Income Taxes Help - Do you believe the lies about who pays the taxes in our country?

Do you believe the lies about who pays the taxes in our country?

I posted this question a few days ago, and got some really absurd answers. I hope to get some replies from people who at least read the question, and people that know what filingg as a corporation or partnership means vs filing as an individual. This article: ttp://www.taxfoundation.org/news/show/250.html has been quoted to death, especially this line: "The top 1 percent of taxpayers (AGI over $388,806) earned approximately 22.1 percent of the nation's income (as defined by AGI), yet paid 39.9 percent of all federal income taxes." The problem with the quote is best described as lying with statistics, which is easy since most of us don't have a clue about numbers. The problem with the quote is that the article clearly states "individual tax filers", as if those returns represent the highest income. They don't. The highest income earners file many tax returns on various corporations, LLC's, partnershipts, and trusts that they control. For example, a local billionaire owner of car dealerships Ernie Boch Jr, in Massachusetts says "The only thing I own, in my own name, is a 1972 MG". So, his personal tax return is a tiny fraction of his total wealth. People like Rush Limbaugh drum these mis-quotes to death also, whining about how much "the rich" pay in taxes. He then goes on to quote half truths from articles like the above. The truth is that the wealthiest %1 are not represented in the above article. Only the top %1 of INDIVIDUAL filers. Most of those people are in the 200k to 400k range. Looking at incomes of people like Treasury Secretary Paulson, who made about 400 million dollars over the past 8 years or so, 200k to 400k is not anywhere near "rich". OK so what is the point? Fair tax. The real top %1 wealthiest people in our country don't pay taxes. The top %10 of INDIVIDUAL tax filers get screwed out of paying what they don't pay. That is completely unfair, and unconstitutional. And it certainly helps creat tax cheats, doesn't it? Who wants to pay %40 to %50 in real taxes, while people making 10 or 100 or 1000 times what they make, pay nothing? Anyone else notice the nonsense? ttp://www.taxfoundation.org/news/show/250.html The above links were broken. http://www.taxfoundation.org/news/show/250.html LiberalAssKicker: define "wealthy". I make 200.00 a year. Am I wealthy? Sorry, 200,000.00 a year. You can't understand the question unless you read it. I guess most posters here don't read very well. "Raising taxes on the rich doesn't save the rest of us any money." I Never said to "raise" taxes on anyone. What I want is FAIR taxes, which we don't have by any means. Why should I pay %40 of my 200,000.00 a year, when someone who makes billions pays %15 because they take a small wage mostly from capital gains, and the rest of their assetts are owned in partnerships or corporations? bMovies: but you won't see any of it. You'll pay so much in taxes, you will be little better off than people with much smaller wages but have places to hide income. Thanks for the link to TruthAttack. Im reading it now. I don't want to raise taxes on anyone, I want everyone to pay the same fraction of their income, wherever it comes from. that is fair, no? Rthimble: Re "I'm sick of supporting entitlement programs while others are taking 4 or 5 vacations a year because they have no tax liability. It also ticks me off to go to the store and see some women with her link card(food stamps in Illinois) buying the best cuts of meat, etc. it is just rubbing it in the face of taxpaying Americans." I hear you. I know people that hide money in partnerships owned by LLC's owned by partnerships. They ride in new corvettes, and take 5 vacations a year just like you've said. They don't contribute one bit to this country, but take a lot out. Why can't we all get the same benefit? HotCocoa "The more money one has contributes down the line to more taxes brought in to the government. You will see this when the government comes up short because of a cut back in the rich persons income." No, you're wrong, dead wrong. Look at the data again. The very top income people those that make all of their money through LLC's and partnerships and corporations, not the individual tax filer, they all get away with murder on taxes. And we, the middle class pay for it. The rich don't pay taxes, its the middle class. We're getting strangled to death. But they get handouts. "You will see this when the government comes up short because of a cut back in the rich persons income." Wrong! You'll see somethign when the government ends up short because the middle class, that pay ALL of the taxes are getting strangled. Look at the data!!! Ingrid has it right: "The Majority of Taxes (Dollars collected) comes from us the little People."

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I work for a CPA firm as a tax accountant. The wealthy pay the most. It's not a lie. Your interpretation of LLC's, S-corps, partnerships and sole proprietors is completely false. Income from all of these businesses pass DIRECTLY to your 1040 to the line that says, "business income", and you pay both income tax AND self-employment tax on it from your own personal bank account. There is not a single LLC, S-corp, Partnership or sole proprietorship that pays taxes. The owners pay as private individuals, and the forms (1065 and 1120-S) are for information purposes only. Maybe you should learn something about taxes before you try to explain them. **************** Learn taxes before you try to tackle something as abstract and debatable as "define wealthy". The Small Business Administration defines "wealthy" (in a round-about manner) as any business with more than $50 million in assets or more than $6 million in annual sales. The federal government defines "wealthy" (in a round-about manner) as any estate worth more than $2 million. Notice that Barack Obama has LOWERED the definition to something in the low 6 figures and the complete morons on the left bought it hook, line and sinker.
The Majority of Taxes (Dollars collected) comes from us the little People.
I saw it, they were not so absurd as you are totally clueless, sorry. You look to include the very rich who are predominantly democrats, in with the earners. It's income tax, not whatchugotindabank tax, you are using false criteria and trying to make it all add up ... or someone else did. You also miss the fact that corporations are not people, but they get taxed like people. All very large corps are strait corporations, LLC doesn't work for them. The corporations get taxed once, then all the investors also get taxed on the increase. I have to say though, I do favor the fair tax, but listening to Ron Paul is a big mistake, he is an idiot and he misleads purposely, saying what gets him some support so he can make some money from it.
The people with the most money also own the most companies. The rest of us absorb their tax burden through the things we buy. Raising taxes on the rich doesn't save the rest of us any money.
You have a problem of both envy and not able to look at big picture. The more money one has contributes down the line to more taxes brought in to the government. You will see this when the government comes up short because of a cut back in the rich persons income.
"200,000.00 a year" You're making WAY MORE than me. From my vantage point, 200 thousand IS wealthy. I would LOVE to be earning that much! Heck, I know lots of people who would love to be earning 25 percent of 200 grand! (what do you do for a living, if you dont mind answering) EDIT: Okay then, I would love to be earning 400 thousand a year....that way AFTER taxes, that will give me at least 200 thousand to play with :-)
The bigger lie is that the working poor don't pay any income taxes. I earned $4.25/hr working my way through college and income taxes were withheld out of every paycheck. My annual tax refund from Uncle Sam was a fraction of the income taxes that were jacked out of my paycheck every 2 weeks.
Will encouraging class warfare ever result in your life being 1 minute longer, or 1 dollar richer? For the real question take the red pill and check out http://www.truthattack.org/jml/index.php
I agree with you totally ! I know a couple of businesses very well, small owned by couples. They pay virtually nothing in taxes and hide all there personnel expenses in the business one way or the other. they are making mega bucks and paying nothing. I'm not saying all small business owners operate this way but there are a lot that do. I would fall into the middle class I think depending where that is now, I know we pay in the 30% range. It is really annoying that we work for everything and get no breaks on taxes, I don't mind paying my share don't get me wrong. I'm sick of supporting entitlement programs while others are taking 4 or 5 vacations a year because they have no tax liability. It also ticks me off to go to the store and see some women with her link card(food stamps in Illinois) buying the best cuts of meat, etc. it is just rubbing it in the face of taxpaying Americans. Snooblin you can be a corporation with just a handful of people. As few as two, many do that to decrease liabability if they are sued etc. bmovies we come close to that as well with just my husbands oncome but you have to realize that he is 69 years old worked for one company 35 years , took the golden handshake and went to another company the next day. He is considered an expert in his field, and has worked a long time to get there. He is an electrical engineer who speciaizes in trouble shooting switchgear with power stystems like generators that are used to back up airports,NASA, hospitals etc.
Thye have used Tax paying Dollars for their own Benefit in Instead paying for Government Programs.
warren buffet says he pays 15 percent... which is less than his secretary... and less than I pay... so... I think it's fairly clear who pays what... but some who make around 200k to 400k may be getting a bit of the shaft... but they still aren't in the poor house...