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Only insofar as Ellis Bell keeps posting incorrect info based on nothing but a seething rage for an accomplished entrepreneur who doesn't even earn a 6-figure salary.
In 2016, the bottom 50% of wage earners paid 3% of all income taxes collected, and the trend shows them paying even less as each year passes. By now, in 2020, it's very likely that MORE than 1/2 of all American wage earners pay NO federal income taxes. We now have more takers than makers.
But, even with this free pass, they still can't set aside $400. Sad.
What more can do to help them, to help themselves? Giving them a free pass on federal income tax clearly hasn't worked.
There's no single cause, and we can point blame all around, but in many circumstances (particularly in large urban areas), our education system failed them. In my opinion, poor inner city education is the leading cause of it. The parents (or lack thereof) of students in those schools share in the poor outcomes.
To fix it, we must change these 2 circumstances. We cannot allow the status quo to continue.
Quote:
By now, in 2020, it's very likely that MORE than 1/2 of all American wage earners pay NO federal income taxes. We now have more takers than makers.
"The Tax Cuts and Jobs Act (TCJA) became a done deal when President Donald Trump signed it into law on Dec. 22, 2017.
<snip>
So Who Benefited?
The Tax Policy Center indicated in 2018 that the TCJA would reduce taxes “on average” for all income groups, and the Tax Foundation said the same thing.
The key word here is “average.” Some taxpayers would fare a little worse while some would fare better. It's important to keep in mind that tax brackets and rates are percentages.
A taxpayer who earns $100,000 and sees a 4% reduction in his effective tax rate would realize a far greater dollars-and-cents increase—$4,000—in after-tax income than a low-income taxpayer earning only $10,000 a year and seeing the same 4% reduction of just $400. It's all relative." (my bold)
Amazon employees carry the tax burden the owner does not. Bezos if slapped with a $400.00 unexpected bill will not have the same problem as the employees of Amazon ...
Quote:
Originally Posted by InformedConsent
Only insofar as Ellis Bell keeps posting incorrect info based on nothing but a seething rage for an accomplished entrepreneur who doesn't even earn a 6-figure salary.
I'm still waiting for proof of my incorrect posts.
Income inequality will continue to rise. I bet if we cut taxes for millionaires and billionaires that should fix the problem.
Actually, their taxes increased due to Trump's new $10,000 cap on the SALT (State and Local Taxes) tax deduction. Prior to that, the SALT deduction amount was unlimited.
"A $1 million-plus wage earner came to her tax preparer last weekend to see what the Trump tax cuts, which went into effect for the 2018 tax year, would mean for her tax return due April 15. And boy, was she disappointed. Last year, she deducted $245,500 in real estate taxes, state income taxes and personal property taxes. This year her deduction for these state and local taxes was limited to just $10,000, because of the new SALT cap.
“It’s a real hit,” says her tax pro, Claudia Hill, an enrolled agent in Cupertino, California. “This is why people who have this kind of situation are screaming.”
...To fully benefit from the reduction in the top income tax rate, you’d have to live in a state with no state income tax, says tax lawyer Kaye Thomas, who figures that California’s highest earners are facing a federal effective rate that’s 2.7 percentage points higher in 2018 than 2017 because of the interaction between state and federal taxes."
See what happened there?
The SALT tax deduction she took on her US 1040 for...
2017: $245,500
2018: just $10,000
The $235,500 over $10,000 she could no longer deduct in 2018 and going forward was taxed at her marginal rate, likely at 37% which would be an extra $87,135 in federal income tax. That's NOT a tax cut; it's a tax INCREASE on the wealthy.
Actually, their taxes increased due to Trump's new $10,000 cap on the SALT (State and Local Taxes) tax deduction. Prior to that, the SALT deduction amount was unlimited.
For example, from the link:
See what happened there?
The SALT tax deduction she took on her US 1040 for...
2017: $245,500
2018: just $10,000
The $235,500 over $10,000 she could no longer deduct in 2018 and going forward was taxed at her marginal rate, likely at 37% which would be an extra $87,135 in federal income tax. That's NOT a tax cut; it's a tax INCREASE on the wealthy.
Actually, no. 80% of the benefits of trump’s tax scam went to the wealthiest 1%.
Actually, no. 80% of the benefits of trump’s tax scam went to the wealthiest 1%.
I posted a very clear example of what has happened to the wealthiest 1%'s federal income tax bill. Explain how paying a higher federal income tax amount due to Trump's new $10,000 SALT tax deduction limit equates to an 80% tax cut benefit.
No. Some people just like to correct others. You know, the spelling police people.
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