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Sunday, July 10, 2005

The truth about taxes

Posted by: Jambo / 11:41 PM

Remember the Bush administration line in their campaign to repeal the estate tax where they talked about family farms being sold to pay the evil "death tax?" Well, unsurprisingly, like most of what we have heard from W, it was a lode of crap. It turns out, according to an article in today's NYT, that only a handful of farm estates are even subject to the tax:
The number of farms on which estate tax is owed when the owners die has fallen by 82 percent since 2000, to just 300 farms, as Congress has more than doubled the threshold at which the tax applies, the Congressional Budget Office said in a report released last week.

All but 27 farmers left enough liquid assets to pay taxes owed, the budget office found, although it hinted that the actual number might be zero. The study examined how much in cash, stocks and bonds these farmers left to pay estate taxes, but the report noted that no data existed on how much life insurance the farmers had put into trusts. Virtually all wealthy farmers own life insurance in trusts, say estate tax lawyers who specialize in working with farmers.

The article doesn't give the amount of the average tax but at least a few of those 300 owe some very minimal amount, maybe as little as a few hundred or a few thousand dollars.

So let's take a look at the three taxes that most people think about; income tax, social security tax, and (thanks to relentless propaganda by W) the estate tax. The estate tax is only paid by the top few wealthiest estates, income tax is slightly progressive with rates going up as income goes up, and social security tax is regressive with the tax starting on the first dollar of income and ending somewhere around $80,000.00 these days. Take a guess, which has W tried to repeal, which he has tried to make less onerous on high income earners, and which he has done absolutely nothing to reduce?

There are thousands of lower and middle class Americans who have been convinced that the only thing keeping them from getting ahead is that they have to pay taxes. They almost all voted for Bush and he has done nothing at all about the taxes they actually pay.

Update: Whoops, I really should read the blog every few hours (and so should you) to see when something new has been posted. Hammer had this story a good 12 hours ago.


But a second opinion never hurts.

By Blogger Hammer, at 9:18 AM  

43% income tax + 39% payroll tax + 10% corporate tax + 4% excise tax + 4% misc. tax = 100% general revenue. If Congress needs more money for general revenue, the US Treasury borrows it and puts it into the general revenue fund.

The general revenue fund is used as Congress's check book to pay all debts the federal government owes.

Take notice: payroll taxes are borrowed money. It has to be re-paid at some future time. That's double taxation. Any other borrowed money has to be re-paid at some future time.

TAXES pays for everything. Nothing else, just taxes. Payroll taxes were never to be used as general revenue. Investing payroll taxes in US Treasury bonds whether marketable or non-marketable was and is flat stupid.

Interest earned on money invested by social security is paid by TAXES.

TAXES have to be raised. Taxes pay all debts owed by the federal government.

The reason I repeat is very simple. The average American is flat ignorant as to what taxes do.

The average American would march on DC if they did know what Congress has done with their money.

Check out the percentages again. If we continue to lose jobs to outsourcing, illegal immigration, etc., who is going to pay the taxes to keep America solvent?

If we keep cutting taxes who is going to pay the debts of America?

If the religious want to mix politics with their beliefs, maybe we should start taxing the churches. That's fair.

The 10% corporate tax as shown is criminally obscene. If our jobs and the corporations move over seas, the wealthy few will have to pay the taxes.

By Blogger 0hio, at 9:14 PM  

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