Sunday, June 5, 2011
Personal Income Taxation
The federal personal income tax is a progressive tax. Which is basically saying that the more money you make the higher your tax percentage is going to be. And most days i would agree with this but for the sake of argument ill take the rich people side. Now if i busted my hump everyday of my life and somehow became as rich as i would like to be why should i have to be taxed more just because i worked harder or has a better idea. when someone who is living decently working 40 hours a week doing something is getting 50 grand a year of taxable income and getting taxed 5% ( i don't know the figures but i'm just giving an example) and i am working 60 hours a week managing a corporation that employs thousands of people and gives back to the community and im making ( a comfortable) half million dollars a year but im being taxed 25% that doesn't seem to be too fair. Not saying i'm working harder that the other making 50 grand but i am doing a lot more things and responsible for a lot more people. I just do not think one should be taxed according to the amount of money they make. it should all be one level for everyone like the constitution says " all men are created equal" and should be taxed the same way.
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If all tax were equal were would the bar be set? How would people like those in poverty or retired on fix incomes pay this tax? The amount of tax you pay on your income depends on the amount you can reduce your taxable income by. There is a standard deduction or itemizes deduction. Depending on your filing status the amount of your stand deduction varies. The amount of the standard deduction is set by the IRS and can change from year to year. Itemize deduction is where you prove that your expenses medical, mortgage, property tax, sales tax, charitable contributions, ect are more than your stand deduction. You also receive an exemption amount for each individual on your income tax. The exemption amount is IRS mandated and can be changed any year. There are other ways to reduce you taxable income but the Exemption and deduction are the major contributors. (Business or self employed loss too) The amount remaining after these deductions are taxed.
ReplyDeleteI agree with one tax rate for every income wage earner, with no deductions a a rate of 12.8%. No matter if you made minimum wage ($7.25/hr) and gross income $15080 or $1,508,000 eac person gets no deductions, and pays 12.8% which happens to be the current rate for a self-employed person single reporting. It shouldn
ReplyDeletet matter if you are married or not and have children or not, still should be same for each person.
The second response here is regards the standard deduction. The standard deduction is just an equalizer, and adjust downward the gross income amount you made in one year to what that same amount would be in 1970's dollars which is when we started this continuous inflation of the dollar. Today it take almost twice as much minimum wage dollars to pay for the same things you get now as then.
Rent was $300 now it is $750. Gas was a dollar now it is three. Electricity for the same 1000 kilowatts today at $171.00 was just $81 dollars.
If we had to pay taxes on the full gross amount today, people would not be able to afford housing, electricity or anything. The person who gets the standard deduction on minimum wage gross, is to pay about $700 in taxes, but if had to pay on the full gross it also bumps up to higher tax bracket so taxes due would be a bit over $2000.
They borrowed $1.4 Trillion and put $5000 more on my name owing to CHina which I don't personally get to use any of that $5000 "I" borrowed, well co-signed for, and then want all the taxable amount, without standard deduction, and want to borrow another $5000 (1.5 Trillion) on my name next year and again I get none of it to use the way I want to....