A Different Way of Explaining Taxes

Tax Free Tennessee ^ | Unknown

[WhiteGuy]

All taxation on American citizens sucks money out of the economy.

[KansasGirl]

No, more like 1-4 gets all the pizza and soda, 5-6 are considered too wealthy and get nothing.

[VRWC_minion]

Two problems, one minor, one major. The minor one is payroll taxes is on all earned income.

The major problem is that payroll taxes are to fund a retirement benefit and not to fund the general expenses. So, the more accurate statement is that the government forces lower income people to fund for retirement at a higher portion of thier income than high income people.

We should not force them and we should let them have more control over their own retirement funds.

[Red Jones]

lots and lots of people pay zero payroll taxes at all. I work as a consultant, I get an hourly fee, I pay zero payroll taxes.

[KansasGirl]

Make that 5-10 recieve nothing.

[VRWC_minion]

No, more like 1-4 gets all the pizza and soda, 5-6 are considered too wealthy and get nothing.

LOL, and if the 5-6 even ask if they could have the leftovers that 1-4 didn't even eat they are accused of wanting to starve the poor.

[VRWC_minion]

lots and lots of people pay zero payroll taxes at all. I work as a consultant, I get an hourly fee, I pay zero payroll taxes.

You don't pay SE tax ?

The high rollers would love to hear how you legally avoid SS and Medicare tax.

[Red Jones]

I don't know how it works, but when I work as an employee at a lower wage through a consulting agency I have taxes with-held and the tax rates are higher. But when I work as a consultant and am paid direct and a much higher rate, not through an agency, then I don't have it withheld and the tax rates end up being a lot lower. Come to think of it I know my tax consultant does take some money for social security tax, but it ends up being very low compared to what it would've been if it was a regular paycheck with the standard payroll taxes.

[Deuce]

Assume they ordered two pizza slices each and a soda.

Under your assumption of equal shares in the proverbial pie, the 6th-10th guy should certainly get the cost reduction. Under other assumptions, not.

[VRWC_minion]

but it ends up being very low compared to what it would've been if it was a regular paycheck with the standard payroll taxes.

Your SE tax is designed to be exactly the same as your payroll tax. In fact as a self employed you pay for both the employer and employee portions.

If you have in the past gotten paid as employee and as self employed your employee W/H was probbaly enough to cover your extra SE tax. However if in a year you mostly get self-employed income and you are not setting aside another 15% your going to get a big surprise.

[VRWC_minion]

Under your assumption of equal shares in the proverbial pie, the 6th-10th guy should certainly get the cost reduction. Under other assumptions, not.

How is it in the federal government ? Does the rich guys limo cause similar wear and tear on the roads as my Ford Taurus ?

Does the military that protects the rich guys life also protect my life ? Are the poor getting extra benefits because they are poor ?

[Deuce]

You seem to be making the analogy that the man who pays 59% of the total tax bill is getting 59% of the total government services.

No, it is impossible to make such an assessment. What I'm saying is that if the government did not exist, the 10th man would have only a minor fraction of what he has with the government. People who benefit the most should pay the most.

[Age of Reason]

Tax them too much, attack them for being wealthy, and they just may not show up at the table anymore. There are lots of good restaurants in Switzerland and the Caribbean.

So what you're saying is the rich have so much power, they can hurt us if we don't give them what they want?

[VRWC_minion]

correction:

So what you're saying is the rich have so much power freedom of choice, they can hurt us if we don't give them what they want make it financially unreasonable ?

[Age of Reason]

The nine men surrounded the tenth and beat him up. The next night he didn't show up for dinner, so the nine sat down and ate without him. But when it came time to pay the bill, they discovered something important They were $52 short.

LOL.

Those nine fools forgot to get his wallet!

Did they beat up the waiter next?

[Deuce]

Do you not recognize that in the absence of government Bill Gates would have a small portion of what he has now. Ipso facto, Bill Gates "benefits" from government and should pay a hefty share for its upkeep.

[Age of Reason]

What is money, if not power?

[Age of Reason]

You can't find a better historical example than that 10% "luxury tax" implemented in 1990 or so. The only ones who suffered were the American boat building companies - the "rich" simply went over to Europe (or elsewhere) to buy their new boats.

Sounds like another good argument against a national sales tax.

The poor and middle class will find it impractical to escape tax on life's necessities, like food and simple clothing, while the rich can afford overseas luxuries.

[VRWC_minion]

Do you not recognize that in the absence of government Bill Gates would have a small portion of what he has now.

And our combined wealth as a nation would be far less so that I would be much poorer. In fact, I would be still be preparing income tax returns using a service a bureau and my clients would be paying much higher fees.

Do you not recognize that in the absense of taxes we would have a larger portion of what we have now ?

[VRWC_minion]

What is money, if not power?

I think you are confused. Money is not power. In fact the most powerfull man ever had little more worldly belongings than a tunic.