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Post by JOCAZTEC on Apr 30, 2011 7:25:18 GMT -8
Windfall Profits Tax is not a loophole for oil companies. What special tax break do the oil companies receive?
The facts are all the tax loopholes favor the governments. Remember way before Diane Feinstein, happily, passed the law that eliminated the medicare wage limit and made all wages and ESOP stock grants subject to the medicare tax, as an employee, you would look forward to the day in the year that you finally broke above the social security and medicare wage limt and enjoy what government employees receive all year long, wages not subject to FICA withholding? You could pay down your credit cards or buy a piece of needed furniture. Well, if an employee works for two employers in one calendar year, and passes the current social security wage level with the first employer, any social security tax withheld by the second employer is refunded on the employee's 1040 when filed. Here's the loophole that favors the government. The second employer's tax payment on the matching social security (yeah younguns, the FICA tax withheld in your wage is only HALF of the tax--the employer pays the other half...politics) is NOT refunded.
Let's talk capital gains tax. You had better lose before you win. You cannot carry back a capital loss to offset capital gains in the previous year. This is devastating to investors who can pay more in Federal capital gains taxes and State ordinary income taxes than the entire net gain over a two years or more.
The tax rate for people making more than $33,000 a year is above fifty percent...if you add it up.
What is rotten is that they are now measuring tax rates on gross incomes and not taxable incomes which have rates that are off the charts.
HAM
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Post by aztecwin on Apr 30, 2011 7:38:43 GMT -8
Windfall Profits Tax is not a loophole for oil companies. What special tax break do the oil companies receive? The facts are all the tax loopholes favor the governments. Remember way before Diane Feinstein, happily, passed the law that eliminated the medicare wage limit and made all wages and ESOP stock grants subject to the medicare tax, as an employee, you would look forward to the day in the year that you finally broke above the social security and medicare wage limt and enjoy what government employees receive all year long, wages not subject to FICA withholding? You could pay down your credit cards or buy a piece of needed furniture. Well, if an employee works for two employers in one calendar year, and passes the current social security wage level with the first employer, any social security tax withheld by the second employer is refunded on the employee's 1040 when filed. Here's the loophole that favors the government. The second employer's tax payment on the matching social security (yeah younguns, the FICA tax withheld in your wage is only HALF of the tax--the employer pays the other half...politics) is NOT refunded. Let's talk capital gains tax. You had better lose before you win. You cannot carry back a capital loss to offset capital gains in the previous year. This is devastating to investors who can pay more in Federal capital gains taxes and State ordinary income taxes than the entire net gain over a two years or more. The tax rate for people making more than $33,000 a year is above fifty percent...if you add it up. What is rotten is that they are now measuring tax rates on gross incomes and not taxable incomes which have rates that are off the charts. HAM That $3K limit per year is a killer for people who have large gains one year but can only offset $3K carry over to offset it. If you have a large loss one year, you may never get to show it on your return. Inflation not only erodes the value of that deduction when you are finally able to take it, but also you might just outlive it. Just how did that Dr. in Kenya or Hawaii tie that belly button knot so neatly that it left no evidence of a "beaner bunner" ever being there? |
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Post by The Great Aztec Joe on Apr 30, 2011 8:46:31 GMT -8
It would be an outrageous attack on the middle class which is now, for the most part, the lower 70 percent of society as the tax would fall more heavily on them than on the rich (the upper 30% of society). NOPE! to that idea. Riots would ensue if any gang of nincompoops tried to force that upon the families of America. What we need is a national tax of 50% of all income in excess of $33,000 per individual. 50% over 33K. Talk about an "attack on the middle class". Let me guess Joe, you make 33K.
One problem that someone obliquely referred to above is the effect on long term planning by folks effected by the new tax. There is a boatload of folks who have taken advantage of Roth IRAs instead of contributing to a standard IRA. They did this so they could have "Tax Free" retirement funds. If you suddenly change to a national sales tax, they would all be screwed. The real question is what does the national sales tax replace? If it is all taxes including Social Security, Medicare, and corporate Taxes, then the question about the "poor" is answered. They would be better off, especially if non-prepared food is exempted. Taxing consummation instead of income would encourage savings and investment. Who cares if the rich don't get taxed on half their income if that income is banked or invested? Savings and investment are very good for the economy (we have too little of each). The rich are only better off because of the extra money they actually spend. The big problem is government. They would promise to replace taxes with the new tax but when the smoke clears we would still have all the previous taxes too. Bill I retired from Pacific Bell in late 2000 at that age of 52. Saying that I make 33,000 a year is a wild stab in the dark. I am now drawing Social Security since I turned 62, but my income from book sales and other sources has me considerably above 33,000 dollars a year. Life has been very good to me. The issue is not my income, though; it is the horrendous oppression of the poor in this country. Allowing everybody to make $33,000 before being taxed is about right. You can tweek the numbers if you want to, but that is a good approximation or starting point. |
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Post by Bob Forsythe on Apr 30, 2011 8:57:27 GMT -8
Windfall Profits Tax is not a loophole for oil companies. What special tax break do the oil companies receive? HAM It's not a tax break but I'd say the 4 billion a year they get in subsidies sure as hell should go by the wayside. =Bob |
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Post by The Great Aztec Joe on Apr 30, 2011 9:31:29 GMT -8
Windfall Profits Tax is not a loophole for oil companies. What special tax break do the oil companies receive? HAM It's not a tax break but I'd say the 4 billion a year they get in subsidies sure as hell should go by the wayside. =Bob Most Americans do not have a clue about all the Federal Assistance the Oil Companies get and have received over the years. In 1951 when my father at the age of 42 received a draft notice to go over to Korea and work in a Mash unit, he protested that he was a "very accomplished specialist" who worked in an area of expertise that nobody else worked. (He billed other dentists and oral surgeons for correcting their screwups with patients.) There was a lot more profit in billing the other doctors than there was in billing the patients many of whom would not or could not pay. The Army told him that the only way he could avoid the draft was to already be working for the US government. So Dad applied to the US Department of Public Health (thinking that he would get some government job in the Chicago area and would be able to continue his specialty on the side). The government gave him three options if they were to hire him. 1. He could be Chief of Oral Surgery for the territory of Alaska. 2. He could be Chief of Oral Surgery for the South Pacific. or 3. He could be Chief of oral Surgery for American Oil concerns in the Middle East. Now, we all know that he chose Samoa and the South Pacific form whence my Samoan brothers and one sister came from, but that is not the point of this post. The fact that the US government was giving Free Dental and Oral Surgery to American Oil companies in the Middle East IS the ISSUE. Why them and not the rest of us?  ? |
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