The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Tax Deferred Annuity right for me?||Date: 4/27/2013 12:43 PM|
|Author: JAFO31||Number: 118501 of 124471|
Phil: <<<True, taxes are partially payment for government services, but they are also part of our social compact, what Justice Holmes called "what we pay for a civilized society.">>>
"True. But let’s look at it as business transaction."
It is not a business transaction! I dispute the applicability of the analogy.
"People are looking at the services they are getting and they are not satisfied with them. Plus, they are paying a lot more for those services than someone else. The question comes to their mind is: Am I playing my fair share or am I be taken advantage of?"
Please define "fair share".
According to the Tax Foundation Data, the only groups that routinly pay taxes at a rate disprportionately higher than the share of AGI that they report are the Top 1% and the Next Top 4%. Those in the Next 5% are close, sometimes higher and sometime lower, and the Bottom 90% all pay FIT at a rate lower than the share of AGI they report.
See - http://taxfoundation.org/article/summary-latest-federal-inco...
Are you suggesting that "fair share" should involve raising the taxes of 90% of the filers, keeping them more or less the same for 5% and then reducing them for the Top 5%, with most of that skewed toward the Top 1%?
IF not, then what do you mean?
Furthermore the AGI cut-offs for the Top 1% and Top 5% for 2010 were $369,691 and $161,579, respectively, and had effective tax rates of 23.39% and 20.64%, respectively. Id. Tables 7 and 8.
Eve after FIT, the Top 1%, on average, still had $286,590 ((1-.2329)*$369,691) and the Top 5% $128,229 (1-0.2064)*161579, which are after tax numbers still higher than the pre-tax AGI of 95% and 90% of the filers, respectively.
I forget which poster wrote about the humbling result of working at VITA and realizing that there are many people who annual income is less than his tax obligation and the perspective that can be gained therefrom.
You are grumbling, BUT WHAT IS YOUR PROPOSAL?
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