yet again the flakes, bumms, looser and lazy ones are beeing rewarded !

NEW -> Contingent Buyer Assistance Program
<p>This argument can't be settled without first defining the reason for taxation. As awgee pointed out, on one side you have the view that taxation is a means to pay for those things we as a country choose to provide to our citizens. As no_vaseline summed up in minimalist fashion, the other view is that taxation is used to "create" an environment where our citizens can prosper. And so begins the 'chicken-or-egg' argument; does government create wealth or does private industry?</p>

<p>Taxes pay for roads, rails, airports, cops, regulators, inspectors, etc. But that is a relatively new development. Transcontinental railroads were privately funded at first, as were most forms of mass transit, and toll roads were invented by people with an eye on long-term investment. It wasn't until after WWII that it became a federal imperative that we have wide standardized highways (for moving nukes and troops), national air traffic control, and stable rail traffic. Which means that prior to that, the private sector was completely capable of providing the infrastructure it needed to conduct business and government was simply there to settle disputes and protect the rights of the parties involved. As far as I am concerned, the idea that private industry would suddenly collapse without out the aid of, and benefit from, public support is a complete load of hogwash being promulgated by people who want to redistribute wealth based on some subjective notion of what is best for everyone.</p>

<p>Is it unfair for someone making $25k to pay $2500 in taxes when someone who makes $2.5m pays $250,000? Only if you think that $2.5m is 'too much' for one person to be making. While some who hold this view may fool themselves into thinking they are being altruistic and have only the greater good in mind, the truth is that they advocate action that would be robbery and extortion if perpetrated by an individual. I think they are rationalizing their own jealousy, couching their desires in populist rhetoric.</p>

<p>I'm not against taxes. They pool money into large amounts so that it can be spent in ways that benifit the population as a whole. National defense is an obvious example, but so is the USDA, the FDA, and the SEC. If the country has need for someting that everyone will use, then everyone should pay for it. But I am not for taxes that exist merely to enrich the federal govenment or to enable wealth redistribution as a means to gather and wield political power. The purpose of taxes is to pay for things collectively that we use individually. While I wouldn't mind having Steve Jobs' money, I can't condone the government taking it from him via taxes so that I can have a slice of his pie.</p>

<p>Here's my economic stimulus plan: Return all government spending to 2005 levels, set a flat tax of 15% on ANY increase in wealth for both businesses and people, pay off the debt with any excess (if there is no excess, reduce the budget equally across the board until there is a surplus), then continue to run a surplus until you have one year's budget + 10% set aside, then reset the tax rate to match what you spent last year.</p>
 
<p><em>Please enlighten me on how this has been shown over and over.</em> </p>

<p>The collapsed Union of Soviet Socialist Republics comes to mind.</p>

<p>The free market enabling Peoples Republic of China comes to mind.</p>

<p>Pol Pot and Khmer Rouge comes to mind.</p>

<p>Cuba comes to mind.</p>

<p>Venezeula seems hell bent on joining them.</p>

<p> </p>

<p>If you want to tax the rich for the benefit the rich receive, you need to tax wealth, which is assets. As it stands today, high income earners, not necessarily wealthy, pay a disportionate amount of taxes, excluding the ponzi scheme called Social Security.</p>

<p>As for estate taxes, frankly, I love them, but they are a bit of a boondoggle. How to tax idle money without crushing currently vibrant privately held businesses that are compiling wealth by providing value. </p>
 
So your example is disability fraud and a second earner that makes so little money that it sets you back. Actually, I don't quite get your numbers - the marriage penalty happens when there are 2 high earners. Let say you are filing jointly and you make $63699 by yourself and $63701 afterwards. You end up in a higher tax bracket but the amount over $63700 will be taxed at that rate - not ALL of your income.


Schedule Y-1 — Married Filing Jointly or Qualifying Widow(er)



<thead>



<th scope="col" id="tbl842id0_0">If taxable income is over--</th>

<th scope="col" id="tbl842id0_1">But not over--</th>

<th scope="col" id="tbl842id0_2">The tax is:</th>



</thead>





$0

$15,650

10% of the amount over $0





$15,650

$63,700

$1,565.00 plus 15% of the amount over 15,650





$63,700

$128,500

$8,772.50 plus 25% of the amount over 63,700





$128,500

$195,850

$24,972.50 plus 28% of the amount over 128,500





$195,850

$349,700

$43,830.50 plus 33% of the amount over 195,850





$349,700

no limit

$94,601.00 plus 35% of the amount over 349,700







<p> </p>
 
You seem to be blaming the failure of socialist regimes on a progressive tax. You mean to tell me that USRR, Cuba, Venezuela would be great capitalist nations if it weren't for their tax scheme??? I should go back to school I guess ...
 
<p>Interesting article...</p>

<p>New York Post - THE REAL SCANDAL </p>

<p><a href="http://www.nypost.com/php/pfriendly/print.php?url=http://www.nypost.com/seven/02052008/postopinion/opedcolumnists/the_real_scandal_243911.htm">http://www.nypost.com/php/pfriendly/print.php?url=http://www.nypost.com/seven/02052008/postopinion/opedcolumnists/the_real_scandal_243911.htm</a></p>

<p>From the current hand-wringing, you'd think that the banks came up with the idea of looser underwriting standards on their own, with regulators just asleep on the job. In fact, it was the <em>regulators</em> who relaxed these standards - at the behest of community groups and "progressive" political forces. </p>
 
<p>green - why not? As the article points out, there is a really good question no one is asking</p>

<em>

<p>At the crisis' core are loans that were made with virtually nonexistent underwriting standards - no verification of income or assets; little consideration of the applicant's ability to make payments; no down payment. </p>

<p>Most people instinctively understand that such loans are likely to be unsound. But how did the heavily-regulated banking industry end up <em>able</em> to engage in such foolishness? </p>

</em>

<p>Check out the byline as well - beats a piece written by some journalism grad interviewing a biased real estate or banker dude. Certainly seemed like the kind of piece that might ruffle too many establishment feathers, so where do you get something like that published? Here's to free speech.</p>

<p><em>Stan Liebowitz is the Ash</em><em>bel Smith professor of Eco</em><em>nomics in the Business </em><em>School at the University of </em><em>Texas at Dallas.</em></p>
 
<p>Who cares? I'd rather read something interesting scribbled in crayon on a napkin than some useless vanity editorial piece all nicely formatted on glossy paper any day.</p>
 
<p>My Wifes Entire Income would be Taxed at 28%.</p>

<p>We prefer she work part time because it works into the kids schooling. No Child care. So she is not a high income earner anyway but it makes it worse when you net it out. </p>

<p>It disuades us from her working. That isn't fuzzy logic. </p>

<p>You made the assumption we both were high income earners that is not always the case, like in mine.</p>

<p>It does not make sense to send a low to median income earner back into the work force when they are taxed at 28%.</p>

<p>Include childcare and the second income disappears almost completely. Where as if she wasn't in that higher tax bracket that might cause the scales in favor of going back to work.</p>

<p>Oh and if your really think only one deadbeat has done the cost benefit analysis of governement housing and government cheese vs working I think you are wrong.</p>

<p> Oh and your question was "Can you name me one example where people won't produce over the minimum because they are getting taxed more when they earn more?"</p>

<p>I gave you two and you dismissed them both. LOL.</p>

<p> </p>

<p> </p>
 
<em>It does not make sense to send a low to median income earner back into the work force when they are taxed at 28%.</em>





Why not? If they earn say $20000 you are talking about $5600 vs $3000. Take home becomes $14400 vs $17000 - vs. $0 if she stays home. Your problem is not with the progressive tax - it's the fact that child care needs to be paid for and there is no assistance from either employer or government (actually, to some extent with flexible spending accounts).
 
<p>The tax is:


<strong>$8,772.50</strong> plus 25% of the </p>

<p><strong>$24,972.50</strong> plus 28%</p>

<p>Did I read that part right?</p>
 
It's a marginal tax table. That is, as you move into a new bracket the rate applies to the marginal amount in that bracket. So, the effective tax rate is somewhere in between. In your example, $24972.50 is the tax paid that falls into brackets 10%,15%,25% which accounts for your income up to $128500. Anything in marginal excess will be taxed at the 28%.
 
<p>trrenter-</p>

<p> I think you would assume that with any reasonable tax plan, your wife's earnings would be taxed. So, when comparing two tax plans, the issue is what are the rates of the tax for those two plans and then what is the difference in the take-home pay from them. Under a regressive, flat tax at, say, 20%, if your wife made $20k, you would pay $4000 in tax. Under the current, progressive tax system, it sounds like you are saying you are in the 28% bracket. So, that $20k of incomes results in $5600 in tax. That is a difference of $1600. That doesn't sound like so much that it would stop her from working if only the taxes were different.</p>
 
<p>So in your example if I make $63,699 I pay $1,565 plus a percentage. If I make $64,701 I pay $8,772 plus a percentage?</p>

<p>I use an accountant so I didn't even realize it was that bad. Is this correct?</p>
 
<p>If you make <strong>$63,699</strong>, you pay $1565 + 15% of the amount over $15,650.</p>

<p>You pay $1565 + ((63,699-15,650) * .15) = 1565 + (48049 * .15) = 1565 + 7207.35 = <strong>8772.35</strong></p>

<p> </p>

<p>If you make <strong>$63,700</strong>, you pay <strong>$8772</strong>.</p>
 
It's a percentage on the amount over the lower bracket limit (the marginal part).





That magic $8772.5 number is $1565 + ($63700-$15650)*0.15. This is the upper limit on the previous bracket. As you can see, it's a continuous graph if you were to plot it.




<col width="64" style="width: 48pt;"><col></col>





8772.5





</col>




 
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