Which half are you? Pay or recieve?

[brerrabbit]

At this point in the discussion I think most understand that we are not talking about refunds but rather whether or not any of our income goes to income taxes, not SS, not medicare, but FICA. That said what the article says is that 47% of the people in the US pay no FICA at all. The article also states that 50% of all revenue to the Federal Government comes from income taxes so 50% of the people pay 50% of the budget. However it goes on to say that the top 10% pay most (around 62%) of the total. Estimated revenue from income taxes is $900 billion. Considering that many will see a return on the SS and Medicare dollars collected it's hard to really see those as taxes in the true sense.

The example of someone who pays no FICA would be a family of 4 with two children under the age of 17. They get personal exemptions of 14,600 (4 times 3,650) and stardard deductions of $11,400. From there they receive a pay to work credit, and two $1,000 child credits for the two children under the age of 17. When you net those credits against the taxes they would owe the result is they owe $0 and actual get $31 from the government that they never paid into the system.

We can talk about all the other taxes paid to the feds, states, counties, cities etc., however that is not what the article is talking about at all. They focus only on Federal Income Taxes.

 

[KAMLEM]

Are people not understanding this poll?

I don't think they are. I think a lot of people are answering in regards to whether they get a refund or not.

 

[pearlieq]

I think most people are understanding the poll just fine.

The sample here on the DIS is incredibly skewed. We're all people with computer access brought together by a interest in leisure travel.

That would suggest that we're a group of people with a much, much higher likelihood of having disposable income, which would tend to make us part of the "pay" half.

Folks who are expecting the DIS to reflect the national average may understand the question at hand, but not much about demographics and sampling.

 

[eliza61]

I think most people are understanding the poll just fine.

The sample here on the DIS is incredibly skewed. We're all people with computer access brought together by a interest in leisure travel.

That would suggest that we're a group of people with a much, much higher likelihood of having disposable income, which would tend to make us part of the "pay" half.

Folks who are expecting the DIS to reflect the national average may understand the question at hand, but not much about demographics and sampling.

 

[eliza61]

I don't think they are. I think a lot of people are answering in regards to whether they get a refund or not.

Do you think we don't understand or you're just not in agreement with how the answers are trending?

 

[Muushka]

I understand the poll.

We pay.

For those of you who are happy to be contributing to the income tax pool, would you consider contributing a little extra for some of us who are not quite as happy as we should be?

 

[disykat]

I pay taxes willingly (not necessarily happily, but it's a necessity.)

I don't resent people who don't make enough income to owe taxes.

I do, however, resent people who get refunds from the IRS who don't pay taxes. That doesn't make sense to me at all. While taxes provide monies for welfare programs, the tax process is not supposed to be about doling out money straight to those who haven't paid any. How can they "refund" something that has never been paid?

Whether people prepay and get refunds doesn't matter in the least. If the total they paid is less than the amount they got as a refund though - they are getting an IRS handout.

 

[Maleficent Lives]

I pay. Why ask for anything when I can earn it and make it more meaningful to me.

 

[Mrs.Toad]

At this point in the discussion I think most understand that we are not talking about refunds but rather whether or not any of our income goes to income taxes, not SS, not medicare, but FICA. That said what the article says is that 47% of the people in the US pay no FICA at all. The article also states that 50% of all revenue to the Federal Government comes from income taxes so 50% of the people pay 50% of the budget. However it goes on to say that the top 10% pay most (around 62%) of the total. Estimated revenue from income taxes is $900 billion. Considering that many will see a return on the SS and Medicare dollars collected it's hard to really see those as taxes in the true sense.

The example of someone who pays no FICA would be a family of 4 with two children under the age of 17. They get personal exemptions of 14,600 (4 times 3,650) and stardard deductions of $11,400. From there they receive a pay to work credit, and two $1,000 child credits for the two children under the age of 17. When you net those credits against the taxes they would owe the result is they owe $0 and actual get $31 from the government that they never paid into the system.

We can talk about all the other taxes paid to the feds, states, counties, cities etc., however that is not what the article is talking about at all. They focus only on Federal Income Taxes.

Federal Income Tax is not FICA. You're right, the article is only talking about FIT, but FICA is not the acronym for it. FICA (Federal Insurance Contributions Act) is Social Security.

I think most people are understanding the poll just fine.

The sample here on the DIS is incredibly skewed. We're all people with computer access brought together by a interest in leisure travel.

That would suggest that we're a group of people with a much, much higher likelihood of having disposable income, which would tend to make us part of the "pay" half.

Folks who are expecting the DIS to reflect the national average may understand the question at hand, but not much about demographics and sampling.

I agree, however, several people early in the thread misunderstood the question, based not on the poll responses, but on the posts that were clearly talking about April 15 payments versus refunds.

 

[Mrs.Toad]

I understand the poll, and I understand how taxes work. Don't worry, 50% of the country ISN"T supporting 100% of it, because the poll only talks about Income tax. Those that don't pay federal income tax still pay other taxes (i.e. Social security, sales tax etc...)

also,something to consider, there are many who don't pay income tax but do pay rent - part of that rent payment goes towards the property tax. So, the landlord who owns the property gets to deduct the property taxes, the mortgage payments, AND depreciate the property, yet collects the money from those expenses from the tenant who gets painted with the "he never pays any taxes so I'm supporting him" brush. When I did taxes pretty much everyone who owned rental property was able to take a tax write off from their income resulting in paying much less in taxes than they would have, if they didn't have the rental property.

You could take that a step further, too. For any product that any person purchases, the buyer is indirectly paying the income tax that the seller owes on the sale of the item. Businesses set their prices to make a profit, after the cost of the item, overhead and income taxes.

And of course, corporations pay federal income tax as well, it's not 100% the burden of that 53% of individuals.

 

[carj]

We owe income taxes in addition to what we paid in this year. I am very grateful to be in the financial position that we are not on the other side.

That doesn't mean that I think that the other half should be getting back money that they haven't paid in. I have never undestood that. I can undestand getting back all you paid in, but I think that it should stop at 0. You shouldn't be able to get back additional money.

We will be writing our check on the 15th. Already filed but waiting until the last moment to pay!

 

[Muushka]

We owe income taxes in addition to what we paid in this year. I am very grateful to be in the financial position that we are not on the other side.

That doesn't mean that I think that the other half should be getting back money that they haven't paid in. I have never undestood that. I can undestand getting back all you paid in, but I think that it should stop at 0. You shouldn't be able to get back additional money.

We will be writing our check on the 15th. Already filed but waiting until the last moment to pay!

I worked at an H&R Block one tax season. Blue collar crime exists.

 

[Nancyg56]

My parents were raisedduring the great depression. There was no work. My Momalways told me she had no problem paying taxes becasue that meant she ws earning a living wage. I agree, i do not mind paying my fair share. We are blessed in my home to have enough and a little extra. That does not mean i agree hat when DH brings home his check the amount withdawn is fair. It is not. IMO.

 

[hopemax]

We are receivers this year thanks to the first time homebuyer credit and the Making Work Pay credit, by about $1600.

Normally, we are payers. I'm actually curious what the percentages would be over the course of a lifetime. I suspect there are quite a few people who are payers for their prime working years, but might have been receivers when just starting out or will be receivers in their later years. Over a course of a lifetime, how much does it balance out?

I'm okay with the taxes we normally pay. Our adjusted gross income puts us around the average, and the federal taxes we pay are about half of our entertainment/vacation budget. While I would always love to have more money, who doesn't, I am okay with others less fortunate than me getting more than they pay in. I've had more opportunity, better education, etc. The money I pay seems like a fair trade off to me to help someone get the resources they need to become successful tax paying citizens. If I wasn't paying for that I have no doubt I would be paying for increased services to maintain law & order instead.

The IRS refunds equaling more than is paid in is just a distribution system. There are pictures from the Great Depression of people standing in line to receive "relief checks." Would that be more palatable to people? Or does the problem still exist because of the perception of people getting something for nothing? Unfortunately, poor people exist. And abuses aside, IMO, the super-majority of the less fortunate truly need assistance. Some people see it as just giving, "someone a fish." But, "teaching a person to fish" isn't free either. The person needs a pole, tackle, bait and instruction in how to use it. The money provides for adequate clothing, a permanent address, transportation, childcare...all things necessary for a person to have to obtain employment.

 

[Topper]

Sorry, I don't participate in political threads on the DIS.

 

[Handbag Lady]

I live in California.

I pay and pay and pay and then pay again. Even with taking out $100 each paycheck, we had to pay $3k this year.

 

[Lily & Giny's Mom]

Me too, I do not care what these people think on this subject, or really any other subject. Get a life.L&G'S Dad. As far as this community forum goes.

 

[chicagodisneyfan]

Sorry, I don't participate in political threads on the DIS.

How is this political? Taxes affect all political parties?

 

[DarthKTrava]

Receive. It helps that I have a 401k plan at work that I put money in to. I've never paid any taxes but have gotten part or all of them back in the spring.

 

[LuvCuteBoys]

I pay, but not much thankfully. No house, no kids, no husband .

Having a house and kids would make you pay LESS. I hate our tax system. I work just as hard as the other people in the office but get to keep less of my money because I don't have kids. The argument about those who make more should pay more doesn't take into consideration all the things people get deductions for. There are people making the same amount of money but paying different amounts in taxes. It's ridiculously unfair.

We need to do away with all these ridiculous credits, blah blah blah. Everyone should pay a set percentage of their income. That is the only logical way to do it.