So you’re making more than that? Just getting by and struggling to survive?
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So you’re making more than that? Just getting by and struggling to survive?
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So as I understand down there you can deduct interest on mortgage payments but then pay capitol gains on proceeds of selling your house, the whole amount or just a portion ?
Neither one happens up here on a principal residence
lotta people up here are struggling with short term mortgages coming due/ no where to live super high house prices
Well its not really a long term gain if your asset just held its value against inflation is it? Short term gains (held less than 1 year) should be (and are) taxed the same as wage and interest income. And I would argue for ss & medicare tax to apply also. Thats apples to apples.Quote:
Originally Posted by Hopeless Sinner
But long term gains should not be taxed like ordinary income. Maybe change the definition of a LT gain to greater than 5 years instead of greater than 1 year.
Is not "Struggling" something you aspire to? Or is "Struggling" something you wear like a badge of courage?Quote:
Originally Posted by MagnificentUnicorn
Just a portion of a residence gain could be subject to tax in US. section 121 exclusion. 250k gain excluded per person.Quote:
Originally Posted by XXX-er
And as far as interest deductions - unless you have alot of charity or health expenses to itemize most people no longer deduct mortgage interest. You still can, its just more rare than pre salt tax cap.
Quote:
Originally Posted by Master of Energy
Whatever your reasoning is it's still special and favorable treatment for the owners of capital vs ordinary income. And if the long term gain turns into a long term loss, it's still protected by being a deductible loss. Owners of capital get protection whether the investment gains or loses.
In my estimation owners of capital have a pretty favorable treatment by the tax code and the results are what we see in the .1% getting richer by the minute and wage earners competing over the dwindling scraps left behind.
See this mindset is why the ruling class laughs at us. Small business owners who write living wage paychecks are not the enemy. Capital has to get paid. Is the capital not distributed widely enough? Probably. Are payroll taxes and other semi-hidden fees/taxes regressive? Yeah. Is administrative overhead favoring larger and larger business? Sure.Quote:
In my estimation owners of capital have a pretty favorable treatment by the tax code and the results are what we see in the .1% getting richer by the minute and wage earners competing over the dwindling scraps left behind.
If you want to go on a public policy rant, there are a lot of easier piñatas to swing at other than income tax paid by however you want to define the middle income brackets.
And it is not just income taxes.
Property taxes here just took a big jump, for some, 50%.
But the wealthy and corporations got a reduction.
And then there is this:
Quote:
BOZEMAN- When Bozeman resident Deborah Newville opened her latest tax statement, she was shocked. At first.
“It threw me such a curveball,” she said.
After the shock wore off, worry set in.
“I don’t know, it’s a question mark," she said, adding, “We are now at $12,000 for the year, so approximately a thousand a month in property taxes."
Across the state, many Montana property owners are in the same boat, trying to find out why their property taxes increased so much, and how they're going to pay them.
Not everyone is in the same boat. An MTN analysis of property-tax records showed that one residence owned by Gov. Greg Gianforte in Helena actually saw a decrease in property taxes this year, unlike properties owned by others in the same neighborhood. Another of the governor's properties in Bozeman saw a smaller increase than neighboring properties, largely because of its agriculture designation while his neighbors saw tax hikes.
Deborah couldn’t believe the increase on her Bozeman property, so she started asking questions.
“Our immediate neighbor next door, which happens to be the governor, theirs seemed to go up just a bit, maybe a couple thousand. Whereas ours went up $5,000.”
What is the ag tax exemption?
Gianforte purchased his 11-acre property on Manley Road in the 1990s.
A spokesperson for his office, said the governor and his wife, Susan Gianforte, own land in ag production there, saying the land rotates between irrigated barley and alfalfa. It’s also used to board horses and mules.
The governor’s property taxes increased by 19% because of the Montana agriculture exemption.
I’m not sure, I’ve never struggled with anything really, I’ve been really fortunate that way. I’ve prioritized my life around experiences not wealth accumulation.Quote:
Originally Posted by Name Redacted
Look, I get it, you don’t consider yourself wealthy even though it sounds like you make more money than 80% of the people in the country. You’re not going to get any sympathy from the middle class, you’ll only get pity if you whine about struggling and your taxes.
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As it is LTCG tax stays the same whether inflation is 1%, 10%, or negative. If you want to keep it, index it. And while we're at it, let people with fixed income deduct the rate of inflation from their pension income.
Anyway, I don't care how we fix the tax system as long as we fix it to help the people who need help the most, not the least.
Tax breaks for everyone!
You guys should bitch about payroll tax today. When you are done with that, maybe expand on how we shift the burden of inflation to the government without that itself being inflationary.
I'd be happy with removing the income cap on social security, but not increasing the max payout (outside of COLA's). Everybody wants to tax the rich until its time to put rubber to the road.
I came in owing a grand. I'll take that over a refund honestly.
I’d be happy if people that make under $50k weren’t taxed(a lot don’t end up paying much if any income tax) and everyone else paid a flat rate with no exemptions.
You could set the no tax limit somewhere a bit lower or higher after some discussion. It should be based solely on individual earnings. There shouldn’t be breaks for dependents, head of household or being married.
It wouldn’t matter to me, I’m single and make more. I’d really like to see the highest earners actually pay their share.
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"I pay what I owe.
Tomorrow I will wire transfer to the IRS
$288,000,000.00
This country has done so much for me, I’m proud to pay my taxes every single year.
Tag a former president that you know doesn’t"
https://twitter.com/mcuban/status/1779573824318521840
How much do you think the average $50K W2 earner pays in taxes and fees other than federal income tax?
How much? Let us know, or is this a quiz?Quote:
Originally Posted by Foggy_Goggles
Everyone should pay SS and Medicare taxes.
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I don't know but I think its a lot. Gas, sales, property, vehicle reg., licenses, entrance fees and so on.
FICA is about 25% of Federal Government Revenue and it is only paid on W2 income. So think about that when you a focused on Income Tax which is about 40% of Revenue.
Its a lot more complex than "rich people should pay more tax and do it with a smile". Perhaps we get what we deserve but we've basically accepted an unacceptable decree of incompetence from the federal government. This is where we should look in order to make progress. Accepts its all, "old vs. orange" "left vs. right" "right vs. poor".
But it's your government. Get involved and make change? ...yeah, I know the answer.Quote:
Originally Posted by Foggy_Goggles
My wife is self employed so she pays both employer and employee share. I split the quarterly estimated payments up and pay monthly with a reminder in my phone. It's the least hassle and doesn't sting as bad as making four larger payments. We still usually owe a couple grand at the end of the year if she has a good year.
Dude um yeah, I own a very blue collar business, and I am the one getting his hands dirty every fucking day to make the money. So if I'm wealthy because of it, so be it. I'll not apologize for that shit. Up until the last few years I was making far less money and working a lot more than most people. Guarantee my effective tax rate is higher than most people too.Quote:
Originally Posted by MagnificentUnicorn
With ST interest rates paying 5+%, I would keep my money as long as possible. Paying estimates early doesn't provide any benefit.Quote:
Originally Posted by riser4
I don’t think the rich should pay a higher percentage of their income(any source) they should just pay period. If you make more than a certain amount you pay a flat rate regardless, no loopholes, exemptions etc.Quote:
Originally Posted by Foggy_Goggles
It’s not the government that’s incompetent, it’s the elected politicians that pander to lobbyists and vote for their districts/states at the expense of everyone else.
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Between this and the what is too much risk thread, looks like we’re proving the old adage of three certainties in life, death, taxes and arguing in circles on the web.
Agree re FICA--tax every dollar of every type of income. As it is, it's a regressive tax.Quote:
Originally Posted by Foggy_Goggles
Re govt incompetence--sure there are plenty of examples, but consider Medicare. Administrative costs are 5%, 95% is payments to providers, including Pharma. Private health insurance--administrative costs and profits average 25%, 75% goes to providers. One can argue that both are paying too much to providers, but at least in terms of efficiency and competence the govt is doing pretty well. Yes, some people scam the system but the govt is pretty good at catching them. (That's because medicare scammers are small fry, unlike the big fish scammers who get buildings named after themselves.)
I’m a fan of the flat tax. It would cut out so much BS and while it’s fair to argue that it could unfairly impact low income earners, the flip side is the wealthy would end up paying way more than they do now due to so many loopholes. It would overall be a huge net positive for society. Where would we set that line? I’m not sure but I think 10-15% is a common proposal. This would also coincide with less sales tax (or none on essential items), which already hurts low income earners way more.Quote:
Originally Posted by MagnificentUnicorn
Seems like a flat tax that only starts at a certain income threshold would be the ticket?Quote:
Originally Posted by TahoeJ
Yes this or just provide a large standard deduction and that’s the only deduction you get. Tax all sources the same, capital gain or income. Also redo the AMT to tax people who take out “loans” against their assets to fund their life I.e. Jeff Bezos. If your assets exceed $10m then you should not be able to avoid taxes by living on loans that will never be paid back until you are dead.Quote:
Originally Posted by skaredshtles
Seems like a tax on financial transactions would also be some low-hanging fruit. Every credit card transaction, stock/bond/mutual fund/ETF transaction?Quote:
Originally Posted by neufox47
Disclaimer: I've not give much thought to these suggestions. :D
That figure will vary quite a bit, state by state. Isn't FICA a combination of employee & employer contributions.Quote:
Originally Posted by Foggy_Goggles
Quote:
For both of them, the current Social Security and Medicare tax rates are 6.2% and 1.45%, respectively. So each party – employee and employer – pays 7.65% of their income, for a total FICA contribution of 15.3%. To calculate your FICA tax burden, you can multiply your gross pay by 7.65%.
Other than the Fed and State requires them for 1099 income.Quote:
With ST interest rates paying 5+%, I would keep my money as long as possible. Paying estimates early doesn't provide any benefit.
Quote:
Who must pay estimated tax. Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.
Regardless of what should or shouldn't happen from a tax policy standpoint, I think the US government is going to need to raise taxes pretty drastically to service debt at some point in the not too distant future.
Probably so. Cutting spending will not do it alone.Quote:
Originally Posted by Kevo
That’s why I would propose no income tax for low income people. We just need to decide what threshold that would be. Most households that have an income lower than $50k don’t pay much if any income tax as it is.Quote:
Originally Posted by TahoeJ
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No deductions for the people that make over say $50-60k household income. Of course just not taxing these folks would be easierQuote:
Originally Posted by neufox47
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I didn't say don't pay them. the poster I quoted said he pays them monthly instead of quarterly. That is stupidQuote:
Originally Posted by Bunion 2020
Missed that. It is stupid.
Quote:
Originally Posted by Master of Energy
There are other benefits besides money. It reduces our stress levels. And when we started doing it, interest rates were basically 0. It is worth another look, but my sanity is worth a lot. It avoids IRS penalties and having to nail down a bunch of cash. Once the IRS has it, we can't spend it on something else. I spose I could open a money market account somewhere, pay into that monthly and pay the taxes from there. I need a roundtoit to accomplish that. Got a spare roundtoit?Quote:
Originally Posted by Master of Energy
Sure, and then the post office will issue a stamp memorializing the baby boomers as the most selfish greedy assholes ever to walk the earth.Quote:
Originally Posted by Kevo
I mean, why raise taxes when you can just magically reduce debt via inflation and also send rich people's asset values sky high? That's been the underlying basis for the American economy ever since the Reagan era. Who's going to raise taxes? The person who never wants to be elected again? Fat chance.
Taxes will go up if the GOP is reduced to a rump party. Until then, it is not happening. It is an actual GOP policy to put everything on credit and keep the nation hovering on the edge of bankruptcy. It's a well documented political strategy euphemistically called "the two Santas strategy", brought to you by the same psychopaths who still push the "trickle down theory" of tax policy. Look it up.
If you have a brokerage account somewhere (for retirement, perhaps?) it should be super-simple to get a MM account rolling...Quote:
Originally Posted by riser4
Cutting spending??? OMG that is so funny. Are you here all week?Quote:
Originally Posted by Bunion 2020
So did your accountant shed any light?? We're in the same boat. Both have been in the same jobs 15+ years, same house for over a decade, same fucking EVERYTHING. Every year, we get a modest refund, a couple grand usually. THIS year, despite nothing changing, not only are we not getting a refund, but we owe. And not only do we owe, which has never itself happened, but we owe close to 4 grand?!?Quote:
Originally Posted by BC.