How many on here pay federal taxes??

[kjf48197]

FairTax | American for Fair Taxation | Tax Reform Solutions | Consumption Tax - Americans For Fair Taxation

What is the FairTax?

The FairTax is a simple, fair and transparent solution to replace our current tax system.

It treats all citizens equally and allows American businesses to thrive, all while generating the same tax revenue for the government through the establishment of a national retail sales tax of 23% on new goods and services.

23% on top of all of the other taxes we pay to the state and local gov't. We would be paying more taxes than any of us pay now.

 

[hooky]

23% on top of all of the other taxes we pay to the state and local gov't. We would be paying more taxes than any of us pay now.

No we wouldn't. Just like the current federal income tax, the fair tax would be paid in addition to state and local taxes. That 23% is already embedded in the the products you buy now. With the tax only being collected at retail, they wouldn't already be embedded in the final product. The price of products would fall by the amount of the embedded tax that currently exists.

 

[ATOMonkey]

No we wouldn't. Just like the current federal income tax, the fair tax would be paid in addition to state and local taxes. That 23% is already embedded in the the products you buy now. With the tax only being collected at retail, they wouldn't already be embedded in the final product. The price of products would fall by the amount of the embedded tax that currently exists.

Exactly. The 23% number was derived based on exactly this.

Instead of the Federal Government nickel and diming 23% out of the products you buy, and your income, you just pay it one time at the point of sale.

Food for thought, how much money do you suspect we waste as a country with tax compliance?

 

[hoosierdoc]

I won't post what my wife and I paid in federal income taxes but it makes me want to vomit. The top 10% pay 70% of all income taxes. Do they get 70% of all the services? Probably like 2% of all the services if that.

Let's say the feds waste $1 billion. The bottom 50% pays a total of $19.5 billion in income tax as of 2009 ($282 per person). There were 68.9 million tax returns in the bottom 50%. If you assume the bottom 50% paid the same amount of tax per person (clearly not the case), then the feds wasting $1 billion COMPLETELY WIPES OUT THE FEDERAL INCOME TAXES OF 3.6 MILLION US CITIZENS! If they are paying $282/person and probably low income workers, say $9/hr, then that is 31.4 hours x 3.6 million people or 113.1 MILLION HOURS OF WORK TO PAY FOR ONE BILLION DOLLARS OF WASTE. (I'm comparing this against the individual keeping the entire paycheck which is why I used full $9 to calculate). That is 56,500 people working 2000 hours/year to cover the $1 billion in waste.

"It's only a billion dollars"

This is 2009 data:

Top 1% - $343,927 AGI - 36.7% of all income taxes
Top 5% - $154,643 AGI - 58.7% of all income taxes
Top 10% - $112,124 AGI - 70.5% of all income taxes
Top 25% - $66,193 AGI - 87.3% of all income taxes
Top 50% - $32,396 AGI - 97.7% of all income taxes

http://www.taxfoundation.org/news/show/250.html

 

[Roscoe38]

What really sucks is you pay into Social Security For some 30 to 35 years, both marital partners and the IRS taxes it up to 85%.

What a country. But I have been in several others where the people would gladly pay just to be here.

The best way is to figure your tax percentage from the previous year and have that amount with held or pay it quarterly. More money in your pocket on a weekly basis is your refund.

 

[Pocketman]

I won't post what my wife and I paid in federal income taxes but it makes me want to vomit. The top 10% pay 70% of all income taxes. Do they get 70% of all the services? Probably like 2% of all the services if that.

Let's say the feds waste $1 billion. The bottom 50% pays a total of $19.5 billion in income tax as of 2009 ($282 per person). There were 68.9 million tax returns in the bottom 50%. If you assume the bottom 50% paid the same amount of tax per person (clearly not the case), then the feds wasting $1 billion COMPLETELY WIPES OUT THE FEDERAL INCOME TAXES OF 3.6 MILLION US CITIZENS! If they are paying $282/person and probably low income workers, say $9/hr, then that is 31.4 hours x 3.6 million people or 113.1 MILLION HOURS OF WORK TO PAY FOR ONE BILLION DOLLARS OF WASTE. (I'm comparing this against the individual keeping the entire paycheck which is why I used full $9 to calculate). That is 56,500 people working 2000 hours/year to cover the $1 billion in waste.

"It's only a billion dollars"

This is 2009 data:

Top 1% - $343,927 AGI - 36.7% of all income taxes
Top 5% - $154,643 AGI - 58.7% of all income taxes
Top 10% - $112,124 AGI - 70.5% of all income taxes
Top 25% - $66,193 AGI - 87.3% of all income taxes
Top 50% - $32,396 AGI - 97.7% of all income taxes

http://www.taxfoundation.org/news/show/250.html

Sadly, neither major political party wants to do anything about this.

 

[Roscoe38]

I dont know how many will agree with me but I would much rather pay a federal sales tax insted of an income tax . that way those that make money illegally would pay there fair share . oh and no irs

I always wondered about the 23% on "new" goods and services. Take for example a "new" car...usually made up of about 5000 or so parts, give or take a few hundred. Each "new" part would have a 23% markup that the car manufacturer has to pay in tax. The manufacturer in turn builds and assembles a "new" car that you and I have to pay the 23% markup in taxes. Collectively, the government has gotten 23% in revenue from all the parts and then another 23% when the car is sold. All the while, this cost is being passed onto the consumer because the parts makers and the car manufacturer is not paying for the tax. You have just doubled the amount of taxes you pay to the government for your car purchase.

Yeah buddy, that's a real winner!!!

Or just lump it....A $25000 car would be $5750 more out of your pocket. I think I would stick with the $1750 we pay now.

 

[ATOMonkey]

Or just lump it....A $25000 car would be $5750 more out of your pocket. I think I would stick with the $1750 we pay now.

I believe the 1750 you refer to is state sales tax.

For your post to be correct you'd need to compare the current embedded federal tax in that $25k retail cost vs. the 23% inclusive fairtax rate.

Other people have already done the math if you're interested.

fairtax.org

 

[wizard_of_ahs]

I always end up writing a check for a considerable amount. The G-men just like to take and take...

 

[hooky]

What really sucks is you pay into Social Security For some 30 to 35 years, both marital partners and the IRS taxes it up to 85%.

What a country. But I have been in several others where the people would gladly pay just to be here.

The best way is to figure your tax percentage from the previous year and have that amount with held or pay it quarterly. More money in your pocket on a weekly basis is your refund.

What really, really sucks is the dollar you finally get back 30-35 years later is eroded by inflation.

‎"Inflation is the one form of taxation that can be imposed without legislation."
Milton Friedman

 

[ATOMonkey]

What really, really sucks is the dollar you finally get back 30-35 years later is eroded by inflation.

‎"Inflation is the one form of taxation that can be imposed without legislation."
Milton Friedman

What really really really sucks is the dollar you get was actually taken from your children and grandchildren.

 

[hoosierdoc]

What really really really sucks is the dollar you get was actually taken from your children and grandchildren.

right on. And Medicare... if you make more, you pay more in taxes towards it. When you get on it, your premiums are higher if you made more during your life and paid more into the system. Yet you get the same coverage.

 

[bobzilla]

All said and done the gubment still collects ~ $5600 from us last year. That was after we spent $18k in medical expenses, $11k in mortgage interest etc....DINKS, homeowners.

 

[gyeakle]

I have been paying for 20 yrs. I think we need taxes for sure but the ones not paying or don't even have a job getting a refund seems crazy. Both sides are to blame for this one