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URL:  http://boards.fool.com/impolitereduce-some-of-their-tax-burden-tis-30444788.aspx

Subject:  Re: oehner’s Plan B raises taxes on poor Date:  12/20/2012  8:05 PM
Author:  telegraph Number:  46976 of 108147

impolite:Reduce some of their tax burden, 'tis true - but even as a fairly well off middle-income couple, our federal income taxes are only a portion of what we pay in taxes every year. State income taxes to two states, a local tax, personal property taxes are all on the list as well, and are not impacted by refundable credits at the federal level. "

Let's face it...it's the 'middle class' folks living in high cost areas that aren't paying their fair share.

They get to deduct their high real estate taxes and high state income taxes..to the tune of 20 to 30,000 thousand a year, sometimes even more. That means....they are taking advantage of tax loopholes that most lower income folks can't take. The lower income folks are stuck with the 'standard deduction'. They still got to pay their income taxes and real estate taxes (or pay real estate taxes via rent).

The middle class folks get a 'tax break'. The lower income folks don't.

The high roller middle class gets to deduct charitable giving. Write off 28% plus likely 10% more in states like CA....38% reduction in taxes...wow....

Meanwhile the lower middle class and the poor , if they give something, and manage to squeak over the 'standard deduction limit'...get almost no break.....their tax rate is maybe 15% or 20%....so they only get to write off a fraction of their giving.

It's the high rollers in high tax states like CA, MA, CT, NYC area...that cost the nation a trillion dollars in avoided tax. As those states jack up the rates...well, those taxes are just paid to the states....and the income earners get a nice big write off against fed taxes.....writing maybe 30% of them off....

Until you start putting limits on deductions.....you 'rich' middle class ain't a paying your fair share.

Worse, our tax code gets zero revenue from nearly half the people in the country with income..... we're talking INCOME taxes......

and a good part of that half is TAKING money from the taxpayers in 'entitlement' programs...and welfare and give away programs and subsidies and food stamps and Sec 8 housing and AID for dependent kids and college tuition 'grants' and a thousand other give away programs from free cheese to Obama Phones to everything else. it seems.



t.
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