Taxing Thoughts

Thursday, April 15, 2010

I don't mind paying a reasonable amount of taxes.

Obviously, I don't want to give away my money, but I appreciate roads, water treatment systems, public schools, libraries, knowing the department of defense has my back, and all the other wonderful things that go along with being an American citizen.

I understand that these things cost money.

This headline caught my eye - Nearly Half of US Households Escape Fed Income Tax

According to the article, about 47% will pay no federal income taxes for 2009.

I'm sure it makes sense to limit the taxation of the poor. But half the population?

The article also said "The bottom 40 percent, on average, make a profit from the federal income tax, meaning they get more money in tax credits than they would otherwise owe in taxes. For those people, the government sends them a payment."

Making a profit from taxes seems wrong to me. Really wrong.

I'm not sure how we should calculate a fair share when it comes to taxes, but I think it's pretty fair to say we're not there yet.
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“Elections should be held on April 16th- the day after we pay our income taxes. That is one of the few things that might discourage politicians from being big spenders.” - Thomas Sowell

13 comments:

5 Kids With Disabilities April 15, 2010 at 4:26 AM  

I completely agree!! I understand that many rich people have tax shelters and other ways to limit their taxes, which seems to be very unfair. Why should we support the country? They definitely should do their share the same, if not more, than us!!!! The fact is, they wouldn't even MISS the money, whereas for us it is a major debt.
Lindsey Petersen

Jeanie April 15, 2010 at 5:37 AM  

The problem is that those who don't pay taxes but have their hand held out to the government are also voters. I agree that there needs to be a shake up. Maybe that April 16th election day would get more taxpayers to the polls,

JP April 15, 2010 at 5:50 AM  

Yeah the theory is if you give people money, mostly in the form of tax credits, they'll spend it and prop up the economy...

The problem is... most people who receive it will use it to either pay off existing debt or save it for some future thing...

Our refund is about $1900 this year...

mama-face April 15, 2010 at 6:06 AM  

Several years ago we had a neighbor with 10 children who paid $0 in taxes. (well at least at tax time).

This is a tough post for me since I just wrote out several checks last night. gah. And then there's the fact that almost 1/2 of our paycheck is gone before it's even deposited. Sigh. It could be worse I know.

just making my way April 15, 2010 at 6:57 AM  

That quote is brilliant. Taxes suck. Yeah, okay, necessary...but still.

Me April 15, 2010 at 7:13 AM  

I never thought about it this way.

I'll have to admit to being one of those whose refund exceeds the amount paid in. Part of it is that we have three children so we automatically get $3000 there. Then there are all the other credits/adjustments the tax software finds for me that add up. Not that we always get this much back but I know our federal income tax didn't quite reach $3000 this year...

We don't make a LOT of money, not by any means. We do, however, make enough money to pay our bills and feed & clothe our children without any government assistance (Woohoo! I know, this shouldn't be something to brag about but I know too many who abuse government programs.)

Yes, the people who make less tend to need more assistance, but if you're already getting the max for food stamps, for housing, for daycare assistance, WHY should you be rewarded with a huge tax return? One of my friends gets assistance in all areas and is rewarded for all of this by a huge "tax" return that is NOT used for expenses. It is used exclusively for trips and fun.

And I KNOW I said above that ours ends up being a gain but that is unintentional, I promise. And tho we use part of it for fun (because having NO fun is ridiculous) the majority of it goes toward any debt we may have.

Hmmm. I must go examine my thoughts on this more. I know right now I feel my case with this happening is more okay than my friend's case but is that fair? I don't know. Ultimately, however, my goal is to make enough money to have to PAY IN at the end of tax season. Or cut even. That'd be even better. (I'm not money-hungry, I'd just like to be able to afford everything I'd like to have for my children. All the little extras that aren't necessary but that can enrich their lives.)

That corgi :) April 15, 2010 at 8:18 AM  

have to agree with you that we aren't there yet with figuring out a fair share to pay for taxes. I am with you; I don't mind paying taxes and I do reap a lot of the benefits of taxes (roads, police, fire departments, etc). We by the grace of God make a pretty good income and have a lot taken out for taxes and I am okay with that. What I don't like is when we have the taxes done and find out that in addition to the money taken out, we owe more taxes. (I claim zero exemptions at a single rate and hubby does - I think - married with one exemption). I think we should be able to claim ourselves as exemptions, pay the taxes that are taken out of our paychecks, and call it a day, no more money owed. Or a percentage that everyone pays and that's it. No refunds, no tax credits, etc. We are getting a refund this year only because we could claim our 21 y/o son since he didn't work last year (much) and we are supporting him.

It is a weighty thing to think about this Thursday morning.......

betty

Mrs.Mayhem April 15, 2010 at 10:21 AM  

I hear you. It is maddening to think about all of the inconsistencies in taxes.

Our county has just raised the real estate tax AGAIN. The value of our house (as determined by the county) is at least $125k more than we could actually sell it for. (If I could get the amount the county thinks our house is worth, I would move tomorrow.)

Also, our county has personal property tax on vehicles, and the bills were DOUBLE what they were a year ago. Apparently, we have amazing cars that increase in value as they age. Right.

Feeling Just Right April 15, 2010 at 10:27 AM  

Making a profit out of taxes is sad. Some day there'll be equality. Till then- i guess it's just grin and bear.

LadyFi April 16, 2010 at 6:42 AM  

Taxes are difficult to understand.. well, at least, I find them tough.

Jeanne April 16, 2010 at 3:15 PM  

I like the tax-day-then-election-day idea.

Only half the people paying taxes, not so much.

NPR had a good article yesterday explaining why soaking the rich won't solve our deficit problems.

Green-Eyed Momster April 16, 2010 at 8:41 PM  

I love that quote at the end of your post. I think we should be able to vote on how much stuff NASA sends into space too. They seem to have an unlimited source of spending money.

Hugs!!

Fireblossom April 17, 2010 at 8:00 AM  

Did you know there is more than one Unbitten Tongue blog? And did you further know that I have had the wrong one on "follow" for weeks? Gawd. I am not the sharpest knife in the drawer, am I? The other one exists but never posts.

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