TAX DAY

It’s both Monday AND Tax day. A twofer of misery. And, there are lots of tax stories out there.

This one explains how much money is wasted on our stupid tax code.

David Keating of the National Taxpayers Union provides a useful perspective on how big the tax compliance industry is. According to his research, as of 2009 the income-tax industry employed “more workers than are employed at the five biggest employers among Fortune 500 companies—more than all the workers at Wal-Mart Stores, United Parcel Service, McDonald’s, International Business Machines, and Citigroup combined.” Without diminishing in any way the professionalism of tax attorneys, accountants and financial planners, all of these efforts produce nothing other than, well, tax compliance.

Flat. Tax.

And this one esplains that the Democrats HAVE to raise taxes on the middle class, because they’re not willing to give anything up and that’s where the money is.

Taxing the millionaires and billionaires at 100% (the top 1% who pay 38% of all taxes now) brings in $938 billion. Math is hard, but that won’t cover the $4 trillion White House budget.

So, we take all the income from the top 10% (who currently pay 69% of total income taxes), and that brings us to $3.4 Trillion. Still not making it.

The money – the greatest number of earners – is in the middle.

Taxing the rich simply wont’ get it done.

Obama, of course, said he was going to tax the millionaires and billionaires. And all his cronies repeated that mantra. THE RICH need to pay their fair share. It’s a lie. Taxing “the rich” will help in the short term only. Obama plans on taxing the middle class, he’s just not saying it.

All we need to do instead is let taxes rise and keep on rising. This is how the “current law baseline” cuts the deficit: Thanks to inflation and bracket creep, its tax code gradually subjects more and more Americans to rates that now fall only on the wealthy.

Today, for instance, a family of four making the median income — $94,900 — pays 15 percent in federal taxes. By 2035, under the C.B.O. projection, payroll and income taxes would claim 25 percent of that family’s paycheck. The marginal tax rate on labor income would rise from 29 percent to 38 percent. Federal tax revenue, which has averaged 18 percent of G.D.P. since World War II, would hit 23 percent by the 2030s and climb even higher after that.

They KNOW this. It is part of the plan.

How about the Fair Tax?

The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax, a prebate to ensure no American pays federal taxes on spending up to the poverty level, dollar-for-dollar federal revenue neutrality, and, through companion legislation, the repeal of the 16th Amendment.

The FairTax Act (HR 25, S 13) is nonpartisan legislation. It abolishes all federal personal and corporate income taxes, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes and replaces them with one simple, visible, federal retail sales tax administered primarily by existing state sales tax authorities.

The FairTax taxes us only on what we choose to spend on new goods or services, not on what we earn. The FairTax is a fair, efficient, transparent, and intelligent solution to the frustration and inequity of our current tax system.

Mare’s boyfriend on why raising taxes ON THE RICH is wrong:

If you have really high tax rates what you end up doing is you penalize small businesses.What you have to remember Bob, most successful small businesses file their taxes as individuals. Most of our jobs come from these small businesses. **The president is proposing to raise the top tax rate on these small businesses to 44.8 percent. We don’t think that’s good for jobs, we don’t think that’s good for economic growth, and when we tax our employers a whole lot more than our foreign competitors tax theirs, we lose, they win, and we don’t want that.

Two things, number one: We don’t have a tax problem. Our revenues are going back to where they have been historically. We have a big spending problem…The president’s proposing $1.5 trillion in tax increases, the Democrats in congress are proposing anywhere from $2-16 trillion in tax increases based on the three budgets they brought to the floor the other day…Here’s what we’re trying to get: Spending cuts and controls to get spending under control — because that’s the problem — and economic growth and job creation. We don’t want to give up one to get the other.”

**I resemble that remark.

We’re fucked, part 8786987. We pay out more in wealth transfers than we take in.

In February, households received more than $2.3 trillion in income support from unemployment benefits, Social Security, disability insurance, Medicare, Medicaid, veterans’ benefits, education assistance and other cash transfers of government funds to individuals. In the same month, households paid $2.2 trillion in income, payroll, and other taxes. The difference was about $150 billion, equivalent to more than 1 percentage point of overall personal income and about four times the amount Republicans and Democrats agreed to cut from government spending through Sept. 30.

Those with a job are supporting those without, and it’s NOT ENOUGH. Think about that as you go off to work. Perhaps you should get a second job?

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One Comment on “TAX DAY”

  1. Svenster Says:

    Heartless! Implement a flat tax and you could see masses of accountants, tax attorneys, and financial planners shuffling aimlessly through the streets; clogging the homeless shelters. Many might even be forced into productive employment. Oh the humanity!


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