Income Tax is fair?

[Ciscokid]

I agree! You have to have a ton of money to keep a small business going. When you hit certain tax brackets, you work twice as hard for half the money. This is money you need to expand and create additional jobs with that you give the federal government which squanders it promptly. :yes:

If anyone should get tax breaks it should be small biz owners. They are the backbone of our society.

 

[Twilight Hue]

Personally I would love to see a flat percentage rate.

 

[dust1n]

Personally I would love to see a flat percentage rate.

I say we go back to the post-WW2 tax rate of 90 percent to the top 1 percent of the tax bracket.

 

[Ciscokid]

I say we go back to the post-WW2 tax rate of 90 percent to the top 1 percent of the tax bracket.

So only the super rich pay taxes and they pay a ton?

 

[Magic Man]

Is it just me, or should folks who make 50K pay a little income tax too? Why are nearly only half of Americans paying income tax? I don't make enough to buy vacation homes and yachts so I don't have the tax shelters to protect my money.

I imagine that this isn't a 'left' or 'right' issue, is it agree overall that the income tax system is deserving of some tweaking?

Nearly half of US households escape fed income tax - Yahoo! Finance

Here's a video explaining it for you.

More than half of the people not paying federal income tax make less than $20,000/year. You shouldn't so much be concerned with the fact that people aren't paying taxes. You should be concerned with why they're not paying taxes. The fact is that the income inequality in the country is insane. If more people were making enough to live somewhat comfortably, a lot more people would be paying taxes.

 

[Magic Man]

When you hit certain tax brackets, you work twice as hard for half the money.

No, you don't. Tax brackets are progressive. Everyone pays 10% on the first $8,300 they make, 15% on the amount between $8,300 and $34,000, 25% on anything between $34,000 and $82,000, and so on. If you start making $83,000, you don't suddenly start paying 28% on everything you earned. You only pay 28% on that extra $1,000. You still pay the lesser percentages on everything up to that.

It's not like you go from making $34,000 and paying $5,100 to making $35,000 and paying $8,750. You would go from paying $4,650 to paying $4,900.