Do you really pay taxes?

Discussion in 'Politics' started by Salty, Dec 11, 2010.

  1. Salty

    Salty
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    How much of your income is tax free?

    This according to the IRS 1040 of 2009 tax year

    A single person can make 9350 before you must pay taxes

    A married couple can make 18,700 before you must pay taxes

    A married couple with 2 children can make 26,000
    before you must pay taxes

    But you say, they take taxes out each week from my pay check. But keep in mind, if they do, and you get it all back, then you are not paying income tax. All you have done is loaned the govt about $1,000 with free interest.!!!
     
  2. Steven2006

    Steven2006
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    Also keep in mind that there are many deductions, and or credits people often get to take which lowers the income amount they will actually use when filing their taxes.
     
  3. Paul3144

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    Interesting question. My standard deduction will be different because I'm a full-time student who is a dependent. However, this year will probably be the last year I'll be a dependent student as defined by IRS rules. I'm really not sure if I'll end up paying net income taxes. Regardless, I still pay FICA taxes, State and Federal excise taxes, and State and local sales tax.
     
  4. Salty

    Salty
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    True - child credit, ect

    But many find it more expensive for the wife to work with the extra expenses ie auto, lunch, child care, ect
     
  5. billwald

    billwald
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    Why do you all refuse to see that FICA is an income tax?
     
  6. Salty

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    In essense it is - but in theory it goes into a locked box.

    Now the facts. An employee only pays 13.9% of his pay to SS/Medicaid.

    The regular income tax can be as high as 35-40% of income - in addition to FICA.

    As I stated before many Americians do not pay any general fund income tax.
    big difference
     
  7. Paul3144

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    The employee only pays 7.65% of his income for FICA. The employer pays an equal amount. And, yes, FICA is an income tax.
     
  8. North Carolina Tentmaker

    North Carolina Tentmaker
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    Both the employee and employer's parts both have to come out of what it costs to have an employee. The only real difference is that only half of the cost is accounted for on the employee's pay stub.
     
  9. Paul3144

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    Right. The employer portion of FICA is part of the cost of hiring labor. Without it, the employer would just pocket the money.
     
  10. Salty

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    Your right - I had the chart for both -employee and employer - including the total - oops, just a matter of going too fast

    But I did add the SS and Medicaid together.
     
  11. glfredrick

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    We certainly pay more taxes than just federal income tax! Once one adds up all the taxes paid, we're almost all in the 50% range or worse. If one is in the highest federal bracket they may pay out more than 75% of their income when all the various taxes are added up.
     
  12. SRBooe

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    And some say that it still is not enough!

    Note that we aren't even discussing how much corporations are charged just to operate in the U.S.
     
  13. Salty

    Salty
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    Fee free to start a new thread on that

    The point of this thread is that many Americans are paying way too much in taxes, while some pay nothing - in a few even get back more than withheld.
     
  14. SRBooe

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    Well, I would. I think I'd be preaching to the choir. Those here who love the idea of a socialist state would get nothing out of it, and those who understand would not either.
     
  15. North Carolina Tentmaker

    North Carolina Tentmaker
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    Perhaps, or they would simply be able to hire 7% more employees or pay the employees they have 7% more. Or another option, they could lower the price for their customers by 7%.

    Yea I know Paul, you think all those employers would just get richer, but if your competition is paying 7% higher wages or charging 7% less for their product you either have to follow suit or loose your employees or customers.

    The bottom line is that taxing payroll before you get it takes the same amount out of your check as taxing after it hits your pay stub. It all goes to the government and it all comes from the workers, one way or another.
     
  16. billwald

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    >If one is in the highest federal bracket they may pay out more than 75% of their income when all the various taxes are added up.

    This person needs a new tax guy.

    I'm not foolish enough to try to explain "marginal tax rate" and "capital gains" on a Baptist list.
     
  17. glfredrick

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    Property Tax
    School Tax
    Automobile Tax
    Registration Tax
    Local Tax
    State Tax
    Federal Tax
    Sales Tax
    Luxury Tax
    Capital Gains Tax
    FICA Tax
    Medicaid/Medicare Tax
    SS Tax
    Fuel Tax
    Alternative Minimum Tax
    Import Tax
    Travel Tax
    Postal Tax

    Need I say more?

    Like I said above, there are more taxes than just the federal rate.
     
  18. billwald

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    >Property Tax
    >School Tax
    >Automobile Tax
    >Registration Tax
    >Local Tax
    >State Tax
    >Federal Tax
    >Sales Tax
    Luxury Tax
    Capital Gains Tax
    FICA Tax
    Medicaid/Medicare Tax
    SS Tax
    >Fuel Tax
    Alternative Minimum Tax
    Import Tax
    Travel Tax
    Postal Tax

    $ 2,200 Property tax includes state, local, and school taxes.

    $ 150 lic Tax on 2 cars

    $ 2,000 income tax last year, paid extra switching IRA to Roth

    $ 3,000 sales tax est?

    $ 50 fuel tax?

    $ 7,400 total tax on $50,000 retirement income

    Never heard of a postal tax.
     
  19. matt wade

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    Sorry...I hate to say it, but I'm with billwald on this one. A person in the highest federal tax bracket isn't coming close to paying out 75% of their income in taxes. Not even close.
     

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