What Do You Mean I Can't!

[rextorres]

Umm . . . I'm not going to explain why your overtime was taxed at a higher rate.

The important thing, though, is when you sent in your tax return. On line 22 of the 1040 is your total gross income regardless of how you got it. Your tax rate is based on this income minus deductions which is line 39. On the EZ it would be line 4 and 6.

You may have have had money deducted at a higher rate throughout the year but the tax rate on your tax form is what you should be looking at. Not what was deducted from your pay check.

Anyway that's the whole point of filing tax returns. What's deducted from a paycheck is not necessarily what we should be paying in taxes.

[ April 27, 2004, 19:44: Message edited by: rextorres ]

[Krsqk]

Originally posted by rextorres:
Anyway that's the whole point of filing tax returns. What's deducted from a paycheck is not necessarily what we should be paying in taxes.

Which is a valid argument for returning to the pre-WWII state of "pay lump sum at the end of the year" method:
1) You understand exactly how much you're paying.
2) Taxes have to drop dramatically due to popular demand.
Unforunately, in today's culture:
1) People would not save money for their tax bill--gotta keep up with the neighbors, dontcha?
2) People would complain about the lack of government services due to decreased tax income.

Quote from Fyron's tax history link:

Reductions in exemption levels meant that taxpayers with taxable incomes of only $500 faced a bottom tax rate of 23 percent, while taxpayers with incomes over $1 million faced a top rate of 94 percent. These tax changes increased federal receipts from $8.7 billion in 1941 to $45.2 billion in 1945. Even with an economy stimulated by war-time production, federal taxes as a share of GDP grew from 7.6 percent in 1941 to 20.4 percent in 1945. Beyond the rates and revenues, however, another aspect about the income tax that changed was the increase in the number of income taxpayers from 4 million in 1939 to 43 million in 1945.

Now that's insane. Let's not give any incentive to improve your life or anything. 94%?!?!? That's not even including any state or local taxes.

[Atrocities]

never mind

[ April 28, 2004, 05:43: Message edited by: Atrocities ]

[rextorres]

Nevermind.

[ April 28, 2004, 07:04: Message edited by: rextorres ]

[Atrocities]

If I anger you, you take the internet too seriously.

[ April 28, 2004, 05:51: Message edited by: Atrocities ]

[Wardad]

I haven't look at the US numbers this year so I'll stick with hypothetical examples:

10% tax on first 20,000
15% tax on next 20,000
20% on next 20,000


So on 40K, the tax rate averages out to 12.5%
Work a lot of overtime and make 60K, average tax 15%

This is just hypothetical, the actual tax rate and break points are different.

[Wardad]

Isn't this amazing?


TAXES


Accounts Receivable Tax

Building Permit Tax

Capital Gains Tax

CDL license Tax

Cigarette Tax

Corporate Income Tax

Court Fines
(indirect taxes)

Dog License Tax

Federal Income Tax

Federal Unemployment Tax
(FUTA)

Fishing License Tax

Food License Tax

Fuel permit tax

Gasoline Tax
(42 cents per gallon)

Hunting License Tax

Inheritance Tax Interest expense
(tax on the money)

Inventory tax IRS Interest Charges
(tax on top of tax)

IRS Penalties
(tax on top of tax)

Liquor Tax

Local Income Tax

Luxury Taxes

Marriage License Tax

Medicare Tax

Property Tax

Real Estate Tax

Septic Permit Tax

Service Charge Taxes

Social Security Tax

Road Usage Taxes
(Truckers)
!
Sales Taxes

Recreational Vehicle Tax

Road Toll Booth Taxes

School Tax

State Income Tax

State Unemployment Tax
(SUTA)

Telephone federal excise tax

Telephone federal universal service fee tax

Telephone federal, state and
local surcharge taxes

Telephone minimum usage surcharge tax

Telephone recurring and non-recurring charges tax

Telephone state and local tax

Telephone usage charge tax

Toll Bridge Taxes

Toll Tunnel Taxes

Traffic Fines
(indirect taxation)

Trailer registration tax

Utility Taxes

Vehicle License Registration Tax

Vehicle Sales Tax

Watercraft registration Tax

Well Permit Tax

Workers Compensation Tax

COMMENTS:
Not one of these taxes existed 100 years ago and our nation was the most prosperous in the world, had absolutely no national debt, had the largest middle class in the world and Mom stayed home to raise the kids.

What happened???

[Renegade 13]

Originally posted by Wardad:
COMMENTS:
Not one of these taxes existed 100 years ago and our nation was the most prosperous in the world, had absolutely no national debt, had the largest middle class in the world and Mom stayed home to raise the kids.

What happened???

Two World Wars happened, and lots of other, smaller wars.

[Atrocities]

I am still angered over the fact that I could not claim the population of my empire as dependents.

[Atrocities]

Once again I am refused!

I am told that I cannot declare my 95.5 Billion Klingon subjects on my tax return?"

I can't even right off the cost of research, colonization, ship construction or declare the ships I lost in the Cardassian wars!

What kind of nonsense is this?

I spent 6 hours on this 1040 ez form. EZ my ***.

I want to speak to a Klingon Translator immediately! Warriors should not have to fill out these things! Just give me money!