Paul Begala just said the income tax is a rich persons tax.

[dkf]

Funny I was paying it from my first summer job.

[aquart]

1. No, it is a citizen's tax.

[The Magistrate]

2. In Its History It Is, Ma'am

Originally, the income threshold was set well above the earnings of most people.

A situation where many working people hav no liability for the tax is simply a return to its roots/

[dkf]

3. Yet it depends on your exemptions more than your earnings.

[The Magistrate]

9. Not So, Ma'am

The principle reason working people end up with no liability for the tax is the earned income credit, which is directly tied to earnings level. That so large a portion of the working populace qualifies for this is another, and quite disgraceful matter, of course. The only other deductions, besides the standard deduction given each filer, which makes much difference en masse, is that for dependents.

[dkf]

10. Exemptions, dependents, credits whatever.

It's all the same to me.

[The Magistrate]

12. Obviously, Ma'am, Much Of the Subject is Greek To You

But the distinctions do matter.

The system is deliberately set up to exempt persons employed at poor pay from liability for income tax, particularly if they have children. It is a sound policy. It is in effect a federal subsidy to businesses who pay low wages, as employers paying such poor wages would have a harder time securing willing employees otherwise....

[salin]

14. I seemed to have missed this - in the mid 90s I was in grad school and earning

12k - in one of the most expensive cost of living areas in the country at the time. I paid income taxes. I also ate lots of ramen noodles and barely scraped by. I wasn't married and didn't have a child, or a mortgage - is this the difference? I only ask because I spent a lot of years at the lowest rung of the income ladder - and still paid income taxes. Either laws have changed since I started earning more income - such that had I been earning the same a decade later (mid 00s) or my life experience has been very different than the examples given. I am not a dumb lady, but I am missing something in this conversation and am stuck in cognitive dissonance per my experience as a low wage earner - and the numbers tossed out today.

I hate cognitive dissonance - would love to have information that both makes sense, and reconciles my taxation history when living at/near the poverty level - and paying income taxes.

[The Magistrate]

15. Single And Childless, Ma'am? Yes, You Would Pay Something

Earned Income Credit applies only to filers who can claim dependents, and the child dependent deduction, being a fixed amount, reduces taxable income greatly at lower wage levels.

Further, rates have been dropped at lower levels since 2001, and the basic threshold for liability raised.

[salin]

24. thanks

that makes sense.

[dkf]

19. They are all the same to me since I get none of them.

[The Magistrate]

20. You, Ma'am, Are Not the Focus Of National Tax Policy

It may come as a shock to you, but there it is.

[trotsky]

22. Always a treat to watch you in action, sir. n/t

[tsuki]

8. Why can't people understand that? It was called progressive for a reason. nt

[ej510]

4. Paul Begala is a DLC/New Democrat/Third Way Democrat.

Wall Street whore!

[applegrove]

5. It was brought in in Canada during WWI to make sure all participated

paying taxes.

[unkachuck]

6. "...the income tax is a rich persons tax."

....and he's supposedly one of ours?

"Funny I was paying it from my first summer job."....me too....

....it's amazing how much money we've wasted over the years paying a 'rich persons tax'....

....hey Grandma, did you we were rich?

[nadinbrzezinski]

7. I guess I was rich when I was flipping burgers and frying

fries.

[CreekDog]

11. i always hear you complain about taxes

never once about child hunger or poverty.

priorities.

[dkf]

16. Funny...aren't I the biggest cheerleader for getting rid of the Bush tax cuts?

Kind of thought I was.

[Creideiki]

13. Wealth, Ma'am, is also a rich man's burden

Wow. That does sound condescending. Even when I agree.

I apologize and promise to never attempt to be condescending toward you again. I'll save it for douchebags who deserve it.

[dkf]

17. Lol.

Yeah that used to get my goat but now I'm used to it.

[LatteLibertine]

18. Dub-yah said it best

in essence, that real rich people don't pay taxes, they dodge them.

In addition, most wealthy people make their money from capital gains, which is taxed at 15%.

Homie, should look into how the wealthy hide their assets in other nations as well. There are some sweet tricks outlined in the below article.

http://www.bloomberg.com/news/2010-10-21/google-2-4-rate-shows-how-60-billion-u-s-revenue-lost-to-tax-loopholes.html

Also have a look at the shell (shelf) corporations we have right in Wyoming.

http://www.reuters.com/article/2011/06/28/us-usa-shell-companies-idUSTRE75R20Z20110628

[badtoworse]

21. So was I, but unfortunately, Begala is correct.

A very high percentage of federal income tax is paid by high income people. I believe everyone should pay income tax even if the amount is nominal. Flame away if you want, but everyone should have skin in the game.

Don't bother telling me about payroll taxes, gasoline taxes or any other special purpose taxes. They don't fund government operations; income taxes do that. If you are not paying for the government to operate, why should you care what it costs? Everyone should be concerned with that.

[girl gone mad]

23. Taxes don't fund government operations.

It's unfortunate that their function is disguised as revenue, but they are not needed for that purpose at the federal level.