J
Johnd
Audioholic Samurai
What do you mean by more? They are both in the same bracket (35%).700,000.00 a year pays more toward taxes than someone who earns 100,000.00
What do you mean by more? They are both in the same bracket (35%).700,000.00 a year pays more toward taxes than someone who earns 100,000.00
As I'm not near 300K, I'm not familiar with all the loopholes, but everything that you mentioned there is available to the person earning 25K, isn't it? A question, not a statement.The average person who makes, say, 300k a year, pays:
35% federal tax (gross)...but wait. We must first deduct losses, deductions, depletions, depreciation, credits, etc., etc., etc. Whereby, we can now get the gross income down to say 50k.
Yes, but by the same token, the person making 25,000.00 a year also has deductions too. Losses, clothing (if used in work), dry cleaning, kids, etc. That's why I tell my friends always to check with a cpa before filing taxes, there are hidden deductions that accountants are aware of that can help you. If you go at it alone you could miss out.Well, on the surface, that comment is accurate. But our tax system, though based on a sliding scale, is not a simple sliding scale.
The problem is (or so I've heard) that the average person who makes, say just 25k a year, pays:
15% federal tax (gross)
8% state tax (gross)
7.65% fica (gross)
say pays 7k in rent or home loan
and of the remaining $10,337.50 remaining, must purchase gasoline, heat, food etc. All of which is taxed, except for the food.
So you can see how one making just 25k per annum can be taxed 40%.
The average person who makes, say, 300k a year, pays:
35% federal tax (gross)...but wait. We must first deduct losses, deductions, depletions, depreciation, credits, etc., etc., etc. Whereby, we can now get the gross income down to say 50k.
One can easily see the inequities in the current tax structures.
My mistake, I thought 100,000 was 25 or 30% (my wife knows, she handles that department!)What do you mean by more? They are both in the same bracket (35%).
Well, they're not "loopholes." They are exactly what the IRS has defined them to be: losses, deductions, depletions, depreciation, credits, etc., etc., etc.As I'm not near 300K, I'm not familiar with all the loopholes, but everything that you mentioned there is available to the person earning 25K, isn't it? A question, not a statement.
Accountability. The GAO has some splaining to do Lucy.Speaking of the homestead exemption, now there's something that is worthless. My exemption is $15K. Big whoop. The effective property tax rate is 3.1%.
The majority of the property tax is for funding schools and I have no qualms about that because education is important. But why are property taxes so high when the lottery has supposedly contributed $9 billion over the last 9 years? [That's a rhetorical question, I know why.]
Here in Florida the exemption is 25,000.00 and if you're over 60 they give an additional 25,000.00 I don't know how you guys calculate your real state tax, here it's based on the millage each city and/or county charges, that's why expensive neighborhoods tend to pay more taxes.Speaking of the homestead exemption, now there's something that is worthless. My exemption is $15K. Big whoop. The effective property tax rate is 3.1%.
The majority of the property tax is for funding schools and I have no qualms about that because education is important. But why are property taxes so high when the lottery has supposedly contributed $9 billion over the last 9 years? [That's a rhetorical question, I know why.]
WE lucked out in insurance, we have Amica and we only pay about 2500.00, this is the excception to the rule, again our house has some really good upgrades against storms. Our real estate taxes are so loopy, that regular folks can't afford to buy a home, the market notwithstanding.Yes, I grew up in FL and still have friends and family there.
My sister's situation is the opposite of me in TX. Her property tax is only a few thousand whereas insurance is through the roof and nearly the same as my property tax. My property taxes are high (IMO) but insurance is cheap.
My insurance agent likes to joke that he rents his lot from the city for $10K per year.
The tax accountant I worked with for the 2006 taxes was going to let me deduct the state tax on my plasma and receiver. Now that is a deduction I could usebut wait. We must first deduct losses, deductions, depletions, depreciation, credits, etc., etc., etc. Whereby, we can now get the gross income down to say 50k.
True statement. Check out http://www.fairtax.org though. One of the best features is that it ensures that you don't pay any tax on purchases up to the poverty line. The tax money is "prebated" at the beginning of the month for subsequent purchases. Any purchases above the poverty line are subject to taxation, but then again, that's the first tax you pay. In the current system, the very first dollar of income is subject to payroll taxes. Under the proposed system, the poor aren't taxed in any form.A flat 20% tax would actually be quite burdensome on lower income families as would a consumption tax instead of an income tax. Lower income families spend substantially all of their income on day to day basic living expenses and would have practically nothing left if there were a consumption tax.