I know to most, politics and taxes are boring subjects. And they will like to keep it that way. What happens to the tax you pay out of ever paycheck, every thing you buy, every piece of property you own?
Where do politicians get their power? By manipulating the tax code to serve their constituents. What if you live in a democratic state and the party in power is republican or vice versa? The chances are your area get squat. Is that fair to you after paying your portion of the taxes just like everybody else?
Here is something you probably do not hear much about. Death Tax! Scary huh? Let us say you parents work hard to create a small successful business. When they pass away, as the children of the owner you are entitles you succeed that business is it not? Sure you are. You can keep what ever is left after you pay the death tax. And how much is it? about 55%. Imagine, a two million dollar business will lose half of their assets in taxes. Fair?. What would you do in this situation? Where would you come up with about a million dollars to pay taxes and keep the business? Or would you sell the business so that you can just pay the taxed. What about years of hard work your parents put into the business to make it successful?
Don't think it will not happen to you? Consider this.
AMT or Alternative Minimum Tax. The AMT was created 35 years ago to make sure high income-earners did not take advantage of perfectly legal deductions and credits to avoid the payment of taxes. Trouble is, due to inflation the AMT is now sneaking into middle income tax returns. Today the AMT will hit about 3.5 million Americans. I know if the tax code does not change, in a few years I will end up among the millions of Americans that would pay AMT. If you went to college, have a decent job, and are married, you will most likely end up in the same situation.
Okay. I am done ranting. I doubt this post, just like the previous one will generate any interest. Might be because people feel like if you spoke against the IRS they might come knocking down the door and audit you. Or may be because tax is something they have been paying ever since the first dollar you earned and never thought twice how the people we elected manipulate us, using our money to gain power and assume there is nothing to be done.
Just ponder this. When you cast vote at any election, you are giving the person power to act on your behalf. Do you know if the person you vote for have the same ideals and principles you have? Or do you vote for candidates that belong to the party you are registered assuming they have the same view as you? Before the next election, do you self a favor. Find out who is running and what their positions are. Remember: there is always a disparity between Perception and Reality! Do not trust the media, they will only tell you what generate rating for them. Building bridges and schools does not generate nearly as much rating as IED and kidnapping.
Our tax code is progressive. Meaning, the people who makes more money will pay more taxes, and the people who are poor, do not pay any. In other words, being on welfare and unemployment is encouraged and working hard, wise investing and savings are discouraged. Just look at the facts below.
The individual income tax is highly progressive, a small group of higher-income taxpayers pay most of the individual income taxes each year.
Taxpayers who rank in the top 50 percent of taxpayers by income pay virtually all individual income taxes. In all years since 1990, taxpayers in this group have paid over 90 percent of all individual income taxes. In 2000 and 2001, this group paid over 96 percent of the total.
In 2001, the latest year of available data, the top 5 percent of taxpayers paid more than one-half (53.3 percent) of all individual income taxes, but reported roughly one-third (32.0 percent) of income.
The top 1 percent of taxpayers paid 33.9 percent of all individual income taxes in 2001. This group of taxpayers has paid more than 30 percent of individual income taxes since 1995. Moreover, since 1990 this group's tax share has grown faster than their income share.
Taxpayers who rank in the top 50 percent of taxpayers by income pay virtually all individual income taxes. In all years since 1990, taxpayers in this group have paid over 90 percent of all individual income taxes. In 2000 and 2001, this group paid over 96 percent of the total.
The share of taxes paid by the top 1 percent of taxpayers will rise from 30.5 percent to 32.3 percent.
source: U.S. Treasury, Office of Tax Analysis
If you like to know more about the un-fairness of today's tax code and want to do something about it, check out these websites.
http://www.fairtax.org/, http://www.fairtaxvolunteer.org/,
3 comments:
as you know.. i know NOTHING about these things..
---and go under setting then comments, select 'yes' to show word verification for comments, or you'll get all these junk comments in your blog :)
Dude, he's definately British. Thank you for confirming so, in the all-knowing wikipedia.
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