Gas, do you get a tax refund each spring? If you do you are one of the 47% moochers out there.
[Brazelton] US Ambassador to Libya killed, consulate burned down
- Thread starter GasBandit
- Start date
- Status
That doesn't necessarily mean they're paying no tax. I thought it worked the same for you guys, but I'll state what happens in Canada. Each paycheck, my employer takes off what they expect would be my taxes. So if I had only that job, and no other income, or investments, or whatever, the tax department would be exactly in-sync, and my refund would be zero. But I do contribute to things, and have education expenses, etc, all of which are income-deductible. Thus my "taxable income" for the year is less than what I paid in taxes from my paycheque. Thus the government gives me back some of my tax overpayment. That hardly means that I paid no income taxes at all, only that throughout the year I paid too much, and am now getting that money back.
I thought that was more-or-less exactly how it worked in the USA as well? Different things that are income-deductible (very few things are TAX-deductible, though that's the usual phrase) of course, but still, I thought the basics of the system were the same?
This only applies if your total tax refund is greater than your total withholding for the year. And that 47% number is a bit disingenuous, as it only counts income tax and not FICA/SS... though supposedly, FICA and SS aren't tax programs, but payments on future benefits. Whether it actually works out that way for those of us under the age of 40 right now remains to be seen.
Sent from my SPH-D710 using Tapatalk 2
GasBandit
Staff member
Actually, as I have repeatedly and proudly stated, every year I make it a priority to make sure that my withholding does not exceed my tax liability. I can't remember the last time I got a refund, and have once even made it as thin as owing a $0.02 payment.
I don't give interest free loans to the government.
So basically you do not pay income tax, if all of your federal taxes come out of your payroll tax.
GasBandit
Staff member
No, as Papachronos tried to explain to you, that is only the case if my refund exceeds my withholding, which is most certainly does not, seeing as how I never get a refund but still am subject to withholding. I'd need a whooooole lot more deductions to effectively not pay federal income taxes (or even get a refund beyond withholding). In fact I'm not sure it's posible for me.
But as I live in Texas, I don't pay state income taxes, natch. Cause we don't have that here.
This is a disturbing quote to me. Do you really think just because you don't owe EXTRA in April that you don't pay income tax? Payroll/income tax is the SAME THING. Payroll just makes it easier to come off "transparently" rather than in a big lump sum which a lot would have trouble budgeting for.
I don't know how it works in Canada, but income tax is paid from the employees salary not from the employer out of a different account.
If I make $40,000 salary, income tax comes from that, and it get less than my accepted salary.
The IRS requires employers to withhold employee income to pay income tax. But it still comes out of the employee's salary.
Payroll taxes are different from income taxes, though both are withheld from an employee's paycheck by the employer. Payroll taxes are Social Security (10.4%) and Medicare (2.9%), though if you are employed, the employer pays slightly more than half of that (self-employed evil businessmen pay all of it themselves). Income tax is the federal rate for your bracket, minus any deductions, and is withheld from your paychecks based on how many deductions you claim on your W4 form. Income tax is on top of FICA and Medicare. At the end of the year, your total income tax liability is added up, and withholdings throughout the year are subtracted. If there is a negative balance, you overpaid and are refunded the difference.
The moocher thing comes in when one's tax liabilities are less than one's deductions, thus leading to a "refund", even if nothing is withheld in the first place.
Sent from my SPH-D710 using Tapatalk 2
GasBandit
Staff member
Eriol is also correct in that a payroll tax is a de facto income tax, because your boss has to figure it into the cost of what it takes to keep you on the payroll, so for all intents and purposes it's income that is immediately snatched out of your paycheck and goes directly to the government.
"in practice or actuality, but not officially established."
Looks fine to me... maybe you just missed the fact that i was being facetious about your de facto
defence of Romney's pandering little comment, which i doubt he even believes, considering Romenycare and his policies as governor...
GasBandit
Staff member
Oh, I saw your trollface, it's just it was a "francis smiley" to try to indemnify yourself from being labeled a tool, and I don't buy those."in practice or actuality, but not officially established."
Looks fine to me... maybe you just missed the fact that i was being facetious about your de facto
As for Romney, much as I said about Clinton back in the day - Everybody has to believe in something. Romney believes he wants to be President.
See, that's my problem on the internet, i assume what im saying (and my sig) makes it clear i'm being sarcastic at least 90% of the time...
Also, Kolob and magic underwear... and yet those make more sense then his current tax plan (math takes too much time, heh: ).
You want to read my sig you have to work for it you lazy bum...
Dave
Staff member
McCain: Oops. Sorry about that.
http://thinkprogress.org/security/2012/11/20/1225461/mccain-rice-benghazi-talking-points/?mobile=nc
http://thinkprogress.org/security/2012/11/20/1225461/mccain-rice-benghazi-talking-points/?mobile=nc
- Status