April 15th
For most people in this country, April 15th means a payday. For me and many other busines owners it means I have to write my check to Uncle Sam. Pay to the Order of United States Treasury. This isn't mean to be an anti-tax post. I owe the money, I know I owe the money, we all have to pay something into the pot and that's fine.
However, I think a big reason why there is such a divide about taxes in this country is because some individuals (not corporations) end up getting thousands back and somtimes much more than they pay in, and others end up writing a check for thousands. Here is my suggestion. Every single person in the country should have to write a check to the United States Treasury for some amount. Even if it's $50. If you get back your return of $1500 or $5000, you should have to turn around and write a percentage back.
Citizens are too used to getting, and not giving to the country. Maybe if everyone had to write that check, people would be more involved in where it's going. Maybe there would be more criticism of the government. Maybe we'd hold the defense department accountable for their spending. Maybe we would hold those responsible for spending all the money out of the social security trust fund. Maybe. Today, apathy is the new American Way, and it's eroding our nation. Too many don't have a dog in the fight, or they don't feel or know that they do. We need to change that.
As someone who gets back over
As someone who gets back over $3000 and pays nothing in all year long, I can attest to the wide disparity in tax obligations that our current tax laws create. I am a big fan of simplification and an even bigger fan of a flat rate VAT tax with a flat amount per person rebate to replace the income and any other general purpose taxes (estate, corporate, etc).
To thechampaignlife, since
To thechampaignlife, since you take advantage of the earned income credit (if that's what it called) (and I'd imagine most who qualify would) in the federal tax code, do you think it should be repealed? I doubt there'd be much of a backlash among the majority who feel taken advantage of in paying their fair share of federal income taxes.
By the way, this year we get a break: Apr. 18th for fed and IL.
At a minimum, it should
At a minimum, it should probably be based on total earnings and not taxable earnings. The way it is now, for every additional dollar someone puts into their employer's defined contribution plan they get an immediate 18% return via the EIC. If you put that money into an IRA after getting your paycheck, however, you don't get that same benefit. At a minimum the benefit should be the same between DC and IRA. And, unless getting poorer people to save for retirement is valued enough to eliminate or even create a negative tax for them, it probably should be modified or eliminated. I'm at the upper end of those that qualify for EIC, though, and we do a lot to make things work at that level of income so I can't speak for those in a different situation who might be scraping by doing as best as they can so I'm a little leery of recommending to eliminate the whole thing. Maybe just reduce the upper qualifying limit?
Golly, I'm not even following
Golly, I'm not even following what being in the "upper end of those that qualify" means. Those would be the more needy? I appreciate all the info. But looking at it in the most simplistic way, since apparently 50% of taxpayers end up owing nothing, a magnanimous gesture in my book, to then proceed and make it possible to somehow send money ($3000 you mentioned) BACK to a person is, well, at best, tooo magnanimous.
Regards,
The upper end means the least
The upper end means the least needy of those that qualify for the EIC. It phases out at a rate of 18% of each additional dollar you earn until somewhere in the mid-$30k range. You max out the credit around $22k, I think, depending on your family size and I think the max credit is around $6k, all of which is refundable if you end up owing no taxes. It's pretty easy to look up by using the table in the middle of the 1040a instructions and you can try some sample numbers with the 1040a form to see what the simplistic tax situation would be for a family of a certain size with a certain income. I agree that owing nothing AND still getting $3k back doesn't seem right as I could easily afford not getting that money and even paying some. Trying to convince Congress to increase taxes (or decreasing a negative tax) or others in my situation to be as reasonable in reducing their IRS refund as I am, however, would be no easy task I imagine.
I understand your point, but
I understand your point, but not the tax proposal you put forth.
Changing the tax code just can't be as simple as what you propose.
Everyone writes a check for "some amount".
Then you get back thousands? And then you pay back "some percentage"?
If it were only so simple.
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