In summary, for tax year 2009, approximately 22 percent of all tax units, including filers and non filers, will have zero tax liability, approximately 30 percent will receive a refundable credit, and approximately 49 percent will have a positive income tax liability.For those of you that don't talk tax-speak, a "positive income tax liability" means you pay income tax. Doing some quick cipherin' shows that at least 51% of all "tax units" DON'T pay any income tax.
Ain't that special? For me, that means I'm now a minority. Somehow, I don't think that's going to win me any special consideration from Uncle Sam. Quite the contrary.
I foolishly pay income tax. More than half of my fellow citizens have shown superior intellect and cunning, and have constructed a lifestyle that allows them to not be taxed on their income.
Many - those 30% of my fellow citizens that figured out the, "refundable credit" scam - are actually able to make money off the system. Yep, they work, but somehow acquire these credits that allow them to get back more money than has been deducted from their pay.
You get paid money for literally doing nothing. Well, you do have to fill out the paperwork.
Genius.
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When the people find that they can vote themselves money, that will herald the end of the republic.We're there. Have been, for two years.
--Benjamin Franklin
Let all of that sink in: Less than half of the "tax units" in this country actually pay any tax. Each of us that pay taxes also pays the tax burden of the family next door or down the street or around the corner.
Absolutely astounding.
Unless you're making plans now, if you're currently paying taxes, the "bite" is only going to get worse.
"Who should we tax? The rich! When should we tax them? Now!"This chant was shouted today at a rally of teachers and students in Sacramento. YOU are the rich. You get that, right?
Those 51% of tax units that aren't taxed want your money to maintain their lifestyle. They are entitled to your money.
Here in California, they are only four legislators away from being able to do pretty much what they want with our money.
CTA hopes to persuade at least two Republicans in each chamber to support the five-year extensions that Gov. Jerry Brown is seeking to income, sales and vehicle taxes. That's the bare minimum of GOP support needed to reach the two-thirds constitutional threshold to approve a tax bill, assuming that all Democrats support it.
"One of our messages (to Republicans) is that we'll be there for them" when their re-election rolls around, Old said Monday before heading into the Capitol to lobby.
The message? Vote our way, and we'll keep you in office.
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Clearly, these protests won't end here. We already saw them in Wisconsin and a couple of other states. It's going to grow here in California, and the cancer will continue to spread across the country.
They'll trot out all the victims. We're going to see the poor, deserving minorities. The poor, deserving disabled. The poor, deserving illegal aliens. The poor, deserving children. The poor, deserving [fill in the blank].
From their perspective, it makes total sense. Someone (the rich tax payer) is trying to take food out of their mouths and money from their pockets, and they're pushing back.
Accept The Challenge
If you look up the definition of 'wealth' you'll see it has to do with being rich. Personally, I think of wealth as money or possessions that I've saved, acquired or increased. Putting some money away for a rainy day.
It seems like now, you're considered wealthy - a negative image - if you have anything more than that which you need to make it through next month. As we've discussed before, you are rewarded with government largess if you've purposefully NOT saved money for the future. Poor, poor, poor. Take, take, take.
It doesn't matter if you spent your money on drugs, whores, boats, vacations or gambling. If you pissed your money away, it means you have a certifiable illness, and are thus eligible for Nanny Bucks.
If you can't get a job because you have no education or experience, you get Nanny Bucks. No matter that while the 49% of the tax units were attending college or a trade school gaining experience, you were out partying and impregnating/getting impregnated.
You're now a victim, and need to be compensated.
For goodness sake, hide any semblance of wealth you've got. Flashy cars, "bling", wads-o-cash, etc. Don't make yourself a target.
Make that wealth inaccessible to others. That means keeping as little as possible in banks. Sorry, but thems are the facts.
Diversify. Assume the PTB will find at least some of your wealth and take it, so don't keep all of your wealth in one place.
Get moving on those, "multiple streams of income". If you can make them 'black market' - off the books like Craigslist, want ads, etc. - good for you. Just remember that Nanny at the state and federal level is becoming all the more diligent in collecting its pound of flesh.
Get started, NOW!
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4 comments:
"More than half of my fellow citizens have shown superior intellect and cunning, and have constructed a lifestyle that allows them to not be taxed on their income."
I'm sorry Chief, but this is untrue. Your own quote gives the data: "approximately 22 percent of all tax units, including filers and non filers, will have zero tax liability"
These are the people who don't pay income tax.
"Many - those 30% of my fellow citizens that figured out the, "refundable credit" scam - are actually able to make money off the system. Yep, they work, but somehow acquire these credits that allow them to get back more money than has been deducted from their pay."
This is also untrue. A refundable credit is simply money paid back to "tax units" at the end of the year who **have paid more tax than they should have.** The government says, basically, sorry, we deducted too much from your pay every week than you owe us, here is some of it back. Its far from a scam, its just a very poor method by which to manage your money (you are giving the gov't an interest free short term loan).
The 49% who have a positive income tax liability are simply those that had to cut the gov't a check at the end of the year because they decided to keep their more of their money week to week, instead of loaning it to the government.
And here again we see someone who does not understand the much touted EITC... as one friend (debateable) of mine claims, he pays in every year.
So I ask, 'How much EITC did you get back on top of your average refund?'
They just don't see that, since they get an expanded refund, they really aren't paying in any taxes. Just boggles the mind how some people's children can be so dense. Or blind.
Then he has the audacity to complain because he has to pay more for his Section 8 housing unit because fuel and electric prices rose.
(shaking head in despair)
Shy III
WV: 'inquatic', which is what I'll be Saturday on the fishing opener.
Hey Anon 5/10/11 @ 1:30 pm, you're wrong.
A "Refundable Credit" as opposed to a "Non-refundable Credit", is a tax credit that is not limited by the amount of an individual's tax liability. Typically a tax credit only reduces an individual's tax liability to zero. Refundable credits go beyond this and so really can be considered the same as a PAYMENT. In other words, you'll still get the credit even if you don't owe any tax. The earned income credit is an example of a refundable credit.
So between the zero tax liability folks and the refundable credit crowd, you have 52% of the tax filers paying no income tax or actually receiving money from the government which they never paid in the first place.
Anon, as Shy and kaptn have noted, the credit is received in excess of their tax payment - if any was made. I had anticipated such a comment, and that's why I provided a link over the words "refundable credit" to provide the definition.
Both statements are correct. If you disagree, please contact the Congress of the US to take up your issues.
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