Not only do these people pay NO income tax, many realize a net gain with "refundable" tax credits. It's ridiculous. It's blatant wealth redistribution, and it's been going on for decades.
I can't blame young parents. Free money? Who's going to walk away from free money when your kids need new coats, and the heating bill is double what it was last March?
It's the same thing with our retired people. It doesn't take too many years before you're taking out WAY more than you ever contributed. Free money, but who's going to turn it down when the price of your prescriptions has gone WAY up, and property taxes increased another 10%?
The SOBs have slowly created an entitlement society DEPENDENT upon government largesse.
Do young people have the guts to walk away from their yearly $4,000 to $5,000 windfall? Do older folks have the stones to reinvest a portion of their social security (or government pension) for the next generation? Do ALL OF US working Americans have the courage and the will to touch a lighted match to the tax code, and turn off the welfare spigot?
Like health care, a fix of the tax code would require a Congress that doesn't try to fix things with an even more complex and larger tax code. There's been a lot of talk about a flat "universal" tax...but NOT ONE proposal has actually been for a real flat universal tax.
Consumption taxes have been mentioned, but like sales taxes, they are regressive taxes. And, before any one even bothers with tax reformation, they must first reform the NLRA and IRS treatment sof "employment"...which they are not going to do.
The situation is this: Today, per the chart in the article, we are at 35% or so folks paying no taxes at all. When it reaches 51%, the tipping point, we will be forever in a one party political system...and if you've been paying attention you should gather that is exactly what some of our leaders, right and left, want with their various tilted redistribution schemes.
It isn't the folks using social security who will tip the balance, it will be the ones earning a living at reduced wages whilst competing with totalitarian regimes or impoverished states where the wage is under 10% of what we used to earn here. Many of us at the social security age began putting in to it when the Dow was under 1000, today it breaches 10000, so the argument about taking out more than put in is crap when adjucted for value "invested" that has been spent as the government went along, not invested at all except for non-negotiable IOU's to the fund.
As we offshore the means to production, we become a service economy. Even a dirt farmer today can barely scrape by in this market place.
BTW...even with social security, a pension and a 401K I still pay income taxes. I do get a nominal 3 figure refund from the 20% withholding taxes held back. I have not, yet, reached the magic zero tax brackets...and I am hardly what anyone would call "rich."
Aridog, I wasn't picking on you. I know you've worked hard all of your life, and you deserve to enjoy the fruits of your labors. My folks are both retired, and they pay a boatload of taxes every year, too. They are decidedly NOT rich.
However, that's not the case with millions of people, and if we continue down this road, the current system is unsustainable.
Lady Red...I know you weren't aiming at me. My point is that there are myraid things to be fixed in NLRB and IRS code where "deductions" become a game not an realistic cost of living expense....and "employment" is loosely defined (being nice about it). An honest flat tax, similar to the concept of "tithing" would be fair, but it will never happen. Too many votes to lose.
Not only do these people pay NO income tax, many realize a net gain with "refundable" tax credits. It's ridiculous. It's blatant wealth redistribution, and it's been going on for decades.
ReplyDeleteI can't blame young parents. Free money? Who's going to walk away from free money when your kids need new coats, and the heating bill is double what it was last March?
It's the same thing with our retired people. It doesn't take too many years before you're taking out WAY more than you ever contributed. Free money, but who's going to turn it down when the price of your prescriptions has gone WAY up, and property taxes increased another 10%?
The SOBs have slowly created an entitlement society DEPENDENT upon government largesse.
Do young people have the guts to walk away from their yearly $4,000 to $5,000 windfall? Do older folks have the stones to reinvest a portion of their social security (or government pension) for the next generation? Do ALL OF US working Americans have the courage and the will to touch a lighted match to the tax code, and turn off the welfare spigot?
We'll find out. Soon, would be my guess.
Like health care, a fix of the tax code would require a Congress that doesn't try to fix things with an even more complex and larger tax code. There's been a lot of talk about a flat "universal" tax...but NOT ONE proposal has actually been for a real flat universal tax.
ReplyDeleteConsumption taxes have been mentioned, but like sales taxes, they are regressive taxes. And, before any one even bothers with tax reformation, they must first reform the NLRA and IRS treatment sof "employment"...which they are not going to do.
The situation is this: Today, per the chart in the article, we are at 35% or so folks paying no taxes at all. When it reaches 51%, the tipping point, we will be forever in a one party political system...and if you've been paying attention you should gather that is exactly what some of our leaders, right and left, want with their various tilted redistribution schemes.
It isn't the folks using social security who will tip the balance, it will be the ones earning a living at reduced wages whilst competing with totalitarian regimes or impoverished states where the wage is under 10% of what we used to earn here. Many of us at the social security age began putting in to it when the Dow was under 1000, today it breaches 10000, so the argument about taking out more than put in is crap when adjucted for value "invested" that has been spent as the government went along, not invested at all except for non-negotiable IOU's to the fund.
As we offshore the means to production, we become a service economy. Even a dirt farmer today can barely scrape by in this market place.
BTW...even with social security, a pension and a 401K I still pay income taxes. I do get a nominal 3 figure refund from the 20% withholding taxes held back. I have not, yet, reached the magic zero tax brackets...and I am hardly what anyone would call "rich."
ReplyDeleteAridog, I wasn't picking on you. I know you've worked hard all of your life, and you deserve to enjoy the fruits of your labors. My folks are both retired, and they pay a boatload of taxes every year, too. They are decidedly NOT rich.
ReplyDeleteHowever, that's not the case with millions of people, and if we continue down this road, the current system is unsustainable.
Lady Red...I know you weren't aiming at me. My point is that there are myraid things to be fixed in NLRB and IRS code where "deductions" become a game not an realistic cost of living expense....and "employment" is loosely defined (being nice about it). An honest flat tax, similar to the concept of "tithing" would be fair, but it will never happen. Too many votes to lose.
ReplyDeleteI'd be all for an equitable flat tax, but you're right; it'll never happen. :(
ReplyDelete