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The Dirty Secret of How Income Taxes Really Work
americanthinker.com ^ | 6/23/2017 | Bart Besseling

Posted on 06/23/2017 7:21:20 AM PDT by rktman

For the sake of this argument, let's divide the population into three groups. The first group consists of children, dependents, retirees, and those who manage to live off government handouts like disability, food stamps, etc. This group does not earn enough income to contribute to income taxes.

(Excerpt) Read more at americanthinker.com ...


TOPICS: Business/Economy; Government; Philosophy
KEYWORDS: 1040a; taxes
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Food for thought. Take a percentage and file no paperwork. No deductions, no loopholes, no refunds. Of course the IRS would have to lay off a LOT of govt union members. Some overseers would be required to ensure everybody was ponying up their fair share. Let 'er rip.
1 posted on 06/23/2017 7:21:21 AM PDT by rktman
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To: rktman

This kind of feels like a convoluted way of saying “the marketplace determines what you can charge for your labor”.

I believe income tax is wrong on its face. I prefer some type of sales tax. Almost no paperwork, almost no bureaucracy.


2 posted on 06/23/2017 7:25:22 AM PDT by ClearCase_guy (Islam: You have to just love a "religion" based on rape and sex slavery.)
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To: rktman

That is how it’s done in Britain (or was done in the 80’s) You work and the Government takes exactly what it wants with no breakdown of where each pound goes. Once a year, you get a little postcard in the mail telling you how much the Government took. When I worked there, I wasn’t registered in my field (but they let me work anyway). I was making PEANUTS because I wasn’t registered, and they still took 50%. That’s how Socialist countries try to get the money to pay for all their ‘programs’ (including the NHS). Yet, they all still run short.


3 posted on 06/23/2017 7:30:03 AM PDT by originalbuckeye ("In a time of universal deceit, telling the truth is a revolutionary act." - George Orwell)
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To: rktman

Even better, apportion the projected budget out to the states based on their number of representatives and let the states figure out how to pay the bill. You like progressive income tax? Move to a state with that. You want flat tax? Move to a state with that. Like a sales tax? Move to a state that does that. Everyone wins.


4 posted on 06/23/2017 7:30:11 AM PDT by Boogieman
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To: ClearCase_guy

Not only wrong, but immoral and unconstitutional. What does a man possess inviolable other than his soul and the fruits of his labor or the creativity of his mind?

Why does anyone or anything, other than God, have a claim against those things.

It is slavery, just as surely as it was for those who worked on plantations prior to the Civil War.

Slavery is but an income tax rate of 100%. Any lesser percent is but a matter of degree.


5 posted on 06/23/2017 7:31:38 AM PDT by abb ("News reporting is too important to be left to the journalists." Walter Abbott (1950 -))
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To: ClearCase_guy

The core problem is the spending.

The more spent, the more they need to come up w/hairbrained schemes to increase taxes, like bags taxes, etc..

Income taxes came about to fund wars.


6 posted on 06/23/2017 7:31:40 AM PDT by fruser1
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To: rktman

And I forgot to add, there are no deductions for anything. Maybe that is one reason there are so few Charities in Socialist countries....no deductions for charitable contributions.....or maybe they are really just heartless.....or maybe the citizens just expect the Government to take care of EVERYTHING.


7 posted on 06/23/2017 7:33:44 AM PDT by originalbuckeye ("In a time of universal deceit, telling the truth is a revolutionary act." - George Orwell)
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To: rktman

>>Here is an idea: each year, we take the amount that our politicians spend, add any budget overruns from prior years, and divide it by the value of everything that has changed ownership that year. Then we get the banks to deduct the tax for each dollar that changes hands equally. Now everybody (and every corporation) pays “his equal share” of the policies, defense, and handouts we vote for. The three groups still operate the same way, but at least the middle class no longer penalizes itself for its class envy.<<

That is a national sales tax. It would be fairest, but I would have great fear of the income tax coming back and getting BOTH national Sales AND income tax. It is a constant fight here in Texas.


8 posted on 06/23/2017 7:37:31 AM PDT by freedumb2003 (The Civil Rights movement compared content of their character to skin color and chose the latter)
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To: originalbuckeye

>>no deductions for charitable contributions.<<

FWIIW: I give a LOT to charity and I have taken the standard deduction for at least the last 10 years.

There have been many studies that show conservatives give much more to charity than liberals.


9 posted on 06/23/2017 7:39:47 AM PDT by freedumb2003 (The Civil Rights movement compared content of their character to skin color and chose the latter)
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To: rktman
It is useless to try to get the "rich to pay their fair share" through progressive taxes.

This analysis is deeply flawed. First, it assumes that the services for the "rich" is totally inelastic. That is, Harrison Ford can completely pass on his total income tax bill onto producers and, hence, the viewing public. Not so. History is filled with examples of stars who demanded too much and lost the part. Secondly, if the rich really don't pay "their fair share", why is it that 72% of all income tax revenues comes from the top 10% income earners? Personally, I'd lower taxes across the board to 17% and everyone pays that rate; no deductions. I don't care that you only make $10,000/year, you owe $1700 in taxes. If you don't have any earned income and pay no federal income taxes, that's fine, but you don't get to vote in federal elections. Same for state and local. After all, no skin in the game, why should you have a voice in how that income is spent? To me, if you can fog a mirror, you should be working. Exception: Those who have retired and paid their way for 40+ years.

10 posted on 06/23/2017 7:46:00 AM PDT by econjack
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To: freedumb2003

Yes. And in Socialist countries, one would assume that they are packed with Libs who do believe the Government should take care of everything. My British in-laws do not understand the American way of life and it’s expected freedoms. About our health care system, all they hear is about how people go bankrupt from medical bills. But I never hear how they feel when health care is withheld over there.......and it is, particularly from the elderly.


11 posted on 06/23/2017 7:46:16 AM PDT by originalbuckeye ("In a time of universal deceit, telling the truth is a revolutionary act." - George Orwell)
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To: Boogieman

That’s a pretty decent approach. Until...

The folks from the states that have the “progressive” tax that find it’s really more “regressive” begin to leave that state. They move to the other states with the flat tax. Elect people that get a “progressive” system set up. Which becomes “regressive”, of course, over time. Move to next state. Repeat. Ruin state. Move on.

Sound familiar at all?


12 posted on 06/23/2017 7:46:48 AM PDT by Zarro (Oh, we don't call them the "MSM" any longer; they are now the "Basket of Detestables")
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To: originalbuckeye
“Maybe that is one reason there are so few Charities in Socialist countries”

The government is the “charity”.

Under Pax Roma food and circuses kept the population under control

Under socialism handouts, welfare, freebies, and non-taxation keep the population voting for bigger government.

Some liberal Christians looks at their government contributions (taxes) as their tithes and offering, and see no reason to give otherwise.

Government has become their religion.

13 posted on 06/23/2017 7:46:59 AM PDT by Yulee (Village of Albion)
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To: econjack

I am also for a flat tax. But be careful with that denying the vote idea.........


14 posted on 06/23/2017 7:48:16 AM PDT by originalbuckeye ("In a time of universal deceit, telling the truth is a revolutionary act." - George Orwell)
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To: rktman

When we can run up a deficit of 21 trillion bucks without consequence, what’s the point of even paying taxes anymore? Think about it.


15 posted on 06/23/2017 7:50:11 AM PDT by 3boysdad (The very elect.)
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To: freedumb2003

Yeah, those who complain about the charitable contribution forget that when one contributes $1.00, they receive the maximum benefit of 39 cents in tax reduction.

Like you, we have never claimed contributions albeit we give a decent amount to church and a social service organization. Not to misunderstand, if we were able to exceed the amount of the standard deduction, where the government actually lets us keep some of our earned income, we surely would use it!


16 posted on 06/23/2017 7:50:59 AM PDT by Mouton (The MSM is a clear and present danger to the republic.)
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To: rktman

FAIR TAX NOW!

allow states to collect and send to the Feds... slay the IRS Beast


17 posted on 06/23/2017 7:51:48 AM PDT by teeman8r (Armageddon won't be pretty, but it's not like it's the end of the world.)
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To: abb

In the Old South wages were typically very low but were nonetheless paid to slaves. Housing was provided. Opportunity for work with payment on the side was normal. A well run slave plantation was never animals kept in a cage, thrown slops and whipped into the field to work. IOW slaves were not treated as cattle. They were permanently indentured servants. Not a pleasant life or even a desirable one but bearable.
Today’s slaves are treated very differently. They do not have the dignity of labor. They are kept in caged ghettos, fed slops, and provided enough drugs and guns to control the population. And, oh yes, they are represented by the likes of Maxine Waters. These Masters of the Universe grow rich on the misery and anger of their constituents.


18 posted on 06/23/2017 7:52:55 AM PDT by Louis Foxwell (Progressivism is 2 year olds in a poop fight.)
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To: Mouton

>>Not to misunderstand, if we were able to exceed the amount of the standard deduction, <<

IIRC quite few years back you could take both. Now that I am a C-Corp I took them again this year. No guilt at all.


19 posted on 06/23/2017 7:53:27 AM PDT by freedumb2003 (The Civil Rights movement compared content of their character to skin color and chose the latter)
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To: rktman

I haven’t paid in about 16 years. After 7 years, they stopped collecting.

I don’t work W2. I stopped paying taxes because I used to work in government and saw where my money went, how much of it is actually real and how useless it is. That was under Clinton.

Then in 2010 Pelosi threatened to “Deem it passed” and that was the last straw. They didn’t “deem it passed” but still the idea that they would do that is breaking their contract with the people. Taxation without representation.

Under Obama I continued to not pay because I won’t be part of that mess. If my 2nd amendment rights are restored, I will start to pay again.

They broke the contract. I was single and footloose when I started, but after a few years they stopped even collecting. I have bought a house and cars in that time and my credit isn’t bad. I live a normal life ... outside of the whole not working W2 thing. I work 1099 or I just work for cash.

Your tax dollars don’t fund anything. Don’t worry about it. It’s like tuition at Yale University - 15% of Yale’s revenue is from tuition. They now offer many classes for free and with accreditation.

Money is mostly an illusion, and has been since we were removed from any physical standard and saw the rise of “Credit”. It’s simply not real. And we enjoy more things in our first world life than can actually be paid for.


20 posted on 06/23/2017 7:53:44 AM PDT by Celerity
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