My Taxes are too low!

First, I didn't become KN all of a sudden. I'm not start going to demand 70% tax rates, or whatever KN is up to these days. 😉

That having been said, I spent a lot of the day yesterday preparing my 2009 income tax return. I'm not done yet, but I've covered enough ground to know that federal income tax is a joke. Yes, payroll tax is a beeeotch, but, at least in theory, I'm putting that money away for myself later on.

I'm not going to say what my effective federal tax rate is, because then Telerion or someone is going to guesstimate my deductions and announce my AGI on the forum, but suffice it to say that it's almost appallingly low. I'd expect, in a vacuum, to pay at least another couple of thousand dollars per year.

I'd say, offhand, that slightly higher tax rates, achieved by slightly higher rates and some limits on deductions would generate an extra couple of hundred billion dollars a year. That's not going to close the deficit in itself. But between that, making the payroll tax pick up after $250k, taxing dividends and cap gains as ordinary income and some common sense SPENDING CUTS (i.e., not paying for stuff that's none of the federal government's business), the deficit could be closed.

And, it would be a lot less painful than people think. An extra $2,000 a year in federal income tax is $40 more a week withheld. BFD*. People that make less can pay correspondingly less (and converse). All the stimulus money would hardly be missed. So, there won't be an extra dog walk on the Potomac. We'll live without it.

So, write your Congressman and demand slightly higher taxation and less spending. Only YOU can balance the federal budget.






* "Big Federal Deficit (reducer)" Get your minds out of the gutter, people! 😠

Originally posted by sh76
First, I didn't become KN all of a sudden. I'm not start going to demand 70% tax rates, or whatever KN is up to these days. 😉

That having been said, I spent a lot of the day yesterday preparing my 2009 income tax return. I'm not done yet, but I've covered enough ground to know that federal income tax is a joke. Yes, payroll tax is a beeeotch, but, at least ...[text shortened]...
* "Big Federal Deficit (reducer)" Get your minds out of the gutter, people! 😠

Higher taxes are coming. Don't you worry. My guess is after the next election. If obama wins, he'll have no problem raising taxes since he's out of office after that anyway.

Dear sh76,

We understand that you are a well-respected member of the Republican Party. So it is with great misgiving and regret that we have to inform you that we plan to rescind your membership in our organization. We were sad to read a post on the Red Hot Pawn forum where you suggested that tax levels were "too low". We are willing to reconsider your status in the Republican Party if you submit a suitable retraction within seven (7) working days. Please act promptly.

Michael Steele
chairman of the RNC

Originally posted by Melanerpes
Dear sh76,

We understand that you are a well-respected member of the Republican Party. So it is with great misgiving and regret that we have to inform you that we plan to rescind your membership in our organization. We were sad to read a post on the Red Hot Pawn forum where you suggested that tax levels were "too low". We are willing to reconsider yo ...[text shortened]... Michael Steele
chairman of the RNC

Dear Mike,

Why did you have to run for Senate in 2006? You ran a great campaign and could have won if it hadn't been such a lousy GOP year. Please, run again this year or at least against Cardin again in 2012. If you could come within a few points in 2006, you could win in 2010 or 2012. And, then you'd have something constructive to do with your time; serving in the US Senate... Oh, wait... Well, at least it would make for an exciting race.

Sincerely,

sh76

Originally posted by sh76
First, I didn't become KN all of a sudden. I'm not start going to demand 70% tax rates, or whatever KN is up to these days. 😉

That having been said, I spent a lot of the day yesterday preparing my 2009 income tax return. I'm not done yet, but I've covered enough ground to know that federal income tax is a joke. Yes, payroll tax is a beeeotch, but, at least ...[text shortened]...
* "Big Federal Deficit (reducer)" Get your minds out of the gutter, people! 😠

Its not about revenue being brought in as much as it is spending. You can increase the revenue and, at the same time, increase the spending to void the revenue. Revenue for the government is like crack cocaine.

Other suggested threads to avoid for sh76.

"We need more snow"

"If only my wife were uglier"

"My taxes come soon enough, so what is taking death so long?"

Originally posted by whodey
Other suggested threads to avoid for sh76.

"We need more snow"

"If only my wife were uglier"

"My taxes come soon enough, so what is taking death so long?"

😀

Originally posted by sh76
First, I didn't become KN all of a sudden. I'm not start going to demand 70% tax rates, or whatever KN is up to these days. 😉

That having been said, I spent a lot of the day yesterday preparing my 2009 income tax return. I'm not done yet, but I've covered enough ground to know that federal income tax is a joke. Yes, payroll tax is a beeeotch, but, at least
* "Big Federal Deficit (reducer)" Get your minds out of the gutter, people! 😠

It is nice for us that payroll taxes are capped. Unfortunately, we lose pretty big on the future benefits.

With the first time home buyer credit, education tuition deduction, student loan interest deductions, mortgage interest deductions, child tax credit, state/local tax deductions, and the fact that my initial salary and moving benefits were grossed up to offset a tax bracket that would apply if I were single and worked the entire year (only worked since June), my average tax rate will be crazy low. I can't wait to file.

The only sucky thing is that because of people gaming the first time homebuyer credit, I have to file by mail so the government will likely get an extra three month zero interest loan on my tax return.

Of course, if you feel guilty about making too much, you can always give more to a good charity (yeah, another deduction!). They will probably use it better than the crowd back in DC.

Edit: Although looking at next year, things are less rosey. Beware the "phase out." 🙁

By the way, I was never arguing for 70% tax rates, only for a 70% highest nominal tax rate combined with a large tax-free income (say $15k, so that someone making $30k would pay 35% tax, but someone making a million would pay almost 70% ).

In any case, the tax code in just about every country in the world needs some serious simplifications. For instance I don't think redistributive measures should imply deductions or subsidies, but rather everything should be incorporated in the tax rate (i.e. people with low incomes should pay no or very little taxes, but also don't get any special credits or subsidies). For example some counties here have a special subsidy so that people on benefits can buy a new washing machine if it gets broken - ridiculous.

Originally posted by KazetNagorra
By the way, I was never arguing for 70% tax rates,

I know. I was just teasing you a bit there. But, I figured you'd be proud of the sentiment of my OP. 😉

Originally posted by telerion
It is nice for us that payroll taxes are capped. Unfortunately, we lose pretty big on the future benefits.

With the first time home buyer credit, education tuition deduction, student loan interest deductions, mortgage interest deductions, child tax credit, state/local tax deductions, and the fact that my initial salary and moving benefits were grossed u ...[text shortened]... .

Edit: Although looking at next year, things are less rosey. Beware the "phase out." 🙁

I don't feel guilty about making too much. With what I make it's still not easy paying my normal expenses. I don't live extravagantly; I assure you, but I live in a fairly expensive region and get zapped by mortgage interest and property taxes (2 big deductions! yay!). I don't either feel guilty about not paying enough taxes. The system is what it is.

The only thing I feel is contempt for the government officials and bureaucrats who want to spend, spend, spend; but don't have the guts to tax their citizens to pay for it.

Originally posted by sh76
The only thing I feel is contempt for the government officials and bureaucrats who want to spend, spend, spend; but don't have the guts to tax their citizens to pay for it.

Try telling people at one of those Tea Parties that we need "to tax the citizens to pay for it". Any government official who has the guts to suggest such a thing soon becomes an ex-government official.

Originally posted by uzless
Higher taxes are coming. Don't you worry. My guess is after the next election. If obama wins, he'll have no problem raising taxes since he's out of office after that anyway.

Why not set it up so everyone gives 100% tax to the government? Then they take care of everything. No, wait, that's been done......

Originally posted by Melanerpes
Try telling people at one of those Tea Parties that we need "to tax the citizens to pay for it". Any government official who has the guts to suggest such a thing soon becomes an ex-government official.

I have, and the consensus is that until reform takes place increasing taxes is a nonsequitor.

Originally posted by sonhouse
Why not set it up so everyone gives 100% tax to the government? Then they take care of everything. No, wait, that's been done......

It has?