Federal Income Taxes

501 C IRS Regulation: GOP Attack Is To Destroy Ability To Tax, And To Transform America!

The Internal Revenue code includes 501C, which is designed to give non profit organizations an exemption from federal income tax, with the non profit organizations to be engaged in “social welfare”.

It is NOT designed to give protection from income tax to organizations engaged in politics, but that is exactly what has been going on, allowing left wing and right wing groups to be protected from taxation, while engaged in political activities, which was NOT a purpose of the IRS regulations.

In so doing, the right wing groups have now mounted an attack on the IRS itself, due to the activities of IRS bureaucrats in Cincinnati, and this is exactly what the Tea Party groups want—to destroy the ability to tax, and transform the nation’s future to an extremist agenda, with ultimate aim of destroying the New Deal and Great Society!

If their attack on the IRS is successful long term, it undermines the ability of the nation to deal with its domestic and foreign challenges, so this is not a light matter in any sense! It is an issue of the long term survival of the ability of the national government to do its job!

An Outrage: 21,000 Wealthy Americans Avoid Paying ANY Income Tax!

Deductions and exemptions in the US Tax Code have allowed approximately 21,000 wealthy Americans, including billionaires, to avoid paying ANY income tax to the US government!

How can one avoid paying taxes?

Donations to charity
Earning income overseas
Writing off doctor bills
Investing in state and local governments

This number, 21,000, is only one half of one percent of the 4 million taxpayers who make up the top 3 percent. So no one is saying that the wealthy do not pay taxes, as a group, but many pay only what Mitt Romney pays, less than 15 percent, because they do not work for a living, and instead make their income primarily on investments.

Altogether, about 3 million people who earn more than $50,000 pay no federal income taxes, while 56 million Americans who earn less than $50,000 avoid federal income taxes.

While there is a lot of anger about the 56 million, realize most of these people make so little, far less than $25,000 for most, and continue to pay medicare and social security taxes and sales and property taxes, and cannot make ends meet as it is, while the 21,000 who are wealthy and avoid taxes could contribute a decent percentage of their income, but have lawyers and accountants to avoid their responsibilities!

There is a dire need to crack down on tax avoiders, but it will not happen under a President Romney, and in fact, will only get worse if the former Massachusetts Governor is elected President, while the poor and working class will actually have more taken from them, when they already have so little!

The False Argument About Federal Income Tax Collection From Low Income Earners

Conservatives LOVE to point out that 47 percent of the American people pay no federal income tax, and that it should be required that everyone contribute, before we raise taxes on the extremely wealthy and the corporations!

The fact is that the reason that so many Americans do NOT pay federal income tax is because their earned income is so low, or because of various deductions that are available to everyone in theory. And the wealthy get a lot more benefit out of using these tax deductions!

The fact that corporations and the wealthy pay very low taxes as compared to their income does not bother conservatives, but damn it, those poor people or single mothers MUST pay their fair share, which would, at the most, be maybe under $25 per year if a minimum was required.

That is NOT going to resolve the issue of collection of enough taxation to deal with federal budget demands!

And, of course, those who do not pay federal income tax because of low income, still pay the payroll tax on Social Security and Medicare, which can be quite a burden on a low income, while for Social Security, if one earns more than $106,800, they pay NO additional Social Security tax!

Additionally, all taxpayers pay state and local sales taxes and property taxes if they own their home, and this can be quite a burden on low income earners!

So the argument about federal tax collection is a FALSE argument, and conservatives should be criticized for their lack of honesty about the matter!

Warren Buffett Calls Upon Wealthy To Pay More In Taxes: Absolutely Appropriate!

Billionaire Warren Buffett has called upon the wealthy, like himself, to start paying their fair share of taxes, including capital gains taxes at a higher rate, as most of them do not work and do not pay federal income tax on a job, as we all do! Buffett says that he should pay a higher level of taxes than his secretary does, and he is ABSOLUTELY CORRECT!

It is about time that this occur, and yet, Rick Perry says that the half of the population who do not pay federal income taxes should start paying, conveniently forgetting that they do not make enough income to be able to survive as it is!

Plus, the poor DO actually pay many taxes, including state and local income and sales taxes, gasoline taxes, and payroll taxes on Social Security and Medicare!

Why should those who have stocks and bonds be able to avoid the rate of taxation that middle class working Americans pay on their employment income?

With 14 and a half months to go to the Presidential Election of 2012, the clear cut differences are drawn, for all who have any brains, intelligence, and sense of social justice, to see clearly!

Should We Be Upset That 45 Percent Of American Households Pay No Federal Income Taxes? NO!

As American finish tax forms due by tonight, the controversy over who pays federal income taxes arises yet again.

Conservatives and Republicans have no problem condemning the fact that 45 percent of American households pay no federal income tax. The fact that 68 percent of American households under $50,000 income pay no taxes vexes them.

But can a family of four, in reality, be expected to pay federal income taxes when they have a problem in almost any part of the country paying rent, food, and other basic needs that every family with children has?

Realize all taxpayers everywhere pay state sales taxes, and property taxes if they own their home, and state and local income taxes in all but seven states, as well as Social Security taxes and Medicare taxes!

Realize that health care for millions is extremely expensive for a family of four, and that the cost of just taking care of children is sky high!

Earning $50,000 for a family of four was once considered middle class, but realistically is not enough in the economy of today,and with the taxes and fees that all Americans pay!

And realize that when one says under $50,000, that does not mean everyone is making close to that amount, as many families of four are living on only $30,000 or less for a family, and are wallowing in poverty and deprivation!

The federal government has offered tax breaks to help families pay for college, buy homes, have children, and given wage supplements to the extremely poor.

But for every tax break for lower income tax payers, the wealthy and upper middle class have been given much more lucrative tax advantages, and somehow, that is not a problem for Republican and conservatives!

In other words, if the government helps the rich, and many avoid taxes altogether or pay a very low rate of taxes, that is perfectly fine, a good example of capitalism!

But if the poor or struggling middle class has breaks, we should milk them for all they are worth, and look down on them as lazy, shiftless, lacking in ambition, and punish them for having children, after advocating no abortion rights!

Needless to say, this is the height of hypocrisy by the Republicans and conservatives, but they have no shame in condemning the poor, just as in the Gilded Age, the social philosophy known as Social Darwinism ruled, and has now been revived in modern times without any shame or embarrassment by the hard Right in this country!