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Don't You Think It Is Time To Change Our Income Tax Laws?

Little Angel 2012/06/07 22:46:26
There should be a fair percentage for everyone...
There should be no Income Tax....
There should be higher taxes for the rich than the rest of us...
Undecided
None of the above
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NEW YORK (CNNMoney) -- It's a statistical blip, but a stunning one.

In 2009, six tax filers among the country's 400 richest tax filers owed absolutely nothing in federal income taxes.

Not a penny.

This, despite the fact that those six filers belong to a group whose average adjusted gross income clocked in at $202.4 million, according to new IRS data.

Now, it's not news that close to half of the more than 140 million U.S. tax filers end up with no federal income tax liability. Nor is it news that a sliver of those non-payers make seriously big bucks.

But it's eye-opening when anyone among the 400 highest income tax filers is among them.

As
a group, of course, high-income households pay more into federal
coffers than the vast majority of Americans combined, and their
effective tax rates are often higher than what most Americans pay.

So how is it that a lucky few can wind up owing nothing at all?

Without
being able to examine the returns, which are confidential, no one can
say with certainty how those six filers in the top 400 did it in 2009.

"Each
return is a different story," said Edward Kleinbard, former chief of
staff at the nonpartisan congressional Joint Committee on Taxation.

But
the likely reason is straightforward. "It's because the tax code allows
them to do it," said tax lawyer Christopher Bergin, president and
publisher of Tax Analysts.

In particular, the foreign tax credit and the deduction for charitable contributions may have played big roles, Kleinbard said.

The very wealthy often
invest in foreign businesses and other non-U.S. investments. If they
pay tax on those investments to foreign governments, they can take a
credit on their U.S. return for those payments to avoid double taxation.

Similarly,
the richest of the rich also are well positioned to give away large
amounts of money. Charitable contributions let a wealthy donor
contribute to the social good while substantially dialing down his tax
liability.

And it's possible a number of other itemized deductions -- such as those for state and local taxes paid -- helped as well.

For Bergin, the phenomenon of uber-rich non-payers is yet another good argument for Congress to reform the tax code.

Tax
experts would prefer that policymakers greatly reduce the number of tax
breaks available and, if affordable, reduce income tax rates as well.

Under
that kind of regime -- which is easier to propose than pass --
taxpayers would have fewer opportunities to shelter money and therefore
would have less reason to make financial or economic decisions based on
the tax consequences.

But since one goal of reform is to simplify
the tax system, lawmakers should avoid drafting special rules designed
to ensure that there are no non-payers above a certain level.

No wonder so many think they should up the taxes on the Rich. The problem

is not how much they are taxed but all the ways they can avoid paying what

they really owe. I am wanting to know what you think the Government should

do about the Income Tax System?

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  • Brosia 2012/08/20 21:37:36
    Undecided
    Brosia
    +1
    Actually, I do agree that there should be a fair rate for everyone, no matter their wages. My mother pays about 25%, why should those making 10x what she does pay a lesser percentage? That doesn't seem fair to me. What seems fair is the less you make, the lower percentage you pay, not the other way around.
  • John Galt jr or Ron/jon 2012/07/24 21:36:49
    There should be no Income Tax....
    John Galt jr or Ron/jon
  • Nimitz 2012/07/24 20:33:13
    There should be no Income Tax....
    Nimitz
    +2
    Yes! It's time to change our income tax (slavery) laws. Eliminate them altogether.
  • Delete 2012/07/24 20:18:22
  • Wake The Sheeple 2012/07/24 16:43:52
    There should be no Income Tax....
    Wake The Sheeple
    +1
    Legally there isn't one. Illegally there is one.
  • TuringsChild 2012/07/06 19:21:51
    There should be no Income Tax....
    TuringsChild
    +3
    Yes. ALL Amendments enacted after the US was co-opted by banksters should be rescinded, including the one that was passed in the dark of night to make an unconstitutional tax 'constitutional'.
  • There should be no Income Tax....
    ☆The Rock☆ * AFCL* The Sheriff!!
  • Wake Th... ☆The Ro... 2012/07/24 16:44:46
    Wake The Sheeple
    +1
    The fair tax is a gateway to a VAT, we don't need that either.
  • All American 2012/06/20 14:24:34
    None of the above
    All American
    +1
    Flat tax, everyone pays, no free rides. Nuff said, you're welcome.
  • INDIGO 2012/06/11 14:45:06
    There should be higher taxes for the rich than the rest of us...
    INDIGO
    +1
    Tax the Uber-rich waaaaay more than they are taxed now!!!!
  • All Ame... INDIGO 2012/06/20 14:26:19
    All American
    +1
    They already pay more than their fair share. It's time for the whiners and complainers, you know, the ones who pay nothing to pony up and contribute.
  • Little ... INDIGO 2012/06/27 01:23:52
    Little Angel
    Their taxes are most likely already fair...they just have too
    many tax breaks that allow them to pay so much less.
  • words t... Little ... 2012/07/25 03:06:10
    words to live by
    If you're not a business owner how would you know what they pay? You listen to the far left too much who thinks Capitalism is sinful. I own a business which is incorporated. An S Corporation to be exact. In Virgina the corporate tax rate is rather high, but how will our states survive if there were no taxes? How would they pay for welfare, Medicaid, food stamps, housing, CHIP, etc: 50% of Americans are depending on the other 50% who work to support them. The business person pays unemployed insurance to their state. Since there are no jobs, the rates have increased terribly. I paid 13,000 dollars in federal taxes this year after deductions. Not all business will have enough deductions to get away with not paying their fair share. Besides all the above, have you ever worked for a poor man?
  • Turings... INDIGO 2012/07/06 19:23:08
    TuringsChild
    +1
    They'll just move to Geneva.
  • holly go lightly 2012/06/10 13:56:20
    None of the above
    holly go lightly
    +2
    There should a consumption tax at the same rate for all.No income should ever be taxed.
  • Freight85 2012/06/08 16:59:57
    There should be no Income Tax....
    Freight85
    +4
    People should know what the corrupt mega banksters secretly did (in the early 1900's) at "Jekyl Island" then vote.
  • Wake Th... Freight85 2012/07/24 16:45:40
    Wake The Sheeple
    +1
    Bingo!
  • wtw 2012/06/08 13:37:48
    None of the above
    wtw
    +3
    We need to change the IRS and erase all loophole, then we need a flat tax rate that applies to all.
  • sjalan 2012/06/08 04:29:12
    There should be a fair percentage for everyone...
    sjalan
    +1
    NO MORE DEDUCTIONS OF ANY KIND. PERIOD. NO MORE TREATING INCOMES OF DIFFERNT KINDES DIFFERENTLY. iF IT IS INCOME IT GETS TAXED ALL THE SAME.

    The lower the overall rate based upon a minium tax starting at three times the poverty level. THEN get everyones income above the poverty level by at least four times.
  • Jane 2012/06/08 04:27:09
    None of the above
    Jane
    Get rid of loop holes and write offs and make the 1% pay 8 % on profits over 2 million.
  • Waldorf 2012/06/08 00:15:44
    None of the above
    Waldorf
    +2
    I am suspicious of what someone means by "fair". I think that's code for taxing the more productive people and giving it to those who are along for the ride.
  • words to live by 2012/06/08 00:13:57
    None of the above
    words to live by
    +6
    There is NO LAW stating we Americans HAVE TO PAY FEDERAL INCOMES TAXES...

    is there a law making americans pay federal income taxes
  • All Ame... words t... 2012/06/08 15:50:34
    All American
    +2
    Don't really know much about law, but I found the following:

    Section 8. Clause 1. The Congress shall have Power to lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States.
  • DeeB All Ame... 2012/06/08 17:44:12
    DeeB
    +4
    That I believe is excise tax , not income. There is no law for income. They are lying.
  • All Ame... DeeB 2012/06/08 21:12:48
    All American
    +2
    All I know is if you don't pay, you go to jail.
  • DeeB All Ame... 2012/06/08 21:26:18
    DeeB
    +4
    And that is exactly how they get away with it. If the whole country said NO they couldn't do a damned thing about it. You can google Freedom to Fascism by Aaron Russo the documentary and hear the truth. In it is a guy that used to work for the IRS but found out it's a scam and started asking questions and was let go. He has other videos also.
  • All Ame... DeeB 2012/06/08 23:24:04
    All American
    +1
    All I know, there is an established body of law and many have challenged it, but I don't think they have fared well.
  • DeeB All Ame... 2012/06/09 14:03:18
    DeeB
    +3
    Some have. Depends on the jury. The people in this nation need to start doing jury nullification.
  • All Ame... DeeB 2012/06/09 14:11:13
    All American
    +2
    Ok, I volunteer you to stop paying taxes.
  • DeeB All Ame... 2012/06/10 13:05:04
    DeeB
    +2
    Okay, it's a deal!
  • All Ame... DeeB 2012/06/10 13:23:15
    All American
    +1
    I'll root for you.
  • DeeB All Ame... 2012/06/10 13:45:04
    DeeB
    +1
    Thanks!
  • Little ... All Ame... 2012/06/08 23:13:28
    Little Angel
    +4
    That is so true! My Brother -In- Law decided it was unconstitutional to
    be charged Income Taxes. He didn't pay them for several years but the
    IRS caught up with him. He spent a year in Federal Prison while his wife
    & 3 children had to go on Welfare. Of course this was our Government
    being ridiculous once again because it would have been better to let
    him keep the really good job (which he lost while in jail) and supported
    his Family & paid the taxes plus fines.
  • All Ame... Little ... 2012/06/08 23:22:54
    All American
    +1
    That's the reason I pay. Our so called "contribution" is the price we pay for freedom.
  • DeeB All Ame... 2012/06/09 14:04:15
    DeeB
    +1
    Freedom? LOL!
  • All Ame... DeeB 2012/06/09 14:10:49
    All American
    Freedom from jail.
  • DeeB All Ame... 2012/06/10 13:07:42
    DeeB
    +1
    Well the whole country has become one big jail, and they don't even need the bars!!
  • Wake Th... All Ame... 2012/07/24 16:47:54
    Wake The Sheeple
    +1
    So our government might as well be the mob.
  • All Ame... Wake Th... 2012/07/24 16:48:57
    All American
    +1
    The do shake us down, don't they?
  • Wake Th... All Ame... 2012/07/24 17:02:14
    Wake The Sheeple
    +2
    They do. So let's try them and incarcerate them just like we did the mob.

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