckier, more fortunate, etc." There are a few "fortunates" who did nothing to earn their money but inherit it, and others that were born into a situation (health, family, etc) who have insurmountable obstacles that keep them in poverty, but the majority of people made life choices that directly or indirectly affect their income.

 

[Toby'sFriend]

don't think you can qualify for EIC if you don't have kids (can you?). If that's true, anyone getting EIC has at minimal 2 exemptions.

yes you can. But the income levels without any qualifying children are extremely small and the maximum EIC is also much smaller. I can't remember the exact numbers.

If the IEC makes it possible for A to have ALL of his money returned, so be it. He obviously needs the money more than B.

and that is the problem with taxation. Assuming that you can just take money from one person because another person is poorer is ---- Robin Hood.

 

[Alicnwondrln]

But in the OP's case the money is not supporting her family. She's not paying bills with it or putting it away for her children's future. She's:

buying a $1700.00 LCD TV - luxury
buying a new car stereo - luxury
buying a new sectional sofa - luxury (a cheaper one could be found)
a night at the Love Shack with her BF $179.00 - $209.00/night plus "extras"
a night at the Jungle Room with her BF $279.00 - $339.00/night plus "extras"

http://www.disboards.com/showthread.php?p=11167260#post11167260
vanity plates - luxury
GPS systems - luxury
DSL - luxury
pool tables - luxury
2 vehicles - luxury
ski weekends - luxury

I don't see the difference between the OP and the politician with his $10,000 shower curtain or the multi-million dollar bathroom. BOTH are spending tax dollars on luxuries they cannot afford. I'd rather not support either.

Single mothers or (truly) low income families who desperately need this money to get by are a different story entirely. That is not the case here.

wow this is crazy

 

[summerrluvv]

I don't think you can qualify for EIC if you don't have kids (can you?). If that's true, anyone getting EIC has at minimal 2 exemptions.

Yup, sure can. Your income has to be less than 11k a year though (or something like that).

 

[always quiet]

What I don't understand is why many of the replies here since to think that people who qualify for the EIC are lower than pond scum? Yes, some people take advantage of the system by living with their partner and not wanting to marry because they would lose out on tax credits, then spend the EIC money on luxury items or they just blow it. This is not the way many people who qualify for this credit use this money. And before anyone starts saying that it's not a fair tax credit, I seem to remember a couple years ago there being $1000 sent to the higher income people that everyone did not receive. IMHO, the IRS is doing the best they can considering the wide range of incomes, the tough economy.......and the basic feeling that they are no good!

Also, seeing how much money the US gives to rebuild areas of the world that our military has damaged in war,(like countries who are hell bent on destroying us!!) why should any US citizen feel guilty about accepting money from our government?

 

[summerrluvv]

a

 

[MagicKingdom05]

Sorry about the confusion on what I was trying to get across, I'm a little under the weather and when I went back and read what I had posted I realized that it wasn't clear what I was trying to get across and I appoligize for that.

It seems that many on here are upset the EIC is even available because it's not fair to everyone. What I was trying to show is that there are lots of tax breaks and things like that in the tax code that isn't fair to everyone. Some help those who make less money and some help those who make more money. Up until last year I could only take the standard deduction while others were able to itemize and take property tax and morgage interest off there taxes. Trust me I was jealous of those people who got $4000 returns while I was only getting back $1000 if that. Just like with those who can take the EIC credit, some of us can take other tax breaks like itemizing and things like that and use those to our advantage.

As far as the flat tax issue goes, a few people mentioned about getting away from tax returns all together and doing a flat tax accorss the board. After looking at it, that might actaully be the best way to go, because everyone would get taxed the same %, but the amount would be based on much they made.

Once again I apologize for not being more clear on what I was trying to get across.

 

[N.Bailey]

What I don't understand is why many of the replies here since to think that people who qualify for the EIC are lower than pond scum? Yes, some people take advantage of the system by living with their partner and not wanting to marry because they would lose out on tax credits, then spend the EIC money on luxury items or they just blow it. This is not the way many people who qualify for this credit use this money. And before anyone starts saying that it's not a fair tax credit, I seem to remember a couple years ago there being $1000 sent to the higher income people that everyone did not receive. IMHO, the IRS is doing the best they can considering the wide range of incomes, the tough economy.......and the basic feeling that they are no good!

Also, seeing how much money the US gives to rebuild areas of the world that our military has damaged in war,(like countries who are hell bent on destroying us!!) why should any US citizen feel guilty about accepting money from our government?

The $1000 that was sent out to people in the higher income bracket, wasn't what you try to make it out to be. 1st off, it was for a child tax credit. If you qualified, you didn't get $1000 either, you got so much per child. What was it, $400 or $600 per child?

Now, here is the IMPORTANT part. It wasn't given to anyone! It was an advancement toward that year's tax return. This means, if you had 2 kids, you were sent say $800 (because that's what I believe it was) in August or something like that. Then when you filed, you subtracted that $800 part of your refund because you'd already gotten it in August.

All it was was a way for Bush to hand people some money to try and get the economy rolling again.

 

[N.Bailey]

If there was no EIC given to anyone, trust me the government would find some useless way to spend your tax dollars, it's not like you would be taxed less if it wasn't around

I think this is something that everyone on the thread can agree upon.

 

[MagicKingdom05]

N.Bailey,

I agree with that as well. Obviously something needs to be done with the tax system in place now. However until that happens there really isn't much that any body can do.

 

[Obi-Wan Pinobi]

Originally Posted by mudnuri
.

9th...no boyfriend living here helping me cheat the system.



Brandy

Add me to the confused list. I thought your boyfriend lived with you. I thought I remembered you being upset over him not wanting to celebrate Christmas or something and I thought it sounded like you guys lived together. Or am I confusing the OP with someone else.

 

[N.Bailey]

Sorry about the confusion on what I was trying to get across, I'm a little under the weather and when I went back and read what I had posted I realized that it wasn't clear what I was trying to get across and I appoligize for that.

It seems that many on here are upset the EIC is even available because it's not fair to everyone. What I was trying to show is that there are lots of tax breaks and things like that in the tax code that isn't fair to everyone. Some help those who make less money and some help those who make more money. Up until last year I could only take the standard deduction while others were able to itemize and take property tax and morgage interest off there taxes. Trust me I was jealous of those people who got $4000 returns while I was only getting back $1000 if that. Just like with those who can take the EIC credit, some of us can take other tax breaks like itemizing and things like that and use those to our advantage.

As far as the flat tax issue goes, a few people mentioned about getting away from tax returns all together and doing a flat tax accorss the board. I was trying to show how if the federal gov taxed everyone the same it didn't seem fair to those who made less. I guess I don't see the problem with those who make more getting taxed more and those who make less getting taxed less.

Once again I apologize for not being more clear on what I was trying to get across.

I understand what you're saying, but the issue here is, EIC gives you back more than you pay in.

The others allow you to lower the amount of tax you owe, but you still pay something. IF you have enough deductions (medical bills could easily put you in that bracket, unless you don't think medical bills should be an allowable expense?) to owe zero tax. You would then qualify for a full refund, but nothing more.

I don't think anyone is against (well, I'll correct myself, MOST aren't against) giving these people back every cent that they paid in. That would be a tax break. The issue is, giving them back money I paid in. (that's a generic I there, not me personally)

Just for the record, I know many people who get the EIC. I'm not trying to use it as an argument really because no one owes anyone else an explanation for how they spend their money (and it is their money once the IRS hands it over), but of all the people I know and knew through out my life, I don't recall a single time where anyone has said they planned on using the money for what most here would term necessities of life. All my life all I ever heard was, new TV, stereo, car, vacation, yada, yada, yada. Now, when you're busting your *** at your job and aren't able to afford these luxuries yourself, it can get on your last nerve to hear how everyone else spends your money because the government plays Robin Hood. It's a redistribution of money, nothing more, nothing less.

 

[N.Bailey]

As far as the flat tax issue goes, a few people mentioned about getting away from tax returns all together and doing a flat tax accorss the board. I was trying to show how if the federal gov taxed everyone the same it didn't seem fair to those who made less. I guess I don't see the problem with those who make more getting taxed more and those who make less getting taxed less.

Once again I apologize for not being more clear on what I was trying to get across.

and to respond to this, why in the world do you think it's unfair for someone making $30,000 a year to pay $3000 in tax, but think it's fair for someone making $50,000 to pay $5000?

 

[phorsenuf]

Add me to the confused list. I thought your boyfriend lived with you. I thought I remembered you being upset over him not wanting to celebrate Christmas or something and I thought it sounded like you guys lived together. Or am I confusing the OP with someone else.

I thought they were living together too based on the post about the last storm and how he came home to sleep, but got called back out or something.

The reason I remember that post is my DH is kinda in the same type of job and I can relate to being called out during storms.

Whatever........

 

[N.Bailey]

Add me to the confused list. I thought your boyfriend lived with you. I thought I remembered you being upset over him not wanting to celebrate Christmas or something and I thought it sounded like you guys lived together. Or am I confusing the OP with someone else.

I rarely pay attention to nics (I'm so bad with names to begin with, numbers are more my thing) so I have no memories of prior posts, but she was clear in this thread that she did not live with her BF.

 

[froglady]

and to respond to this, why in the world do you think it's unfair for someone making $30,000 a year to pay $3000 in tax, but think it's fair for someone making $50,000 to pay $5000?

ITA

Someone making $25,000 would pay $2500. Someone making $50,000 would pay $5,000. Someone making $100,000 would pay $10,000. The person making twice as much would pay the exact same percentage, but still pay twice as much. The person making 4X as much would pay the exact same percentage, but still pay 4X as much.

I don't see how this is unfair to the person making less, UNTIL you start with the "but the person paying $25,000 only has $22,500 left, but the person making $100,000 still has $90,000 left, so paying the money doesn't bother him as much. IT'S NOT FAIR!"

 

[bengalbelle]

I rarely pay attention to nics (I'm so bad with names to begin with, numbers are more my thing) so I have no memories of prior posts, but she was clear in this thread that she did not live with her BF.

I've read previous posts of hers long before this thread was posted and I also had the impression they were living together.