A tax analogy, who's really paying their fair share?

UncleBuck

UncleBuck

Well-Known Member
Harrekin said:
Do you guys not get an end of year settlement report from your tax authorities stating how much net tax you paid in the year?

We get one in January every year (called a P60 here), couldn't that settle this argument? (Obviously with identifying stuff excluded)
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i already stated a while back i couldn't find the return, so i posted a pay stub instead.
 
B

BigNBushy

Well-Known Member
UncleBuck said:
i already stated a while back i couldn't find the return, so i posted a pay stub instead.
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Very convenient.

Everyone, and I mean damn near everyone, has more withdrawn from their pay than the government keeps at the end of the year. It is why you hear everyone bitching about giving the government an interest free loan.

Then there is the earned income tax credit, and the standard deduction, or itemized deductions. All of this is calculated by you or a tax return specialist (H&R Block, or a CPA or whomever) and sent to the IRS and they send you money back.

You look at how much they send you back, compare that against your total withholding from the last pay stub of the year, take some common sense and a calculator, and arrive at an effective tax rate.

You have one piece of the equation there.

In no way is that your tax rate.

If you believe that to be your tax rate, you have lost forever any right to call anyone stupid.
 
UncleBuck

UncleBuck

Well-Known Member
BigNBushy said:
Very convenient.

Everyone, and I mean damn near everyone, has more withdrawn from their pay than the government keeps at the end of the year. It is why you hear everyone bitching about giving the government an interest free loan.

Then there is the earned income tax credit, and the standard deduction, or itemized deductions. All of this is calculated by you or a tax return specialist (H&R Block, or a CPA or whomever) and sent to the IRS and they send you money back.

You look at how much they send you back, compare that against your total withholding from the last pay stub of the year, take some common sense and a calculator, and arrive at an effective tax rate.

You have one piece of the equation there.

In no way is that your tax rate.

If you believe that to be your tax rate, you have lost forever any right to call anyone stupid.
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people in the 25% tax bracket are not eligible for the EITC, that is for people making very little, around $15k or less from what i recall.

this is why i don't take tax advice from people working at subway or online frauds like beenthere.
 
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beenthere

New Member
UncleBuck said:
people in the 25% tax bracket are not eligible for the EITC, that is for people making very little, around $15k or less from what i recall.

this is why i don't take tax advice from people working at subway or online frauds like beenthere.
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I say you never made it to the 25% bracket, what say you.
 
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