Inequality graphics

[The Rabbi]

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[SteadyMercury]

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[Dot Com]

New IRS Report Demonstrates yet Another Reason Income Inequality Persists - Senator Bernie Sanders of Vermont

The IRS report confirms that the best-off taxpayers (those with incomes of $200,000 or more) continue to find legal ways to make their federal tax obligation $0. Worse, the report finds that this is occurring at a pace not seen for decades.

From the report’s first publication in 1977 through 2000, the number of high-income Americans paying no tax never exceeded 3,000. But the past four years have seen an explosion of high-end tax avoidance: in each of these years, the number of zero-tax Americans found in this report has exceeded 30,000.

 

[sameech]

New IRS Report Demonstrates yet Another Reason Income Inequality Persists - Senator Bernie Sanders of Vermont

The IRS report confirms that the best-off taxpayers (those with incomes of $200,000 or more) continue to find legal ways to make their federal tax obligation $0. Worse, the report finds that this is occurring at a pace not seen for decades.

From the report’s first publication in 1977 through 2000, the number of high-income Americans paying no tax never exceeded 3,000. But the past four years have seen an explosion of high-end tax avoidance: in each of these years, the number of zero-tax Americans found in this report has exceeded 30,000.

The rich aren't getting richer off low-interest tax free bonds, and it benefits society to have as much of our national debt held as domestically as possible. As for the deductions, the home mortgage interest deduction disproportionately benefits the wealthy, as do most itemized deductions. For average Americans, the standard deduction is the better option so they do not itemize at all. The same argument that the wealthy benefit more from itemization implicitly includes that most Americans do better under their circumstances not itemizing.

 

[The Rabbi]

New IRS Report Demonstrates yet Another Reason Income Inequality Persists - Senator Bernie Sanders of Vermont

The IRS report confirms that the best-off taxpayers (those with incomes of $200,000 or more) continue to find legal ways to make their federal tax obligation $0. Worse, the report finds that this is occurring at a pace not seen for decades.

From the report’s first publication in 1977 through 2000, the number of high-income Americans paying no tax never exceeded 3,000. But the past four years have seen an explosion of high-end tax avoidance: in each of these years, the number of zero-tax Americans found in this report has exceeded 30,000.

The rich aren't getting richer off low-interest tax free bonds, and it benefits society to have as much of our national debt held as domestically as possible. As for the deductions, the home mortgage interest deduction disproportionately benefits the wealthy, as do most itemized deductions. For average Americans, the standard deduction is the better option so they do not itemize at all. The same argument that the wealthy benefit more from itemization implicitly includes that most Americans do better under their circumstances not itemizing.

When you get social engineering in the tax code you get loopholes. When you have loopholes those with the biggest incentive to exploit them will.
We need a flat tax on every dollar over, say, 30k earned, no exemptions, no exceptions.

 

[Stephanie]

Here's the only graphics you'll need once these stupid people called, liberals/progressives get done make US ALL EQUAL...of course that will EXCLUDE all their masters they vote for in Guberment like those in THE IRS

 

[sameech]

New IRS Report Demonstrates yet Another Reason Income Inequality Persists - Senator Bernie Sanders of Vermont

The rich aren't getting richer off low-interest tax free bonds, and it benefits society to have as much of our national debt held as domestically as possible. As for the deductions, the home mortgage interest deduction disproportionately benefits the wealthy, as do most itemized deductions. For average Americans, the standard deduction is the better option so they do not itemize at all. The same argument that the wealthy benefit more from itemization implicitly includes that most Americans do better under their circumstances not itemizing.

When you get social engineering in the tax code you get loopholes. When you have loopholes those with the biggest incentive to exploit them will.
We need a flat tax on every dollar over, say, 30k earned, no exemptions, no exceptions.

The people who exploit the tax loopholes the worst are corporations. Unfortunately, in my experience, people who are for flat taxes obsess more about individuals than they do the real culprits--Wall Street et als. Flat taxes on individuals will only work if corporations are reigned in. Otherwise the individual rate would be so high that it would be punitive.

 

[EconomicNudity]

The rich aren't getting richer off low-interest tax free bonds, and it benefits society to have as much of our national debt held as domestically as possible. As for the deductions, the home mortgage interest deduction disproportionately benefits the wealthy, as do most itemized deductions. For average Americans, the standard deduction is the better option so they do not itemize at all. The same argument that the wealthy benefit more from itemization implicitly includes that most Americans do better under their circumstances not itemizing.

When you get social engineering in the tax code you get loopholes. When you have loopholes those with the biggest incentive to exploit them will.
We need a flat tax on every dollar over, say, 30k earned, no exemptions, no exceptions.

The people who exploit the tax loopholes the worst are corporations. Unfortunately, in my experience, people who are for flat taxes obsess more about individuals than they do the real culprits--Wall Street et als. Flat taxes on individuals will only work if corporations are reigned in. Otherwise the individual rate would be so high that it would be punitive.

It's interesting talking about the "loopholes". Name one?

Most likely you will name a deduction or credit... What is a loophole anyway? The truth is there really aren't any. Everyone plays by the same exact rules. It like saying Tiger is taking advantage of a loophole when he drops his ball off of the cart path in a golf tournament. EVERYONE gets to use that rule when in play.

I challenge you to tell me a "loophole".

def. - an ambiguity or inadequacy in the law or a set of rules.

I am a tax CPA that has prepared returns strictly for entrepreneurs and their businesses with one of the largest firms in the country. I've seen plenty of 7 and 8 digit W-2's and there aren't any loopholes. With effective holistic planning you can limit your future tax burden. You want to go from 36% to 31%. It's possible depending on your circumstances.

But for many wealthy with W-2 income their is little that can be done. With AMT it is tough, especially as it has been clawed back. With the new taxes on net investment income it has gotten more complex. With the 1 million words, it was already complex enough.

But to act as though these "loopholes" are going to get someone from 40% to 10% is laughable. They are sure thankful for the loopholes writing $2 million checks to the IRS!

 

[sameech]

When you get social engineering in the tax code you get loopholes. When you have loopholes those with the biggest incentive to exploit them will.
We need a flat tax on every dollar over, say, 30k earned, no exemptions, no exceptions.

The people who exploit the tax loopholes the worst are corporations. Unfortunately, in my experience, people who are for flat taxes obsess more about individuals than they do the real culprits--Wall Street et als. Flat taxes on individuals will only work if corporations are reigned in. Otherwise the individual rate would be so high that it would be punitive.

It's interesting talking about the "loopholes". Name one?

Most likely you will name a deduction or credit... What is a loophole anyway? The truth is there really aren't any. Everyone plays by the same exact rules. It like saying Tiger is taking advantage of a loophole when he drops his ball off of the cart path in a golf tournament. EVERYONE gets to use that rule when in play.

I challenge you to tell me a "loophole".

def. - an ambiguity or inadequacy in the law or a set of rules.

I am a tax CPA that has prepared returns strictly for entrepreneurs and their businesses with one of the largest firms in the country. I've seen plenty of 7 and 8 digit W-2's and there aren't any loopholes. With effective holistic planning you can limit your future tax burden. You want to go from 36% to 31%. It's possible depending on your circumstances.

But for many wealthy with W-2 income their is little that can be done. With AMT it is tough, especially as it has been clawed back. With the new taxes on net investment income it has gotten more complex. With the 1 million words, it was already complex enough.

But to act as though these "loopholes" are going to get someone from 40% to 10% is laughable. They are sure thankful for the loopholes writing $2 million checks to the IRS!

1) off-shoring profits
2) allowing venture capitalists like Mitt Romney to avoid double taxation by treating income as pass-through.
3) the entire accrual accounting method is one giant fiasco of a system that I am sure you love because it takes the FBI hiring an army of accountants just to scratch the surface in scams like Enron.

 

[The Rabbi]

When you get social engineering in the tax code you get loopholes. When you have loopholes those with the biggest incentive to exploit them will.
We need a flat tax on every dollar over, say, 30k earned, no exemptions, no exceptions.

The people who exploit the tax loopholes the worst are corporations. Unfortunately, in my experience, people who are for flat taxes obsess more about individuals than they do the real culprits--Wall Street et als. Flat taxes on individuals will only work if corporations are reigned in. Otherwise the individual rate would be so high that it would be punitive.

It's interesting talking about the "loopholes". Name one?

Most likely you will name a deduction or credit... What is a loophole anyway? The truth is there really aren't any. Everyone plays by the same exact rules. It like saying Tiger is taking advantage of a loophole when he drops his ball off of the cart path in a golf tournament. EVERYONE gets to use that rule when in play.

I challenge you to tell me a "loophole".

def. - an ambiguity or inadequacy in the law or a set of rules.

I am a tax CPA that has prepared returns strictly for entrepreneurs and their businesses with one of the largest firms in the country. I've seen plenty of 7 and 8 digit W-2's and there aren't any loopholes. With effective holistic planning you can limit your future tax burden. You want to go from 36% to 31%. It's possible depending on your circumstances.

But for many wealthy with W-2 income their is little that can be done. With AMT it is tough, especially as it has been clawed back. With the new taxes on net investment income it has gotten more complex. With the 1 million words, it was already complex enough.

But to act as though these "loopholes" are going to get someone from 40% to 10% is laughable. They are sure thankful for the loopholes writing $2 million checks to the IRS!

Your post is bullshit and I am certain you are lying.
But you do make the case that a flat tax, every dollar earned no matter how above a certain number gets taxed exactly the same. Simplicity is fairness.

 

[EconomicNudity]

The people who exploit the tax loopholes the worst are corporations. Unfortunately, in my experience, people who are for flat taxes obsess more about individuals than they do the real culprits--Wall Street et als. Flat taxes on individuals will only work if corporations are reigned in. Otherwise the individual rate would be so high that it would be punitive.

It's interesting talking about the "loopholes". Name one?

Most likely you will name a deduction or credit... What is a loophole anyway? The truth is there really aren't any. Everyone plays by the same exact rules. It like saying Tiger is taking advantage of a loophole when he drops his ball off of the cart path in a golf tournament. EVERYONE gets to use that rule when in play.

I challenge you to tell me a "loophole".

def. - an ambiguity or inadequacy in the law or a set of rules.

I am a tax CPA that has prepared returns strictly for entrepreneurs and their businesses with one of the largest firms in the country. I've seen plenty of 7 and 8 digit W-2's and there aren't any loopholes. With effective holistic planning you can limit your future tax burden. You want to go from 36% to 31%. It's possible depending on your circumstances.

But for many wealthy with W-2 income their is little that can be done. With AMT it is tough, especially as it has been clawed back. With the new taxes on net investment income it has gotten more complex. With the 1 million words, it was already complex enough.

But to act as though these "loopholes" are going to get someone from 40% to 10% is laughable. They are sure thankful for the loopholes writing $2 million checks to the IRS!

Your post is bullshit and I am certain you are lying.
But you do make the case that a flat tax, every dollar earned no matter how above a certain number gets taxed exactly the same. Simplicity is fairness.

Lying about what?

The tax code is too complex and I would give up my job in a heartbeat to make it one page long. Sameech is simply quoting what he has heard some talking heads say. First, just by taking something offshore doesn't make it immediately less burdensome for the business and owners. International taxation increases complexity and reporting requirements for both the business and individual shareholders. Second, Sameech does not mean pass-throughs as these are primarily S corporations and partnerships. What he is referring to are the carried interest rules which he must be assuming these are ALWAYS windfalls... This is not the case.

I'm glad the Rabbi is in TN as to make this easy. As far as $20 million of income in TN - the owner has a couple options if they are an S corp, less as a partnership. As an S corp they could take the income as either a distribution, S corp income, or a salary. They will take it as salary 99.9% of the time. $20 million as an S corp income will be subject to 6.5% TN excise tax as well as self-employment income. The portion not taken as SE income will be exempt from SE tax but subject to the 6% Hall Tax. As W-2 wages, this is deductible from the S corp. Also, he only pays Social Security up to $117,000; the rest is only subject to Medicare at 1.45%. Therefore, it comes down to the additional income taxed above $117k... 1.45% or 6% or 6.5%. You will choose to be taxed at 1.45% every day.

He still pays federal income tax! He has just reduced some of his state or payroll tax burden. Unless someone is making all income off capital gains (which has increased) there is little that can be done to get these average rates down from 40% to even 30%. But you have to consider the value of strategic planning to save that 5%. It is still worth it over time... But it is not as egregious as many make it out to be... IRS tables show that.

 

[The Rabbi]

TN has no state income tax, other than the Hall Tax.
/fail.

 

[DGS49]

Yes, Obama "inherited" a recession. The normal pattern following a recession is that within 12-18 months, there is a resurgence that puts everyone back to work, and then some.

Only twice in the 20th century has this pattern not occurred, Roosevelt and Obama. the difference with Barry is that he has the entire news media flacking for him and his failed policies. Hence, it is trumpeted as fantastic news when the economy picks up 200k jobs in a month - about what it takes to make room for the new people coming into the workforce, but doing nothing to reduce REAL unemployment and under-employment.

QED.

 

[EconomicNudity]

TN has no state income tax, other than the Hall Tax.
/fail.

You either are not willing to grasp a new concept as your quote assists me in making my point or you just cannot grasp the concept. I think it is the former. I don't think I could have broke it down much simpler but here's a try...

When an S Corp has taxable income, it can either be kept in the company and given to the owners as both income and a distribution subject to both the Franchise and Excise Tax (0.25% and 6.5%, respectively) on the undistributed income and the TN Hall Tax on the the distributed income.

In TN, instead of keeping it in the company and being tax at 6% and 6.5%, the owners choose to take the income as wages subject to 6.2% Soc. Sec. up to $117k and 1.45% on the amount thereafter generating savings on the margin of TN tax (6% or 6.5%) compared to the SS tax (1.45%).

 

[EconomicNudity]

Yes, Obama "inherited" a recession. The normal pattern following a recession is that within 12-18 months, there is a resurgence that puts everyone back to work, and then some.

Only twice in the 20th century has this pattern not occurred, Roosevelt and Obama. the difference with Barry is that he has the entire news media flacking for him and his failed policies. Hence, it is trumpeted as fantastic news when the economy picks up 200k jobs in a month - about what it takes to make room for the new people coming into the workforce, but doing nothing to reduce REAL unemployment and under-employment.

QED.

Isn't it amazing that the media cannot call this for what it is? 5 years later and we still are excited when economic releases point to "signs of strengthening". The pain should have been over long ago...

Stimulus.