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You should do what the government wants you to do: marry, buy a house, open and IRA. Then you'd pay less tax. You can't complain about paying more taxes when you don't do what the government wants.
A family of 4 with household income in the exact middle of the middle class income spectrum pays an average effective federal tax rate of 5.3%.
Many of the 2016 candidates are proposing major revisions to the tax code. Of course a President has no authority to change the tax code. It will require an act of Congress to do so.
Best I can tell, all the pitches continue to favor families with children and preservation of the mortgage interest tax deduction. All result in substantially less revenue for the federal government which means less money to redistribute to the states. This means states will have to cut services and increase state taxes and fees. This means municipalities will need to raise property taxes to maintain schools and municipal services.
At the end of the day the overall tax burden could remain the same or incrementally increase.
I may be the only licensed broker in the US that does not favor the mortgage interest tax deduction.
I am not too keen on tax breaks for children either as it encourages irresponsible procreation.
All the presidential candidates ever pander to is Middle-Class families. Supposedly they're the ones who deserve tax breaks.
Well, I'm single, unmarried, no kids, and rent an apartment. Where's my tax break? Why can't I deduct my rent from my income? When are Middle-Class families going to pay back the subsidies I've been giving them through the Earned Income Tax Credit?
Are you under the impression that homeowners can deduct the entire amount of their mortgage from their taxes? They can only deduct the interest. Whoever holds the mortgage on the building you live in gets to deduct the interest. You have the same opportunity as everyone else to have a mortgage and deduct the interest.
And what about homeowners with no mortgage? Should they be able to deduct some random amount just because?
$30,00 in NYC is not much but, in say Alabama and you are doing OK.
The COL disparity across the country is enormous.
This is what a lot of people from high COL areas don't understand (there's a corollary to that in reverse). A $15-$20/hour wage is top rate for many trades throughout the US.
The corollary is that people with high pay in a low COL area look at pay for comparable jobs in high COL places and don't realize that they'd actually be worse off there.
Based on studies, the middle class is shrinking and it's not because they are stepping up a level, but slowly declining into poverty or just above the poverty level.
For every 1 baby born to self-supporting parents,3 babies are born to those dependent on public assistance.
Women receiving public assistance, as a group, have a birth rate 3 times higher than women who don't receive public assistance. That, in itself has led to the additional problem of nearly half of all U.S. births being paid for by Medicaid. 70% of those kids will never rise out of poverty, even as adults.
This is what is increasing the percentage of those who make less than $30,000 a year. An exponential amount of population growth is occurring at the bottom.
BTW, Medicaid and Public Health Departments cover birth control for the poor so there's NO excuse for these statistics.
Quote:
The middle class has been the only "class" that has been paying their "fair" share in taxes.
Based on what?
Look at the total local, state, and federal combined effective tax rates, by income group...
I have to believe you will NOT be voting for any candidate who is part of the 'Washington establishment' then. You and millions of people like you need to make your voices heard in the elections. The current group of politicians running congress (and in the White House) are NOT your friends.
Those 2016 candidates pitching a rewrite of the tax code continue to include the sacred cows, child tax credit and mortgage interest rate deduction.
Singles, without children who rent will continue to pay a higher effective tax rate.
I have two kids and will get a nice break this year. Personal anecdote aside, it is smart policy for the government to encourage marriage and children. Children are our future workforce, and research continually shows that the best thing for a child is to be raised in a traditional two-parent home (mother and father). When that child grows older, he is a member of the workforce and pays Social Security taxes, Medicare taxes, and becomes a productive member of society. Government encourages many things via taxation (not all I agree with, mind you), but this is one area where families with children get a good break, and deservedly so. If we become top-heavy like Germany or other Western European countries, we get a lot of retirees but not enough workers to replace/sustain them and have to rely on immigration. Not the path I want to go down.
I have two kids and will get a nice break this year. Personal anecdote aside, it is smart policy for the government to encourage marriage and children. Children are our future workforce, and research continually shows that the best thing for a child is to be raised in a traditional two-parent home (mother and father). When that child grows older, he is a member of the workforce and pays Social Security taxes, Medicare taxes, and becomes a productive member of society. Government encourages many things via taxation (not all I agree with, mind you), but this is one area where families with children get a good break, and deservedly so. If we become top-heavy like Germany or other Western European countries, we get a lot of retirees but not enough workers to replace/sustain them and have to rely on immigration. Not the path I want to go down.
You're missing the point of the consequences of all the tax credits and public assistance for irresponsible breeders. Go back and read my post.
Do you seriously think the perpetual poverty and therefore already receiving public assistance class is going to pay enough taxes to support SS and Medicare? Explain the math on how that will work.
All the presidential candidates ever pander to is Middle-Class families. Supposedly they're the ones who deserve tax breaks.
Well, I'm single, unmarried, no kids, and rent an apartment. Where's my tax break? Why can't I deduct my rent from my income? When are Middle-Class families going to pay back the subsidies I've been giving them through the Earned Income Tax Credit?
You deserve whatever tax break is written into the tax code that has been guarded by democrat charklie rangel for decades.
'Fair' is a word used by charlatans and fools.
The tax code is a leagl issue, using emotonal words to fight legal language is just a ploy to gain sympathy and nothing else.
Society rewards those who create stability. Society need stability. Theoretically and practically, partnerships are favored over singles. figure signles don't need help as they don't have to spend their life fortune on education, medical care, etc for potential children. you spend your money on yourself.
Society sees marriage as necessary to social stability. A concept that has been lost and you can see the results.
I have proposed a simplification of the Federal Income Tax that would greatly benefit the middle and working class.
Replace ALL of the existing Income Tax code with its myriad of exemptions and deductions with a code based on:
All Income from all sources legal or illegal with one deduction equal to the 90th percentile of all taxable income. As businesses are considered individuals and most make far more than the 90th percentile they would be allowed to deduct the cost of business including dividends but not executive salaries above the 90th percentile from their revenues. They would then pay the taxes on any retained income above the individual 90th percentile. the tax rates on the top 10th percentile would be set on a sliding scale so the 99th percentile paid at 10 times the rate of the 91th percentile.
This would place the burden of operation the Federal government on the people that benefit most from the Federal government.
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