explain tax refund?

[Ranger-rick]

Personally, I'd much rather replace the income tax with a national sales tax. Not everyone pays income tax, but every crackhead and hooker out there has to buy something now and then.

However, if we must have an income tax, I'm an advocate of the flat or fair tax system where every one pays the same percentage no matter what their income is. You shouldn't be taxed at a higher rate just because you have a higher income. Why punish success? The wealthy guy will still pay a larger amount, but the proportion will be the same.

Dude A makes $30k a year, Dude B makes $100k a year. Tax rate flat at say 10% just for a nice round number. Dude A pays $3000 in tax, Dude B pays $10,000 in tax. How would that not be fair?

Now under our current system, people who make under a certain amount pay no income tax, while higher income earners end up footing the whole bill for everyone else, with the "reasoning" being that they can afford it cuz they're "rich". Sounds like there might be some incentive for some to not succeed so they don't have to pay taxes.

The rule of thumb is tax what you want less of, subsidize what you want more of. Now look at what is taxed and what is subsidized in this country and see what our Government's priorities are.

That does not make sense at all. a 10% flat tax would be ridiculous. If we are going to have all of these different tax brackets than we need to be taxed the same way we are accordingly to our income.

Now if you are going to be talking about removing income tax completely and instilling a "fair tax". Where we are just taxed a certain precentage on everythign we purchase with no income taxes taken, then I will agree with that.

 

[bmerr98]

Well, 10% was just a round figure, easy to work with for illustration. My preference would be to replace income tax altogether with a sales tax of some sort. It won't ever happen, but that's what I'd choose. Instead I'll choose to live in a state with no income tax like TN.

 

[orangealpine]

When you speak of taxes, remember that not all of it is federal income tax. First, there is Social Security. That is about 7%. Then Medicare, another 7% (or thereabouts). Also state (almost universal) and local income tax, which is becoming popular. None of this goes toward operating the federal government. Then there is the federal income tax, which for most of us is less is way less than half of what is deducted from pay.

You compare gross vs. net pay and assume that the difference is tax. Not necessarily so. Do you have a health insurance deduction? Retirement?

If the amount being deducted for federal tax is way out of line, check with personel to make sure they have the correct exemptions on file. The federal tax withheld should be within a few hundred dollars of what is owed for the entire year.

But first, look closely at your pay stub, you might be surprised.

Bill

 

[tmcalavy]

Can't do it man...and haven't for at least 30 years...cause I hafta watch my blood pressure. If I could just figgr at way to direct that blood pressure I wouldn't need the pecker pills to correct the old/tired condition caused by makin' someone else rich offa what they've taken from my paychecks since 67. If I had all that dough, I'd have a sweet ride like ol doorgunner.