| Re: Fwd: How Chickenshit Is The IRS? | <– Date –> <– Thread –> |
From: Brian E. Buxton (BrianBuxton BuxtonMotorsports.com)
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| Date: Fri, 28 Sep 2007 17:54:23 -0700 (PDT) | |
I personally think that would be MUCH more fair than the horribly
lopsided (unfairly towards the wealthy) system we currently have.
Everyone would pay equally, no matter what they earned. Or even a
uniform sales tax with no income tax at all. Here are two interesting
reads I have run across in the recent past ...
The Tax Foundation and Congress's Joint Committee on Taxation (JCT) have compiled some useful facts about the federal tax system -- just in time for tax filing season, says columnist Bruce Bartlett.
Here's a few things worth thinking about as taxpayers write their annual checks to Uncle Sam:
* In 2005, the federal government took $2.4 trillion out of the pockets of the American people.
* This is about the same size as the entire U.S. economy in 1959 in inflation-adjusted terms.
* Only two other countries on earth have economies as large as our federal government: Germany and Japan -- and Germany just barely makes the cut.
* China, which everyone is so alarmed about, has an economy significantly smaller than the U.S. federal government, with a gross domestic product (GDP) of $1.9 trillion -- about equal to what the United States raises just from taxes on individuals.
In addition, contrary to popular belief, the vast bulk of federal taxes are paid by the wealthy:
* According to the JCT, 53.7 percent of all federal income taxes were paid by those with incomes over $200,000 in 2006.
* Those with incomes between $100,000 and $200,000 paid 28.3 percent of all individual income taxes.
* Consequently, those with incomes over $100,000 paid 82 percent of the total; they also paid 44.4 percent of all payroll taxes.
* Those with incomes below $40,000 paid no federal income taxes at all in the aggregate.
* The positive liability for those who paid anything was more than offset by tax rebates from the Earned Income Tax Credit (EITC).
* In total, the EITC put $41 billion into the pockets of low-income workers in 2005, 91 percent of it being paid to those with no income tax liability.
Thought this would be a good thing to read since tax season is coming up! This is a good explanation of how the system of income taxes really work!
Sometimes politicians, journalists and others exclaim; "It's just a tax cut for the rich!" and it is just accepted to be fact. But what does that really mean? Just in case you are not completely clear on this issue, I hope the following will help. Please read it carefully as this is exactly how the tax system affects the different income levels. This is not a joke or a spoof.
Let's put tax cuts in terms everyone can understand. Suppose that every day, ten men go out for dinner and the bill for all ten comes to $100. If they
paid their bill the way we pay our taxes, it would go something like this:
So, that's what they decided to do. The ten men ate dinner in the restaurant every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve.
"Since you are all such good customers," he said, "I'm going to reduce the cost of your daily meal by $20." Dinner for the ten now cost just $80.
The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still eat for free. But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his 'fair share?' They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to eat their meal. So the restaurant owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay.
Each of the six was better off than before. And the first four continued to eat for free. But once outside the restaurant, the men began to compare their savings.
"I only got a dollar out of the $20," declared the sixth man. He pointed to the tenth man,"but he got $10!"
"Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too. It's unfair that he got ten times more than me!"
"That's true!!" shouted the seventh man. "Why should he get $10 back when I got only two? The wealthy get all the breaks!"
"Wait a minute," yelled the first four men in unison. "We didn't get anything at all. The system exploits the poor!"
The next night the tenth man 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 didn't have enough money between all of them for even half of the bill!
And that, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit
from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start eating overseas
where the atmosphere is some what friendlier.
President, Brian Buxton Enterprises, Inc.
Nationwide Enclosed Auto Transportation
www.BuxtonMotorsports.com/storage-transportation.php
TAX FACTS
The Tax Foundation and Congress's Joint Committee on Taxation (JCT) have compiled some useful facts about the federal tax system -- just in time for tax filing season, says columnist Bruce Bartlett.
Here's a few things worth thinking about as taxpayers write their annual checks to Uncle Sam:
* In 2005, the federal government took $2.4 trillion out of the pockets of the American people.
* This is about the same size as the entire U.S. economy in 1959 in inflation-adjusted terms.
* Only two other countries on earth have economies as large as our federal government: Germany and Japan -- and Germany just barely makes the cut.
* China, which everyone is so alarmed about, has an economy significantly smaller than the U.S. federal government, with a gross domestic product (GDP) of $1.9 trillion -- about equal to what the United States raises just from taxes on individuals.
In addition, contrary to popular belief, the vast bulk of federal taxes are paid by the wealthy:
* According to the JCT, 53.7 percent of all federal income taxes were paid by those with incomes over $200,000 in 2006.
* Those with incomes between $100,000 and $200,000 paid 28.3 percent of all individual income taxes.
* Consequently, those with incomes over $100,000 paid 82 percent of the total; they also paid 44.4 percent of all payroll taxes.
By contrast, says Bartlett:
* Those with incomes below $40,000 paid no federal income taxes at all in the aggregate.
* The positive liability for those who paid anything was more than offset by tax rebates from the Earned Income Tax Credit (EITC).
* In total, the EITC put $41 billion into the pockets of low-income workers in 2005, 91 percent of it being paid to those with no income tax liability.
Source: Bruce Bartlett, "Tax Facts," Townhall.com, April 10, 2007.
------------------------------
How Income Taxes Work
Thought this would be a good thing to read since tax season is coming up! This is a good explanation of how the system of income taxes really work!
Sometimes politicians, journalists and others exclaim; "It's just a tax cut for the rich!" and it is just accepted to be fact. But what does that really mean? Just in case you are not completely clear on this issue, I hope the following will help. Please read it carefully as this is exactly how the tax system affects the different income levels. This is not a joke or a spoof.
Let's put tax cuts in terms everyone can understand. Suppose that every day, ten men go out for dinner and the bill for all ten comes to $100. If they
paid their bill the way we pay our taxes, it would go something like this:
The first four men (the poorest) would pay nothing. The fifth would pay $1. The sixth would pay $3. The seventh would pay $7. The eighth would pay $12. The ninth would pay $18. The tenth man (the richest) would pay $59.
So, that's what they decided to do. The ten men ate dinner in the restaurant every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve.
"Since you are all such good customers," he said, "I'm going to reduce the cost of your daily meal by $20." Dinner for the ten now cost just $80.
The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still eat for free. But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his 'fair share?' They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to eat their meal. So the restaurant owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay.
And so: The fifth man, like the first four, now paid nothing (100% savings). The sixth now paid $2 instead of $3 (33% savings). The seventh now paid $5 instead of $7 (28% savings). The eighth now paid $9 instead of $12 (25% savings). The ninth now paid $14 instead of $18 (22% savings). The tenth now paid $49 instead of $59 (16% savings).
Each of the six was better off than before. And the first four continued to eat for free. But once outside the restaurant, the men began to compare their savings.
"I only got a dollar out of the $20," declared the sixth man. He pointed to the tenth man,"but he got $10!"
"Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too. It's unfair that he got ten times more than me!"
"That's true!!" shouted the seventh man. "Why should he get $10 back when I got only two? The wealthy get all the breaks!"
"Wait a minute," yelled the first four men in unison. "We didn't get anything at all. The system exploits the poor!"
The nine men surrounded the tenth and beat him up.
The next night the tenth man 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 didn't have enough money between all of them for even half of the bill!
And that, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit
from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start eating overseas
where the atmosphere is some what friendlier.
David R. Kamerschen, Ph.D Professor of Economics University of Georgia
Brian
Tom Reynolds wrote:
How about the flat tax that Steve Forbes was advocating during (one of) his
Presidential campaign? Everyone pays, what, 15%? Or whatever. Pluses,
minuses, etc.?
Best regards,
Wanting to see your viewpoint, Dennis.
Tom
----- Original Message ----- From: "Dennis Liu" <bigheaddennis [at] gmail.com>
To: "Tom Reynolds" <kjtar [at] cox.net>
Cc: "'The FerrariList'" <ferrari [at] ferrarilist.com>
Sent: Friday, September 28, 2007 10:18 AM
Subject: Re: [Ferrari] Fwd: How Chickenshit Is The IRS?
haveHey, since we're apparently going completely off-topic today...
Willi, I'm easily among the more extreme in terms of criticizing our tax policies, but don't lose that tenuous grip on reality, ok? :-)
Of course the house is taxable. Why the heck not? It's attributable as income to the recipients.
Ah, but one might protest, "it's not fair! This is a worthy family, why should they get taxed on something really nice?"
Because tax codes (and laws in general) have to be written so that they
togetherutility and broad application.
1. Single mother of four kids, in desperate circumstances, receives free house. Pay tax on it? No? Ok.
2. Middle-class family, not on food stamps but working two jobs each, receives free house. Pay tax on it? No? Ok.
3. Upper-middle class family, husband is a doctor, wife is an accountant, receives free house. Pay tax on it? Yes? Ok.
How do you distinguish between these scenarios? Do you want to put
toa panel of judges to decide if a case is worthy enough to avoid taxation?
Don't forget - if a recipient is "poor" enough, her tax bracket is much lower than "wealthier" recipients, so she's ALREADY paying much less tax!
And don't forget too that, as ever, "money is fungible."
If instead of getting the house, the family in question got $500k in cash
itspay for a new house. Should that be taxable? No? Apply the same test above.
Bottom line, the family may indeed not be able to afford to pay the tax bill. While it may suck that they will have to sell the house and use the proceeds to pay the IRS, they are STILL WAY AHEAD!
I'd LOVE it if someone tore down my shack, built one worth a lot more in
haveplace, and I sold it, paid the taxes, and bought another house elsewhere that, while not as nice as the new one, is still much better than my old shack.
Yeesh.
Vty,
--Dennis
-----Original Message----- From: red5hilser [at] aol.com [mailto:red5hilser [at] aol.com] Sent: Friday, September 28, 2007 11:08 AM To: Dennis Liu Cc: The FerrariList Subject: [Ferrari] Fwd: How Chickenshit Is The IRS?
Hey Todd: You wonder if the family that got the 'Extreme Makeover' will
Heavyweightto pay taxes to the IRS for the value of the upgrade? LMFAO! Does the old song, 'Tax Man' ring a bell?
Yer pal, Ferrari Bubba
Subject: How Chickenshit Is The IRS?
I watched?the Bud Greenspan documentary' "Kings of the Ring: The
Champions' on Sundance today.?Bud brought up the story of Joe Lewis andhow
he was shafted by the IRS during WW2. After Pearl Harbor, Joe enlisted inwho
the U.S. Army as a private. Not like most of the 'fairy' Hollywood types
went in a captians, majors, etc. and never left Hollywood.?In his off-dutyIRS
time he held boxing exhibitions to help raise money for our fighting men.
Although he donated every dime of the money to the War Relief Fund, the
said it was 'taxable income' and took what money he had saved during hisin
career before the war. Joe ended up penniless as a greeter for some casino
in Las Vegas before dying broke. Later, my 1st wife and I were in a joint
'Vegas one night and met Sonny Liston, working the same kind of gig. TheMohammed
'Little Lady' went over to him and asked, "Hey, mister, aren't you
Ali?" Sonny took a long, hard look at her and said, "lady, where's yourbeloved
husband, I want to knock him out" as I slowly backed away, complimentary
drink in hand.. Knowing Greenspan's rep as a stright shooter and our
http://lists.ferrarilist.com/mailman/options/ferrari/bigheaddennis%40gmail.cgovernment, I believe it's a true story.
Yer pal, Ferrari Bubba Email and AIM finally together. You've gotta check out free AOL Mail!
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-- Brian E. Buxton
President, Buxton Motorsports, Inc . www.BuxtonMotorsports.com (812) 476-2281 x 209 Member ThaList.com
President, Brian Buxton Enterprises, Inc.
Nationwide Enclosed Auto Transportation
www.BuxtonMotorsports.com/storage-transportation.php
Founder & Past President SO. IN Region PCA www.pca.org/soi
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Fwd: How Chickenshit Is The IRS? red5hilser, September 28 2007
-
Re: Fwd: How Chickenshit Is The IRS? Dennis Liu, September 28 2007
- Re: Fwd: How Chickenshit Is The IRS? LarryT, September 28 2007
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Re: Fwd: How Chickenshit Is The IRS? Tom Reynolds, September 28 2007
- Re: Fwd: How Chickenshit Is The IRS? Brian E. Buxton, September 28 2007
- Re: Fwd: How Chickenshit Is The IRS? Paul Bennett, September 30 2007
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Re: Fwd: How Chickenshit Is The IRS? Dennis Liu, September 28 2007
- Re: Fwd: How Chickenshit Is The IRS? Hunter N. Schultz, September 28 2007
-
Re: Fwd: How Chickens*t Is The IRS? Dennis Liu, September 28 2007
- Re: Fwd: How Chickens*t Is The IRS? red5hilser, September 28 2007
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