does anyone else get raped by taxes?

[Apex]

Originally posted by: Engineer

Originally posted by: spidey07
it only gets worse the more you make.

keep voting republican.

That's true. The more you make, the more the republicans help you!

I'm saving my money (once my house is paid off ) so I can become a Republican someday!

$26,000 (including SS) held out this year. Looking for little or no refunds!

Close.

The more you make, the less harm the Republicans inflict on you. Both sides get their pound of flesh, it's just the liberals try to make it 2-3 lbs.

At $26k, don't worry, you're at about parity. At just about $30k, you're already benefiting from the cuts.

 

[DaiShan]

Originally posted by: huberm
all i know is, before taxes & deductions, I pull in 1893.60 biweekly or more. After they deduct everything, I only get $1185 :~(

is it this bad for anyone else? My deductions are as follows:

taxes (federal, state, medicare, & OASDI): $547.23
health insurance: $33.28
pension plan: $17.42
401(k): 152.39

Total: 750.32

does this sound typical for a single guy?

its like everyone gets a memo that you are making money.....oh well, guess I should be thankful that I actually have money to pay taxes....

Heh, just wait until you get into the upper tax brackets. Rape is a nice way of putting what they do to you then

 

[kranky]

Originally posted by: SearchMaster

Originally posted by: Eeezee
I've never liked having big chunks of my paycheck taken out; I'd rather write a check at the beginning of the next year for however much I owe while making money with the full extent of my pay.

Doesn't that make more sense, or am I missing something? You'll end up with a little bit more net income in the end if you minimize withholdings and invest until it comes time to pay up, correct? Buy a 7-month CD in June using all of the extra money you get for choosing the smallest withholdings. It matures; you gain a little bit and end up paying nearly the same. What matters is that you came out with more money that you'd have earned otherwise if you allowed the government to take big chunks of your paycheck and ended up breaking even or even earning a tax credit.

Please explain if having a larger withholding somehow changes things, as I am no expert at the tax system.

That's how it used to be, from the time Federal Income Tax was instituted until World War II, when required withholdings were "temporarily" implemented. 60+ years later...

Another fun fact: when the Federal Income Taxes was being debated in Congress, there was a push for a maximum rate to be written into the Constitutional Amendment to avoid abusive taxes by future administrations. This was rejected under the assumption that if you implement a max, the rates would quickly be raised to the max by unscrupulous administrations. Now, how good would that 5% proposed maximum rate look now?

They will NEVER allow you to keep all your money then write a check for what you owe. That would make it too obvious to the public how high taxes really are. With the withholding system, most people are oblivious. All they care about is if they owe more or are getting a refund. The sheer size of the tax doesn't even register.

 

[sandmanwake]

Originally posted by: Queasy

Originally posted by: SearchMaster

Originally posted by: Eeezee
I've never liked having big chunks of my paycheck taken out; I'd rather write a check at the beginning of the next year for however much I owe while making money with the full extent of my pay.

Doesn't that make more sense, or am I missing something? You'll end up with a little bit more net income in the end if you minimize withholdings and invest until it comes time to pay up, correct? Buy a 7-month CD in June using all of the extra money you get for choosing the smallest withholdings. It matures; you gain a little bit and end up paying nearly the same. What matters is that you came out with more money that you'd have earned otherwise if you allowed the government to take big chunks of your paycheck and ended up breaking even or even earning a tax credit.

Please explain if having a larger withholding somehow changes things, as I am no expert at the tax system.

That's how it used to be, from the time Federal Income Tax was instituted until World War II, when required withholdings were "temporarily" implemented. 60+ years later...

Another fun fact: when the Federal Income Taxes was being debated in Congress, there was a push for a maximum rate to be written into the Constitutional Amendment to avoid abusive taxes by future administrations. This was rejected under the assumption that if you implement a max, the rates would quickly be raised to the max by unscrupulous administrations. Now, how good would that 5% proposed maximum rate look now?

Another fun fact: Democrats tried to get the progressive income tax signed into law several times but the Supreme Court ruled it unconstitutional. It wasn't until the Republicans agreed to put it up as a Constitutional Amendment did it pass. The Republicans at the time didn't think it would pass but a little case of possible fraud and the fact that it was sold as a tax only on the rich allowed the Constitutional Amendment to pass.

Fair Tax anyone?

The "fairtax" wouldn't be fair to those of us who have paid into a Roth IRA or Roth 401k plan. We'd be double taxed. Just have an across the board flat tax that's a percentage of your gross income, no deductions.

 

[Engineer]

Originally posted by: Apex
At $26k, don't worry, you're at about parity. At just about $30k, you're already benefiting from the cuts.

Can you explain your above statement? Paying $26,000 in taxes is parity?

 

Originally posted by: FrozenCanadian

Originally posted by: eakers
I live in Canada.

/thread.

Canadians pay some of the most highest taxes in the world. I only make 11-12K a year and get around 200 back.

No, they don't. Canada is about right in the middle for income tax in the world.

 

[yosuke188]

who is taxes?

 

[Apex]

Originally posted by: Engineer

Originally posted by: Apex
At $26k, don't worry, you're at about parity. At just about $30k, you're already benefiting from the cuts.

Can you explain your above statement? Paying $26,000 in taxes is parity?

My mistake. I thought that the tax cut affected people from $30k and up. Actually, it extends well below. In fact, even at $26k unmarried with no children, you benefit:

Single - 0 Children
Income
$ 26,000 Current tax: $ 2843 New tax: $ 2542 Savings: $ 301
$ 36,000 Current tax: $ 4758 New tax: $ 4362 Savings: $ 396
$ 50,000 Current tax: $ 8678 New tax: $ 7862 Savings: $ 816
$ 76,000 Current tax: $16153 New tax: $ 14363 Savings: $ 1791
$ 100,000 Current Tax: $ 23593 New tax: $ 20362 Savings: $ 3231

So, congrats, you saved about $301 thanks to the Bush tax cut. If you're married and/or have children, the savings are way bigger.

ie. If you have a child:

Single - 1 Child
Income
$ 26,000 Current tax: $ 1623 New tax: $ 622 Savings: $ 1001
$ 36,000 Current tax: $ 3123 New tax: $ 2122 Savings: $ 1001
$ 50,000 Current tax: $ 5690 New tax: $ 4582 Savings: $ 1108
$ 76,000 Current tax: $ 13020 New tax: $ 11082 Savings: $ 1938
$ 100,000 Current Tax: $ 20190 New tax: $ 17082 Savings: $ 3108

 

[waggy]

i don't mind what i pay in income taxes. but man i really hate paying my property tax. $4500 a year! ugh

 

[Engineer]

Originally posted by: Apex

Originally posted by: Engineer

Originally posted by: Apex
At $26k, don't worry, you're at about parity. At just about $30k, you're already benefiting from the cuts.

Can you explain your above statement? Paying $26,000 in taxes is parity?

My mistake. I thought that the tax cut affected people from $30k and up. Actually, it extends well below. In fact, even at $26k unmarried with no children, you benefit:

Single - 0 Children
Income
$ 26,000 Current tax: $ 2843 New tax: $ 2542 Savings: $ 301
$ 36,000 Current tax: $ 4758 New tax: $ 4362 Savings: $ 396
$ 50,000 Current tax: $ 8678 New tax: $ 7862 Savings: $ 816
$ 76,000 Current tax: $16153 New tax: $ 14363 Savings: $ 1791
$ 100,000 Current Tax: $ 23593 New tax: $ 20362 Savings: $ 3231

So, congrats, you saved about $301 thanks to the Bush tax cut. If you're married and/or have children, the savings are way bigger.

ie. If you have a child:

Single - 1 Child
Income
$ 26,000 Current tax: $ 1623 New tax: $ 622 Savings: $ 1001
$ 36,000 Current tax: $ 3123 New tax: $ 2122 Savings: $ 1001
$ 50,000 Current tax: $ 5690 New tax: $ 4582 Savings: $ 1108
$ 76,000 Current tax: $ 13020 New tax: $ 11082 Savings: $ 1938
$ 100,000 Current Tax: $ 20190 New tax: $ 17082 Savings: $ 3108

Apex, I paid IN $26,000 IN TAXES this year (all forms of taxes including SS, Medicare, State, local, federal), not my income being $26,000! :shocked:

 

[Engineer]

Originally posted by: waggy
i don't mind what i pay in income taxes. but man i really hate paying my property tax. $4500 a year! ugh

Nice thing about living in a housing market that isn't too overvalued!

($1,446 this year: .9960% property tax base)

 

[Apex]

Originally posted by: Engineer

Originally posted by: Apex

Originally posted by: Engineer

Originally posted by: Apex
At $26k, don't worry, you're at about parity. At just about $30k, you're already benefiting from the cuts.

Can you explain your above statement? Paying $26,000 in taxes is parity?

My mistake. I thought that the tax cut affected people from $30k and up. Actually, it extends well below. In fact, even at $26k unmarried with no children, you benefit:

Single - 0 Children
Income
$ 26,000 Current tax: $ 2843 New tax: $ 2542 Savings: $ 301
$ 36,000 Current tax: $ 4758 New tax: $ 4362 Savings: $ 396
$ 50,000 Current tax: $ 8678 New tax: $ 7862 Savings: $ 816
$ 76,000 Current tax: $16153 New tax: $ 14363 Savings: $ 1791
$ 100,000 Current Tax: $ 23593 New tax: $ 20362 Savings: $ 3231

So, congrats, you saved about $301 thanks to the Bush tax cut. If you're married and/or have children, the savings are way bigger.

ie. If you have a child:

Single - 1 Child
Income
$ 26,000 Current tax: $ 1623 New tax: $ 622 Savings: $ 1001
$ 36,000 Current tax: $ 3123 New tax: $ 2122 Savings: $ 1001
$ 50,000 Current tax: $ 5690 New tax: $ 4582 Savings: $ 1108
$ 76,000 Current tax: $ 13020 New tax: $ 11082 Savings: $ 1938
$ 100,000 Current Tax: $ 20190 New tax: $ 17082 Savings: $ 3108

Apex, I paid IN $26,000 IN TAXES this year (all forms of taxes including SS, Medicare, State, local, federal), not my income being $26,000! :shocked:

And you're not a Republican yet? Tell me you're a fiscal conservative?

 

[Dacalo]

I pay about 25% for tax.

 

[Engineer]

Originally posted by: Apex

And you're not a Republican yet? Tell me you're a fiscal conservative?

Very much so, but I can't find any to vote for...sadly!

 

[waggy]

Originally posted by: Engineer

Originally posted by: waggy
i don't mind what i pay in income taxes. but man i really hate paying my property tax. $4500 a year! ugh

Nice thing about living in a housing market that isn't too overvalued!

($1,446 this year: .9960% property tax base)

it sucks. i live in a small town of maybe 100 people. We pay MORE taxes then the 3 nearest good size towns.

We do not have sewage , water , local police (gotta rely on county) or fire.

Heck the kids don't even go to the county school district we pay into (wish we lived in the other county my taxes would be 1200 LESS).

oh and id on't even get a library card!

 

[Engineer]

On second thought waggy, you're right. Paying taxes year in and year out on something that you purchased and own (such as a house or car) really does suck. It's a "privilege" tax in that you pay taxes for the privilege of owing that home or car. On top of that, most local governments have an income tax as well!

One would think that local governments would be raking in the money from property taxes as housing values have skyrocketed this year! :Q

 

[FrozenCanadian]

In Canada (not me) we tend to elect the Conservative party because with them the rich get richer and the poor get poorer.

EDIT: Canada has more Millionares per square inch.

 

[Apex]

Originally posted by: FrozenCanadian
In Canada (not me) we tend to elect the Conservative party because with them the rich get richer and the poor get poorer.

Seriously, if only more people would vote liberal, then you guys would have equal poverty for all.

 

[Engineer]

Originally posted by: FrozenCanadian
In Canada (not me) we tend to elect the Conservative party because with them the rich get richer and the poor get poorer.

I'm not so sure that doesn't happen with any party, especially in today's system bought and paid for by corporations and the wealthy...in which all those elected are multi-millionaires to begin with.

 

[huberm]

Originally posted by: Engineer

Originally posted by: waggy
i don't mind what i pay in income taxes. but man i really hate paying my property tax. $4500 a year! ugh

Nice thing about living in a housing market that isn't too overvalued!

($1,446 this year: .9960% property tax base)

got you beat...i pay $776/year in property taxes.

Bought my home 6 months ago for $100,000. Was warned by the realtor that if my home value goes up too much, it will price itself out of the market (ie no buyers).

Thats the ONLY thing I like about Indiana.

 

[Eeezee]

Originally posted by: kranky

Originally posted by: SearchMaster

Originally posted by: Eeezee
I've never liked having big chunks of my paycheck taken out; I'd rather write a check at the beginning of the next year for however much I owe while making money with the full extent of my pay.

Doesn't that make more sense, or am I missing something? You'll end up with a little bit more net income in the end if you minimize withholdings and invest until it comes time to pay up, correct? Buy a 7-month CD in June using all of the extra money you get for choosing the smallest withholdings. It matures; you gain a little bit and end up paying nearly the same. What matters is that you came out with more money that you'd have earned otherwise if you allowed the government to take big chunks of your paycheck and ended up breaking even or even earning a tax credit.

Please explain if having a larger withholding somehow changes things, as I am no expert at the tax system.

That's how it used to be, from the time Federal Income Tax was instituted until World War II, when required withholdings were "temporarily" implemented. 60+ years later...

Another fun fact: when the Federal Income Taxes was being debated in Congress, there was a push for a maximum rate to be written into the Constitutional Amendment to avoid abusive taxes by future administrations. This was rejected under the assumption that if you implement a max, the rates would quickly be raised to the max by unscrupulous administrations. Now, how good would that 5% proposed maximum rate look now?

They will NEVER allow you to keep all your money then write a check for what you owe. That would make it too obvious to the public how high taxes really are. With the withholding system, most people are oblivious. All they care about is if they owe more or are getting a refund. The sheer size of the tax doesn't even register.

No, of course they won't. But taking the bare minimum withholding is the next best thing, as you're almost guaranteed to owe money in the end.

I don't think I'll ever understand why people will do anything but the minimum; you make/save more money this way!! The government will still take a big percentage of what you earn, but you can at least let your money work for you until it's time to pay George. In the end you lose a little less while paying a little more - you both win and lose, you win in the sense that you've earned interest off of some of the money that you'll be losing, you lose in the sense that the government tax system is ludicrous.

 

[kranky]

Originally posted by: Eeezee
No, of course they won't. But taking the bare minimum withholding is the next best thing, as you're almost guaranteed to owe money in the end.

I don't think I'll ever understand why people will do anything but the minimum; you make/save more money this way!! The government will still take a big percentage of what you earn, but you can at least let your money work for you until it's time to pay George. In the end you lose a little less while paying a little more - you both win and lose, you win in the sense that you've earned interest off of some of the money that you'll be losing, you lose in the sense that the government tax system is ludicrous.

Having the bare minimum withheld is not an option. If you don't have enough withheld throughout the year, and owe more than a certain percentage more than your withholding, there's a penalty.

But there's nothing wrong with carefully planning so that you keep as much as you can until April 15th.

 

[AlienCraft]

Originally posted by: huberm
all i know is, before taxes & deductions, I pull in 1893.60 biweekly or more. After they deduct everything, I only get $1185 :~(

is it this bad for anyone else? My deductions are as follows:

taxes (federal, state, medicare, & OASDI): $547.23
health insurance: $33.28
pension plan: $17.42
401(k): 152.39

Total: 750.32

does this sound typical for a single guy?

its like everyone gets a memo that you are making money.....oh well, guess I should be thankful that I actually have money to pay taxes....

Someone has to pay for the war and the tax cuts to the top 5%.
Now, hush your mouth and get back in the field.