How Taxes Work...

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Bowfinger

Lifer
Nov 17, 2002
15,776
392
126
Originally posted by: Future Shock
If you believe that everyone has the same opportunity to become CEO, then I suggest you go work a few more years.

Statistically, men who are 6'2"+ make a lot more than men who are 5'8" - just because they are taller and command more respect in meetings and sales calls. This applies across fields and age groups. Statistically speaking, that 5'8" man will NEVER have the same opportunities as the 6'2" man - because he can't create the same overpowering impression during a sales call. Companies know this - for example, to get a job as a salesman for EMC (makes of large computing equipment), you pretty much are required to have a background as a college football player or hockey player, and be over 6'. Just for the physical presence. (BTW - I read that in an interview with their CEO a few years back, they don't even try to hide it).

Then there is the intelligence issue - some of us have it naturally, some of us don't. Can't avoid that, and again, it is hugely limiting of career choices and opportunities if you don't.

Lastly, family connections and money has a HUGE impact, even today. Bill Gates got superrich because his mom was on charity boards in Seattle with the wives of IBM executives - most people cannot get involved in these charities unless you come from a certain social group. Only very rich families can afford to send their children to Harvard, Yale, etc. - and affirmative action and academic scholarships only have a limited number of slots. If you want to get your child into the right PRE-SCHOOL in NYC they require interviews that basically ask for your economic details and social connections (of the parents) as a pre-requisite for getting your child in...and starting up the rich Mahattanite's ladder to success.

We simply DON'T all have the same opportunities, and to pretend otherwise is a lie. Doesn't mean that every year, a small percentage of people WILL migrate up the socioeconomic ladder, through dint of hard work, luck, or inheritance...but it is unfortunately a declining percentage.

Future Shock
QFRT

(Quoted for REAL Truth, not the "Quoted for Truthiness" QFT sound-bite as used earlier.)
 

Jeff7

Lifer
Jan 4, 2001
41,599
19
81
And that, boys and girls, journalists and college instructors, is how the tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up at the table anymore.

They might leave the table? So what, the rich are just going to stop paying taxes? Or simply stop earning enough to qualify as "rich"? Either of those options seems highly unlikely.

Statistically, men who are 6'2"+ make a lot more than men who are 5'8" - just because they are taller and command more respect in meetings and sales calls. This applies across fields and age groups. Statistically speaking, that 5'8" man will NEVER have the same opportunities as the 6'2" man - because he can't create the same overpowering impression during a sales call. Companies know this - for example, to get a job as a salesman for EMC (makes of large computing equipment), you pretty much are required to have a background as a college football player or hockey player, and be over 6'. Just for the physical presence. (BTW - I read that in an interview with their CEO a few years back, they don't even try to hide it).
How about a woman who's only 5' tall? Unfortunately, her chances are probably even less of becoming a CEO. I have read that numerous places - height really helps you get places in the business world.
 

Pacemaker

Golden Member
Jul 13, 2001
1,184
2
0
My issue is not with the rich paying more, but rather with what they consider rich. They really need to bump all the brackets up a bit and increase the tax rate to 50%+ to anything made over 1 million per year. Cause lets face it anything over 1 million is not really needed, but they should still get a portion of it.
 

the Chase

Golden Member
Sep 22, 2005
1,403
0
0
Originally posted by: Pacemaker
My issue is not with the rich paying more, but rather with what they consider rich. They really need to bump all the brackets up a bit and increase the tax rate to 50%+ to anything made over 1 million per year. Cause lets face it anything over 1 million is not really needed, but they should still get a portion of it.

Wow- let's just convert to socialism right away and save the smaller steps.....

The rich(top 10%) should simply stop paying their taxes and let the Government jail them and take their possesions until they revise the tax code to be fairer than it is now. I think if they unified to do this change would come pretty quick....
 

LunarRay

Diamond Member
Mar 2, 2003
9,993
1
76
Originally posted by: brandonbull
Having a flat tax would create a socialist system government. Lower income earners would lose a larger portion of their disposable incomes to the government and more people would depend on the government to maintain the economy.

Well... if you create a flat tax that exempts certain items.. and phases it in on say autos (from 0% to 20% from 15,000$ to 30,000$) and other 'needed' items and full on luxury items it would be progressive enough to work just fine. But, the most regressive of taxes are those that tax petro etc.. to pump into the trust funds... I'd want all tax eliminated and only a flat tax imposed with redistrabution to the states... If the fiscal and monetary policies are made to work then the economy will fund the revenue.... oh.. and move to a more isolated economy - over time..

 

LunarRay

Diamond Member
Mar 2, 2003
9,993
1
76
Originally posted by: Aisengard
An isolated economy? What are you smoking?

Camel wide...

But, the issue is the economy and how best to stimulate it. IMO the creation of manufacturing in the US is the best first step. To do this we'd have to reduce our demand on foreign made products which wouldn't be done by a "Buy American Made Only" slogan. We'd need to abandon treaties like NAFTA and others by making tariffs preclude the entry of non US made goods... Over time not in the morning.
We are simply going to have a world with equal income etc.. this can only serve to reduce the standard of living in the US because we cannot compete in the labor market in an open world economy..

edit: I should add that when a nation has created a market as large as the US can have we really don't need anyone else... We never did need anyone until "one world order" became the game. Demand side economics will produce investment here... give folks jobs that pay enough to consume what we make and investment will flurish here... not outsourcing..


 

TGS

Golden Member
May 3, 2005
1,849
0
0
Originally posted by: pinion9
Well, they we cut medicare/medicaid, welfare, SS....
People should make different choices with their lives. It isn't my fault the median is 45K a year. I know it isn't a reality, but I believe it is unfair that I pay more in taxes than my wife makes, yet we use the same services, etc.

I am at a point of diminishing returns. The more I work, the larger percentage they take. It makes it hardly worth it. It is no incentive to suceed when I know the craphead renter I used to have has 5 kids, doesn't work, smokes like a chimney, and my tax dollars pay for her to live. She is useless as a human being. She is no better than trash and should be treated as such.


Originally posted by: pinion9

Meanwhile some of my scumbag renters were out buying 65" TVs and $5k sofas to go with their minimum wage jobs. It is sickening. Doing away with SS should be first. I have an IRA and 401(k) as does my wife. We take care of our own things and do not depend on handouts.

Originally posted by: pinion9
Originally posted by: Moonbeam

Why put them to all that trouble? Why not, if they can no longer work, just kill them. Come on, you have the mentality to understand that.

As much as I like that idea, Moonbeam....

On a serious note, we simply tell everyone under a certain age that we will no longer be providing them with Social Security benefits. Surely, someone in their 40's will be able to save enough money by the time they are 65. We then calculate how much we owe to the rest of the population that will receive social security, reappropriate money from the welfare program to the social security, and voila! Problem solved

You do realize the problems with future solvency with SS are due to people dipping into the SS funds to pay for pork projects. If we stop using SS as a slush fund, then we can keep it in the black for years to come. The best solution would be to reign in wasteful government spending, until we have our deficit back in over.

Though I'm glad you've run into a handful of people abusing our welfare system and see fit to anecdotally throw everyone getting government assistance into that category.

You want to hear something funny? I make almost a six figure income on a high school education. So how does that bode for needing a degree to make a cushy lifestyle? None the less, during my AF days I qualified as an E-3 for government assistance. I paid almost nothing in taxes, and got everything and more returned. Basically child tax credits put us solidly in the black during refund time. During this time, I would pay my bills and have one hundred to two hundred dollars of flexible money to spend or save. That would be per month, not per paycheck. I for one was glad for the government assistance, which helped a great deal with food costs.

You fail to realize for every one piece of "trash" that you can anecdotally conjure up, there are many more that are using that "breathing room" of government assistance to actually make a difference in their lives. It can make the difference between keeping your head above water, or sinking further into debt.


As for diminishing returns, that is a complete load of bull. Why would any business want to continue to grow if there were no profits to be made past a certain revenue point? I don't understand why you seem to hate the poor so adamantly. I can sympathize with your distain for the people abusing our systems. Though to callously call people trash because they are spending their money in ways you don't see fit is rather childish.

Also, it is *welfare* that is paying these people, not SS. So again I'm not clear on how abolishing SS will solve the problems of welfare abusers. Perhaps you can link that one together for me.
 

pinion9

Banned
May 5, 2005
1,201
0
0
Originally posted by: TGS

Though I'm glad you've run into a handful of people abusing our welfare system and see fit to anecdotally throw everyone getting government assistance into that category.

You fail to realize for every one piece of "trash" that you can anecdotally conjure up, there are many more that are using that "breathing room" of government assistance to actually make a difference in their lives. It can make the difference between keeping your head above water, or sinking further into debt.


As for diminishing returns, that is a complete load of bull. Why would any business want to continue to grow if there were no profits to be made past a certain revenue point?

Also, it is *welfare* that is paying these people, not SS. So again I'm not clear on how abolishing SS will solve the problems of welfare abusers. Perhaps you can link that one together for me.

1. Every person I ever rented to abused the welfare system in some way and spent their money on things they don't need. If you are on government assitance, you should NOT be entitled to things like telephones, cable, etc. So, it may be anecdotal, but is my experience. Not ONE person I have met on public assistance was worth a damn.

2. I said diminishing returns for me. My hourly rate drops quite far after a certain point. I said nothing about corporations.

3. I didn't mean to link SS and welfare. We need to do away with both systems.

EDIT: I see why you thought I linked the two. No, it was sort of a run on thought.
 

TGS

Golden Member
May 3, 2005
1,849
0
0
Originally posted by: pinion9
Originally posted by: TGS

Though I'm glad you've run into a handful of people abusing our welfare system and see fit to anecdotally throw everyone getting government assistance into that category.

You fail to realize for every one piece of "trash" that you can anecdotally conjure up, there are many more that are using that "breathing room" of government assistance to actually make a difference in their lives. It can make the difference between keeping your head above water, or sinking further into debt.


As for diminishing returns, that is a complete load of bull. Why would any business want to continue to grow if there were no profits to be made past a certain revenue point?

Also, it is *welfare* that is paying these people, not SS. So again I'm not clear on how abolishing SS will solve the problems of welfare abusers. Perhaps you can link that one together for me.

1. Every person I ever rented to abused the welfare system in some way and spent their money on things they don't need. If you are on government assitance, you should NOT be entitled to things like telephones, cable, etc. So, it may be anecdotal, but is my experience. Not ONE person I have met on public assistance was worth a damn.

2. I said diminishing returns for me. My hourly rate drops quite far after a certain point. I said nothing about corporations.

3. I didn't mean to link SS and welfare. We need to do away with both systems.

EDIT: I see why you thought I linked the two. No, it was sort of a run on thought.

Luxury items, I can completely agree with. Telephones on the other hand, at least my job required me to have a telephone. To the extent I had to have a recall roster on my person at all times in order to contact personel in the event of an emergency. Telephone services is up in the air depending on what your job requires. I would think that phone services are a practical neccesity in our day and age.

We seem to lack a great deal of personal responsibility and oversight into what our government spends the money on. SS does more than just give money to the elderly. It can give funds to those in disability, or during an unfortunate death. The entire purpose of the government is to help your fellow man. Though to lump again, anecdotal evidence as fact just does not make sense. There will always be people who feel some greater sense of entitlement, this goes for both the rich and the poor. The purpose of government programs should be that everyone is treated as fairly as can be managed.

Welfare when used responsibly provides people an avenue to get from under unforeseen circumstances, which allows them to get back to being a fully independant and productive citizen. When it is abused, you get the people that you are referring too. To give credibility that all welfare reciepents fall into your categorization, is a bit absurd at best. You have to understand that people on welfare or recieving government assistance can and will move up in tax brackets sooner or later just like the rest of us. I only offered up my background to illustrate this point.

I appreciate the clarification on the SS/welfare sidenote as well.
 

LunarRay

Diamond Member
Mar 2, 2003
9,993
1
76
No one wants to help fund the SS and SSI system or their states welfare system until they find themselves in need of it.

As you know, If you become disabled and unable to work you will be glad there is a Social Security system and Medicare to help you.

As far as a Retirement system I think that yes that is NOT a Social Security System and should not be the only means to survive after your working years cease, however, if the economic reality perpetrated by the last few administrations and the FED did what they were 'expected' to do we'd not be in this fix. We'd have manufacturing abounding and jobs a plenty. Jobs that would pay enough for the demand to create more and so on... Until our elected folks make the economy work and abolish desease and find a means to end disability we need SS and Welfare..
 

Jaskalas

Lifer
Jun 23, 2004
33,590
7,651
136
Originally posted by: the Chase
Wow- let's just convert to socialism right away and save the smaller steps.....

The rich(top 10%) should simply stop paying their taxes and let the Government jail them and take their possesions until they revise the tax code to be fairer than it is now. I think if they unified to do this change would come pretty quick....

Don't worry about our slide into socialism, that's been happening for a hundred years now and we aren't about to slow down just get when things start to get interesting.
 

Tom

Lifer
Oct 9, 1999
13,293
1
76
Originally posted by: pinion9
Originally posted by: Moonbeam
Originally posted by: HombrePequeno
Originally posted by: tw1164
Originally posted by: HombrePequeno
By your argument, the government punishes you for owning property. I mean, they make you pay property tax don't they? Why should owners of property have to pay tax when renters don't?

Landlords don't pay taxes, tenants do. I personally think that the property taxes are the most unfair type of taxes. As you grow old your income generally decreases but your property values increase (as do the tax rates). There are many retirees who struggle to pay their property taxes. When they fail to pay, the government comes and takes your home and sells it (often below "Fair Market Value") taking their money off the top and leaving you w/ the pennies that remain. You never really own your property/home you only lease it from the government.

Technically they both pay the taxes. The landlord can't just add on the entire tax to everyone's rent otherwise he wouldn't get an optimal amount of people living in his houses/apartments. So the landlord has to charge a lower rate (adding the tax on top) and the tenant has to pay a higher rate overall. That's not really what I was getting at with my previous argument, however. Taxes generally aren't in place for punishment, they're just used to provide revenue.

You've actually brought up a controversial point about whether to lock in property taxes to the amount you bought it at or whether to adjust it with the market value of the house. I'm personally fine with adjusting it with the value of the house. You may say that it's not fair because older people would start paying more as the value of the house rises but I think that argument isn't very good. They can always sell the house and use that money to move into a lower priced house. If the value of your house is increasing so much that it's hard for you to pay the taxes, I would think it would be profitable enough for you to move into a cheaper neighborhood.

Why put them to all that trouble? Why not, if they can no longer work, just kill them. Come on, you have the mentality to understand that.

As much as I like that idea, Moonbeam....

On a serious note, we simply tell everyone under a certain age that we will no longer be providing them with Social Security benefits. Surely, someone in their 40's will be able to save enough money by the time they are 65. We then calculate how much we owe to the rest of the population that will receive social security, reappropriate money from the welfare program to the social security, and voila! Problem solved


I don't like paying for a fire department to protect your rental property, or the FDIC that protects your money in the bank.

Or the water and sewer system either.

I can get along without those things, instead of having the government subsidize your wealth with my tax dollars, you should pay for your own sewer and water system.

In fact, why don't we turn the USA into the Sudan, you'd like their plan for the poor and the weak.


 
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