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Senate Taxation: All I Ever Wanted (now: Balancing taxes and stimulus)

Discussion in 'Community' started by Lowbacca_1977, Feb 27, 2021.

  1. Lordban

    Lordban Chosen One star 6

    Registered:
    Nov 9, 2000
    They didn't actually intend to tax wealth. They intended to spend a lot of money to show to the French citizen they were taxing wealth, and reap side benefits.
     
  2. Pensivia

    Pensivia Force Ghost star 5

    Registered:
    Apr 24, 2013
    I'm trying this now (at 4:17 a.m.) but unfortunately it's not working:p

    (I'm actually interested in this thread but never feel I have time to get into it during a regular day...so here's to insomnia, I guess!)
     
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  3. Ender Sai

    Ender Sai Chosen One star 10

    Registered:
    Feb 18, 2001
    Hard to believe in a French party.
     
  4. Lordban

    Lordban Chosen One star 6

    Registered:
    Nov 9, 2000
    Eh, it's politics. If you believe in politicians, you're a fool, regardless of the country involved.
     
  5. Obi Anne

    Obi Anne Celebration Mistress of Ceremonies star 8 Staff Member Manager

    Registered:
    Nov 4, 1998
    I have just done my taxes for the year. I pay the standard tax which comes out at 33,7%. This tax goes to my municipality and region, and it's the region that handles health care. I don't earn enough to pay any taxes to the state on my income. We do have VAT and other taxes that goes to the state though. I could say straight away that I got my money back though since I had to go to the pharmacy today and collect my insulin - and I paid nothing for that. It was also very easy to make my taxes, last week I got a notification through an app that my suggested taxes were done, I checked them and today I went in and just signed that everything was correct. Of course doing the taxes can be more complicated, especially if you are self-employed, but for most people it is simple as that. Since the taxes are withdrawn every month it's just a matter of checking that all was correct, it turns out I get a small amount back (less than $200), which is always nice. In April that sum will be sent to my bank account and then I'm done with having to think about taxes until next year.

    It is a lot more palatable to pay taxes when it's easy to do so.
     
  6. Lowbacca_1977

    Lowbacca_1977 Chosen One star 7

    Registered:
    Jun 28, 2006
    Which is directly in contrast with the American conservative mindset that "taxes should hurt"
     
    Last edited: Mar 16, 2021
  7. Ender Sai

    Ender Sai Chosen One star 10

    Registered:
    Feb 18, 2001
    Each year now, my income - salary, dividends, distributions - is all pre-populated with the Australian Tax Office. Most recent tax year I just added any crystalised capital losses; just shy of $300 in unreceipted deductions, and then a Covid rate we applied here which I think was $0.80 a day in deductions. Punch them in, instant tax calculation, easy.
     
  8. Lowbacca_1977

    Lowbacca_1977 Chosen One star 7

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    Jun 28, 2006
    In contrast, because of the weirdness of the last year, this will be the first year I get an accountant because while I worked one job all year, my wife didn't trying to ride out the ramifications of COVID. And it's complicated enough, and the government is vindictive enough, that it'll be spending a few hundred dollars to make sure that I don't do something wrong because the risks are too great if I make a mistake
     
  9. Lowbacca_1977

    Lowbacca_1977 Chosen One star 7

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    Jun 28, 2006
    I wanted to bring this back up because this issue has actually been tackled, and I'm somewhat surprised I've not heard more of it in general flow of information:

    IRS has issued guidelines that anyone that made under $150,000 before counting unemployment payments does not have to pay any taxes on the first $10,200 in benefits that they received. So this looks like it'll remove much of the pressure for anyone that didn't have money withheld from their benefits (barring those making quite a bit to begin with), and people who had withholdings would, I presume, see a bigger return than they otherwise might have. This appears to be a one-off though?

    https://www.cnbc.com/2021/03/23/10200-unemployment-tax-break-irs-makes-more-people-eligible.html
     
    Last edited: Mar 26, 2021
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  10. blackmyron

    blackmyron Chosen One star 6

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    Oct 29, 2005
    It is a one-off. My hope is that it might open up the possibility of reversing yet another conservative "punishment law".
     
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  11. Lowbacca_1977

    Lowbacca_1977 Chosen One star 7

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    Jun 28, 2006
    A new article discussing some comments by Treasury Secretary Janet Yellen about how people, particularly the rich, not paying the correct amount of taxes (through things like underreporting of income) may be resulting in a bit less than $1 trillion a year not being collected that should be. US federal income tax revenue appears to be around 3.5-4 trillion, so that's a giant amount we're missing out on.

    https://www.businessinsider.com/yel...ncollected-treasury-federal-government-2021-5

    It does suggest that if we were just collecting the taxes we should be (so more enforcement and reversing the trend of things like audits) we could have both more government spending at no increase in the deficit without changing any tax laws.
     
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  12. dp4m

    dp4m JCC Playoff Pick 'Em Winner, Also a Narc star 10 VIP - Game Winner

    Registered:
    Nov 8, 2001
    I've made this point repeatedly in the other thread. Whereas things like mortgage, child credits, SALT, etc. are proper deductions -- there are still massive loopholes for people and corporations to get through. Shockingly, this is one of the things that Republicans are typically hypocritical on -- whereas they are in favor of closing loopholes, but when showing their politicians are exploiting said loopholes it's just them "playing by the rules as they are."

    I'm also in favor of limiting some of the existing deductions (mortgage for example) whilst restoring others back to full strength (SALT for instance).
     
  13. Lowbacca_1977

    Lowbacca_1977 Chosen One star 7

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    Jun 28, 2006
    Though If I'm reading this right, it seems like this isn't even an issue of loopholes (where it's done legally but should be reassessed) and seems more like straight up failing to report things which isn't a loophole issue, it's just noncompliance. As presumably an audit wouldn't be able to push back on loopholes, as that's done above board.
     
  14. dp4m

    dp4m JCC Playoff Pick 'Em Winner, Also a Narc star 10 VIP - Game Winner

    Registered:
    Nov 8, 2001
    That's also correct, but largely -- I had thought -- due to loopholes. Where most of this would be caught in an audit -- and the richer you are, the more likely you are to need an audit -- and there's capability to do something like 5-10% of the audits necessary for personal income taxation and somewhat less for corporate.

    I haven't read the article yet, but usually that's also one of the arguments in favor of tax code simplification -- reducing the necessity of audits/IRS staffing.
     
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  15. blackmyron

    blackmyron Chosen One star 6

    Registered:
    Oct 29, 2005
    The deeper hypocrisy is that Republicans - who routinely pass and benefits from legislation creating loopholes then turn around and rail against the system they created in order to push ******** 'reform' like a flat tax or consumption tax.... which just happen to punish the non-wealthy. Oh, and they still include loopholes.