On May 24, 10:20 am, "Frank Berger" <
frankdber...@gmail.com> wrote:
>
>
> > Typical RW blather about the people who don't pay federal income
> > taxes. Frank doesn't mention that the reason they don't pay such taxes
> > are because they live in poverty.
>
> All of them? Who defines poverty?
The Feds through HHS and the Census. There are two different official
measurements.
A family of 4 subsisting on $23,050 is living in poverty. That was 15%
of the population in 2010. Add to them the number of people living in
relative poverty, and the number jumps to 42%.
> > On the other hand, these poor people do pay FICA taxes on 100% of
> > their income, whereas a person who earns $1mm a year pays FICA taxes
> > on only the first 10% of their income, while a person making $10-mm a
> > year pays FICA taxes on only the first 1% of their income. Where's
> > Frank's outrage about that lack of fairness?
>
> What do you think was the reason for setting it up that way? I haven't
> thought about this and prepared to be outraged.
The explanation I have heard is that the cap on taxable income is
based on what a person can be expected to receive in SS benefits,
which are also capped. The cap on income subject to FICA tax right now
is $106,800. The maximum monthly SS benefit for a person retiring in
2012 at age 66 is $2513. The idea being that if people are taxed
beyond the current $106,800 limit, they will see no benefit to
themselves (as far as their monthly SS check) from their higher
contributions to SS.
Of course, that is an arbitrary rule, because there are plenty of
people who pay into SS for decades and never see a red cent in
benefits because they die before they retire. I don't see the
government refunding all of those FICA taxes to the survivors of a
person who dies before reaching retirement age. And, of course, there
are those people who outlive the median age for SS recipients and draw
much more from the fund than they ever put in.
> > And of course, those people who don't pay federal income taxes still
> > pay all kinds of other taxes, like sales tax, state and local taxes,
> > government fees, etc,
>
> Really poor people don't pay that much in sales taxes, since at least where
> I live food is exempt. And you don't pay sales tax on rent. Really poor
> people are probably net beneficiaries of government, not net supporters.
But the really poor are only 15% of the populace. Your original post
complained that HALF of Americans don't pay any Federal income taxes.
Ergo, that remaining 35% of that half ARE paying a lot in sales taxes.
They may not be paying taxes on rent, but they're also not getting a
big fat Federal deduction for mortgage interest as is every
homeowner...or if you're rich, homes owner.
>
> > ie: those regressive taxes that don't take into
> > consideration a person's ability to pay them. A driver's license costs
> > you the same whether you make $30k a year or $10-mm a year. Ditto the
> > taxes you pay on groceries, gasoline, cars or any other commodity you
> > purchase.
>
> > When it comes to big ticket items, the wealthy are always better off
> > than the poor, because their wealth secures them the very best credit
> > rating, which means that the APR on their credit cards is as low as it
> > can be, which hardly even matters as they can usually pay cash for
> > everything they want and avoid paying cc fees and interest altogether.
>
> I guess it pays to get educated, work hard and become rich.
Like Mitt Romney's kids? Like Poppy Bush's son George, who got in the
best schools in the country based on who his dad was?
Your snarkiness might be abided were the conservatives in this country
not hell bent on dismantling the public education system and taking
away the opportunity for a decent education from many people in this
country whose only sin was in not being born with rich parents.
>
> > Surely Frank knows that the most-profitable demo for the cc companies
> > are the poor and lower-middle class, because those are the people with
> > limited access to credit, and who use credit to make ends meet, and
> > who often miss a payment or two a year which results in their APR
> > skyrocketing as they incur late fees etc that a wealthy person will
> > never see.
>
> How do you know what I know? Most of what "I know" you disagree with
> anyway.
Well, if you happen to know these things, why not mention them in your
arguments? Why are these very salient factors left out of your
conservative economic scribblings?
>
> > How else to explain an ass like Donald T. Rump
> > being able to stay monied and buying properties and ventures left and
> > right while going through bankruptcy proceedings numerous times? That
> > avenue certainly isn't open to the Average Joe who is trying to pay
> > his mortgage.
>
> I know average Joes who have gone though bancruptcy and recovered.
Not the question. I've gone through a short sale on my last home
myself, which while not as bad as bankruptcy still puts a negative on
your credit rating for a few years. What I don't know is Average Joes
who have been afforded the opportunity to take out massive loans to
open and acquire businesses while going through bankruptcy, which is
what T. Rump has gone on numerous occasions.
> > So why are conservatives so hing up on the bug-a-boo of people not
> > paying federal income tax?
>
> Simply because it distorts voting incentives. It's not healthy.
Wow. Now, THAT is lame.
> >It's not like income tax is some kind of
> > hallowed tax that doesn't cause people pain in their pocketbooks. One
> > would think that people who have done well in this country would feel
> > great about paying income taxes that can be used to help the country
> > in general prosper. But, no. The more they are given, the greedier
> > they become. The more they are advantaged, the more they despise the
> > disadvantaged.
>
> > You know, if you were to offer the average wage earner the chance to
> > make a million bucks a year and pay a 90% tax rate, most people would
> > take that deal, because at the end of the year, they'd net $100,000 in
> > their pocket, and that's equal to more than twice what the average
> > family of four lives off a year in gross income. So it's hard for the
> > average person to see why the rich complain about having to pay a 39%
> > tax rate like they did under Clinton.
>
> How hard would a person who makes 75,000 work to get his income up to a
> million if he was only going to net an additional 25,000. Do you have any
> idea how *hard* most people who "make it" worked in order to succeed?
Interesting that you mention $75k as that seems to be the threshold
for living comfortably beyond a middle-class income without incurring
the economic "problems" that occur as one earns more. Personally, I
was happy when my income was in the $75k range. When it eventually
moved higher and even doubled that in a couple of different years, I
was more than happy to pay a higher tax rate than I had at $75k. To
me, that's simply the price of citizenship. Plus, I had plenty of
money left over. I did not feel abused paying out $30,000 in taxes,
and I felt that I worked my ass off for that money.
I guess it comes down to what be considers to be "making it." If money
is your only barometer, well, then go join the Republic Party and look
down your highly monied nose at the rest of us. If making it means
being comfortable enough to not worrying about how you're gong to feed
your kids, then you don't need millions, at least in this country.
>
> > On the other hand, I can see why rich people like the idea of a flat
> > tax.
>
> How do you explain that a lot of people who aren't rich favor a flat tax?
Their either stupid, or they've drunk the conservative kool ade that
works against their own best interests.
> Though personally, I would be comfortable with a certain amount of
> regressivity if it came with a drastic simplification of the tax code.
Funny how conservatives rail against communism yet see nothing
communistic in the concept of a one-size-fits-all flat tax. Why is
that?
> >Sure, pay 10% on a million and you've got $900,000 left over. Pay
> > that same 10% on the $43k a year you're trying to live on and you've
> > got $38,700 left. Frank somehow sees that as being "fair."
>
> I'd call it "fair" by definition.
"And THAT is why you fail." - Yoda
> > What about it has anything to do with being anything other than
> > another ignorant talking point put out by conservatives like you who
> > believe the rest of the country doesn't get it?
>
> Of course, anyone who disagrees with you is ignorant, irrational and
> uncompassionate. Have you considered cloning yourself?
If you read what I actually wrote, I called the talking point
ignorant, not the people like you who throw around the talking point.
I've never said you are ignorant. Far from it. You're smart enough to
have convinced yourself that black is white and up is down when it
comes to economics.