"Poor people don't pay taxes"

reply to post by METACOMET


I have heard about some of the things you are talking about here in your post, but this is a dangerous game to play in these times. You have to realize, that the Constitution has been suspended since 1933. The rule of law has been superseded by the practice of public policy. In other words, the courts can rule however they wish and choose to, regardless of previous statute, as they see fit in their interpretation of what is in the public interest, not their interpretation of the Constitution as we are led to believe.

The worst tax group that gets hit the hardest are those who make between 100k and 200k per year. They jump into the higher tax brackets without the tax breaks that both the poor and the rich get. The rich create their own tax breaks and the poor are given theirs.

1. Sales tax, should the rich pay more sales tax for the same item?
2. SS tax, the cap is the same for both, so should the rich pay more into it to get the same amount as the poor?
3. Fed tax, top 50% of the country pays 95% of all taxes. Just do a simple Turbo Tax test and you will see that the poor do not pay any Fed taxes, but tend to get all the benifts.


I'm not sure the point in the OPs post.

reply to post by Xtrozero

Just do a simple Turbo Tax test and you will see that the poor do not pay any Fed taxes

Just fill out IRS form 1040EZ and you will prove yourself wrong.

reply to post by MacSen191


Don't laugh, I'm being serious here. Call the IRS. They have actually become very helpful. I had some issues the last few years and haven't filed my taxes. They told me point blank that one year I didn't make enough to file. And when I tried to see if there was any way to get this years refund back instead of using it to pay older bills, due to identity theft issues, they put me in touch with a tax advocate without me requesting one, and told me who to contact about the identity theft and how to handle it.

If you are filing as an individual you can take the standard deduction of $5,350.

www.irs.gov...

Then, let's estimate the amount you'll need to pay.

taxes.about.com...

Below are the marginal tax rates for 2008. Tax rates progressively increase as income increases.

• 10% on income between $0 and $8,025
  
• 15% on the income between $8,025 and $32,550; plus $802.50
  
• 25% on the income between $32,550 and $78,850; plus $4,481.25
  

So let's say you make $20,000. That would put your taxes at $3,000 which doesn't come close to your standard deduction. Even when you reach $30,000 you'll find that you just about break even on the taxes you pay vs. your standard deduction. So here's a news flash. If you make under $30,000 you don't pay federal income tax.

Let's say you make 75,000 a year. You're taxes are now starting to reach up towards $10,000 - $15,000 a year. If you follow this trend you'll come to the startling conclusion, that if you're poor, (Under $30,000 annually) you don't pay federal income tax. The more you make however, the more taxes you pay. If you could actually pull in 1 million a year you'll find your taxes reach up towards $400,000.00. That doesn't hardly seem fair does it?

Fact. Poor people only pay state and local sales taxes. Fact, the more you make, the more you pay in taxes. I wish I could post my Social Security statement for you guys to see. It clearly shows that I used to pay nothing, but now pay quite a bit of taxes every year. I know for a fact and from experience how this works. Now I find myself shoving money into Health Savings Accounts, and into 401K saving accounts just to keep my taxes down. You have to be creative because the more you make, the more they take.

Here's an example of how extreme it gets.


seekingalpha.com...

$40 Billion doesn't seem so great when the government takes $30 billion from you in taxes.

[edit on 2-3-2008 by dbates]

Originally posted by jackinthebox
Just fill out IRS form 1040EZ and you will prove yourself wrong.

A single person who made 30k that rents with zero deductions or dependants pays $2800 in fed taxes.

25k person $2000

20k person $1100

So yes a single person with zero anything and you would pay. At what point do you concider poor for a single person?

The same person with 100k pays $20,500 in taxes...

200k pays $51,500
500k pays $158,500

I see a trend here...

A family of 3 kids with 2 parents that rent with no other deductions will pay zero fed tax with a yearly income of 53k.

reply to post by Xtrozero


Example One:

Single person earns $10,294. This figure is exactly the poverty threshold which was defined by the U.S. Census Bureau in 2006. This year, that amount would be taxed by the Federal government in the amount of $117.

Example Two:

A single person who earns $13,000 this year will pay $327 in Federal income tax.

reply to post by dbates

So here's a news flash. If you make under $30,000 you don't pay federal income tax.

Newsflash!!!

This is incorrect, as I have shown.

[edit on 3/2/0808 by jackinthebox]

reply to post by jackinthebox

Don't forget to add in that the standard deduction for a person is $5,350.00. You have to subtract that from their taxes owed. If you were taxed $300 then you would get the entire amount back when you filed your taxes.

EDIT: Trust me. I've made everything from $800 to $75K annually. If you don't make over $30K you don't have to pay federal income tax.



[edit on 2-3-2008 by dbates]

reply to post by dbates


Already factored that in, using IRS 1040EZ.

In fact, there is also an exemption that you failed to mention, which I also took into account.



[edit on 3/2/0808 by jackinthebox]

That is the amount that will be deducted from their paychecks over the course of the year. Once they file the 1040 and list their deductions, then they will get that amount back and more in some cases. Last year, due to workmans comp injuries I made a hair under $10,000. I made more than this with work comp payments, but those are not taxable so they don't count. I had $797 witheld, and was due for a $970 refund (except previously mentioned tax issues). So I wound up not paying a thing in taxes last year.

reply to post by dbates

Trust me. I've made everything from $800 to $75K annually. If you don't make over $30K you don't have to pay federal income tax.

I'll trust the IRS on this thank you.

reply to post by Zaphod58


You qualified for EIC.

Yes I did. And so do most people with low incomes. That's kinda the point of it. In 2004 there were $36B in refunds through the EIC. The biggest problem is people NOT claiming EIC that CAN claim it.

reply to post by Zaphod58

Yes I did. And so do most people with low incomes. That's kinda the point of it. In 2004 there were $36B in refunds through the EIC. The biggest problem is people NOT claiming EIC that CAN claim it.

If you earned more than $12,590 this year, you do not qualify. Furthermore, if you are a 24 year-old living in official poverty, you do not qualify either.

So, I would have to disagree that "most people with low incomes" qualify.




[edit on 3/3/0808 by jackinthebox]

Originally posted by jackinthebox
reply to post by Rockpuck

 

Why should rich folks pay into SS when they wont use it or need it?

It is the responsiblity of ALL citizens to provide for the common welfare.

Let me give an example. There is the Scrooge riding around in his well-maintained Mercedes, and looking upon the other people in traffic with great disdain. Suddenly, BAM! He gets broadsided by a truck. The truck was being driven buy some poor schmuch working 65 hours a week, but still couldn't afford to get his brakes fixed on his jalopy. Now Scrooge ends up a Quadrapeligic, loses his fortune, and ends his life in the poor-folks home living on SSI checks and eating dog food. If only he had used his power and influence to lobby for reforms to help people in need.

This is actually a bit if a parody inspired by a terrible and true story that happend to a friend of mine this Winter.

In a welfare state... yes.

But I live in what was once a land where people took personal responsibility.. now we have illegal programs that suck the middle man dry to give to the little lazy ignorant low end of society because they couldn't get off their couch and stop popping out offspring to get a damn job.

I don't like SS, I don't like Medicare, I don't like Medicaid, and I sure as hell hate food stamps, I hate college financial aid, benefits for "minorities", free insurance for poor, complete tax returns for the poor, and any and all federal programs that steal money from everyone, to waste it on the beurocratic bull that runs the system of self pitty, fueled by the notion "why should I do it myself?"

And no, I am by all means not rich, and I came from a lower middle class family, however unlike the worthless section of society, that degenerated filth that ruins this country, I had the mindset to move up, and move up I will.

If someone works hard, and sh-- happens, charities, churches, organizations.. thats what they should be used for.

I know I give more to charity then I do taxes.. then again, those with the welfare set of mind, they prefer the Gov, their big brother, to take care of them.

reply to post by Rockpuck


Poverty is not a choice. Are there people who abuse the system, sure. But who are they really? People who have never had a chance at a real life, and are ignorant about what a real life actually is. If you were born on welfare, you probably won't know the difference.

I agree that the system needs a complete overhaul, but I am not about to blame poor people for being poor.

reply to post by Rockpuck

...now we have illegal programs that suck the middle man dry to give to the little lazy ignorant low end of society because they couldn't get off their couch and stop popping out offspring to get a damn job.

I have been unemployed since Summer, and homeless since Halloween. (This is not my computer I use.) I have been seriously considering knocking up my girlfriend for a place to live. The only reason I won't, is because I don't want to perpetuate the cycle of ignorance. I don't want my child growing up in a hopeless situation. My situation.


[edit on 3/2/0808 by jackinthebox]

LOOK AT ALL OF YOU!!!

Bickering back and forth about who pays more taxes.
You are all fools!!!

Go to the government accountability office website www.gao.gov
They are supposed to audit the federal agencies every year.
Read the 2007 Unites States Financial Report, read all the prior years also.

They cant audit any agency except one(social security) because
they dont keep the proper paperwork. And last year was the first year
they audited social security.

Yeah, the government who keeps records on each taxpaper.

Why do you think they dont keep paperwork? Their ripping all of you off!!! The poor and the rich.

The department of defense is the worst, the top people are getting filthy
rich from the Iraq invasion. The top people in all these agencies are
getting filthy rich.



And all of you are fighting over who pays more to these crooks!!!

reply to post by Xtrozero


Can you then explain how a person who makes 280.00 per week, has 42.00 per week taken from their check for federal tax, files taxes and still owes around 100.00 to the irs is not paying their taxes? Do people think that because the poor pay less that they don't pay at all? It is proportionate to their income and status, but they DO pay. That computes to 2184.00 of their AGI that they will never see again. A person making only 280.00 pre tax dollars a week could use a break.