Opinions Please

[TXmom]

The Bush Tax Cut, by Income Levels

Less than $13,600
Current tax 8.8%
Tax after Bush's cut 8.3%
Reduction in tax paid .5%

$13,600 to $24,400
Current tax 15.2%
Tax after Bush's cut 14.2%
Reduction in tax paid 1%

$24,400 to $39,300
Current tax 19.9%
Tax after Bush's cut 18.5%
Reduction in tax paid 1.5%

$39,300 to $64,900
Current tax 23.8%
Tax after Bush's cut 22%
Reduction in tax paid 1.7%

$64,900 to $130,000
Current tax 26.9%
Tax after Bush's cut 25.3%
Reduction in tax paid 1.7%

$130,000 to $319,000
Current tax 29.1%
Tax after Bush's cut 27.9%
Reduction in tax paid 1.2%

More than $319,000
Current tax 37.1%
Tax after Bush's cut 32.0%
Reduction in tax paid 5.0%

Also, did everyone get their tax refund? We got $600, but I heard some people didn't get anything and that some where only going to get $200. I thought everyone would get one.

[Linda/NE]

I skimmed the first part--so no comment on that--

As for the refund checks, we didn't get anything because we didn't have any taxable income last year. Not sure why some only got $200--were they single or no kids maybe?

[TXmom]

I'm not sure. I think it is based on the amount of tax you paid.

[Jeff]

I still think the people in the higher brackets are paying alot more taxes than those in the lower brackets no matter how you slice it.

[Lynda/WA]

I don't know anyone that didn't get the max. The reason some got less than 300 for singles or 600 for couples was if they didn't earn enough to pay that much in taxes anyways. I forget the exact figure but it was something like 8,000 in taxable income for a single. Basically, you can't get money back that you didn't pay in taxes in the first place. I'd think that some of the people in this group include people like farmers. Maybe had a bad year and showed no taxable income for last year. Just a bad year even though they work their butts off.

Other reasons included things like delinquent child support, student loans and taxes. Same concept as taking your tax refund in April if you owe certain payments. In those cases you could still have a higher income but are delinquent on payments. Then the money goes towards your payments so in a manner of speaking you are getting the money. Just not in your pocket.

As for the tax brackets. I've heard that 95% of all tax dollars are paid by the richest 5%. I can't remember the exact figure but something like the bottom 15% pay 0 dollars. If you look at the tax rates and not the rate of change you'll see that the top people pay about 4 times what the poorest do. Did you realize that the vast majority of millionaires are first generation millionaires? They earned the money themselves! It's not like we're only talking about the Kennedys and Rockefellers. Got that out of the book *The Millionaire Next Door*. Great book but it's on loan with my BIL so I can't give you the exact data. I'm currently skipping though the companion book *The Millionaire Mind*. Another great book (IMHO). I also wonder how many of those low incomes are high school kids earning some fun money? And add to that what percentage of tax dollars is spent on low income vs how much is spent on high income.

Did you know that we didn't even have an income tax for about the first 100 years? Income tax was declared unconstitutional in the beginning. I think it's an ammendment to the constitution now.

A while back there was a consumer advocate on the O-Reilly Factor. He said that about 60 cents of every dollar the average person earns goes to taxes. At first it blew me away and then I started thinking about it. Federal, State and Local taxes. Income tax. Social Security. Property tax. Sales tax. Fees for everything from any liscense to recylcing to streetlights. Users fees. Taxes on what you earn and taxes on what you spend. Companies increase product costs and lower wages to recoup the various taxes and fees they pay. So in effect you are paying the companies taxes as well. Both by what you AREN'T getting paid and by what you pay for goods and sevices. I couldn't think of a single thing that isn't taxed! Some states are taxing the tax rebates! California is looking into taxing satellites in outer space.

[netmechwife]

Great points Lynda/WA! I agree...
We haven't gotten ours back yet...

[MommyKya]

We'll be getting our check soon..only for $21, BUT that's all the taxes we paid for the whole year. Can't get back more than you put in! (darn ;) )

Amber

[Lynda/WA]

I was reminded of this thread yesterday. In one of those insert in the paper, someone asked how much Bill Gates was getting back in his tax rebate. The answer is 600 if he and Melinda filed jointly or 300 if he filed alone. DH and I had to laugh. Here a guy is that is probably paying a million dollars in taxes (just guessing!) and he gets back 600! The same as we did. I just looked at our return and we paid just over 10,000 in federal taxes. He paid an estimated 100 times what we did!

Of course he donated more than our TOTAL income to our local school alone!

[TXmom]

This was presented to me as unfairly favoring the rich. The reasoning was that the top income level got a 5% tax cut, while the bottom level got only got a 1/2 percent tax cut.

[Mickey]

I'm not clear on things...the reduction percentages do seem to favor the wealthier people.

But, then again, I always thought it was interesting that the actual tax rate may be a higher percent when you make more, but then you can afford to pay an accountant (and no, that's not the same as H&R Block) to find you all kinds of loop holes and deductions and cuts that some poor sap sitting at his kitchen table filling out at 1040EZ form would never know about. When I was younger and not earning a lot, I would calculate what I owe and pay it or wait for my piddly refund. But a huge tax debt can get reduced significantly after all the write-offs and deductions, etc. an accountant can come up with and I'd be willing to bet that after all the write-offs/deductions, etc., the percentage actually paid is significantly lower that what the initial tax rate appears to be...am I making any sense at all? LOL!

Also, I don't understand how Bill Gates is getting the same tax cut at Lynda/WA. Not clear on how that's working.

So, since I'm so confused, I guess I'll just say, "No comment!" ;) LOL!