Tax Question

Strangest TribeStrangest Tribe Posts: 2,502
edited October 2008 in A Moving Train
A lot of people are running around saying the wealthiest 5% of this nation pay 90% of the taxes, or some bullshit like that.

Here are my questions and some thoughts:

Is the bailout money taxable? I've heard no it's not, so where did that money come from?

So if we take it that 90% of the taxes came from 5% of the wealthiest then we turn around with almost a trillion dollars in bailouts (taxfree) back to the wealthy then essentially are we even taxing them at all?

If this bailout money is used to generate profits (which it is intended) what happens to the balance sheets this year if the bailout money isn't taxable? Won't these companies claim huge losses for 2008 and further become exempt from federal taxation this year and even next?

So should we continue to allow tax breaks for the wealthy?

How can we?
the Minions
Post edited by Unknown User on

Comments

  • know1know1 Posts: 6,794
    I think you've got some of the logic mixed up there, but your point is valid. This bailout was a crock and I'm going to vote against everyone I can who voted for it.
    The only people we should try to get even with...
    ...are those who've helped us.

    Right 'round the corner could be bigger than ourselves.
  • prytojprytoj Posts: 536
    the 700 bil will be isuued by the fed as new currency. The money does not come from the existing money supply. It is new money, or money added, to the total money supply.
  • prytoj wrote:
    the 700 bil will be isuued by the fed as new currency. The money does not come from the existing money supply. It is new money, or money added, to the total money supply.

    Yeah I get that, but if I personnally paid $20,000 in taxes this year and then was given back $20,000 or more because I had a bad year then I really didn't pay taxes. So then if I'm not taxed on the bailout money I could still declare my loses right?

    I'm purposefully trying to simplify things down to the basic facts then we can argue the microcosms.
    the Minions
  • prytojprytoj Posts: 536
    Yeah I get that, but if I personnally paid $20,000 in taxes this year and then was given back $20,000 or more because I had a bad year then I really didn't pay taxes. So then if I'm not taxed on the bailout money I could still declare my loses right?

    I'm purposefully trying to simplify things down to the basic facts then we can argue the microcosms.

    I think we'd have to look at the legislation, to really answer that. And since it changes almost dailiy, not exactly a piece of cake. I thnk that a 20 grr reduction in taxes means your paying a whole hell of a lot more than 20grr to begin with. But that's only opinion.

    Can anyone answer this?
  • jeffbrjeffbr Seattle Posts: 7,177
    Yeah I get that, but if I personnally paid $20,000 in taxes this year and then was given back $20,000 or more because I had a bad year then I really didn't pay taxes. So then if I'm not taxed on the bailout money I could still declare my loses right?

    I'm purposefully trying to simplify things down to the basic facts then we can argue the microcosms.

    You're confusing personal income tax with corporate bailouts. The wealthiest 5% didn't get that bailout money back personally. The wealthiest 5% don't all work at Wall Street banks. So the wealthiest 5% didn't break even and pay no taxes due to the bailout. Those are 2 completely separate issues that you're trying to lump together to minimize the contribution of the wealthy to tax revenue even though most of that revenue is due to them.
    "I'll use the magic word - let's just shut the fuck up, please." EV, 04/13/08
  • jeffbr wrote:
    You're confusing personal income tax with corporate bailouts. The wealthiest 5% didn't get that bailout money back personally. The wealthiest 5% don't all work at Wall Street banks. So the wealthiest 5% didn't break even and pay no taxes due to the bailout. Those are 2 completely separate issues that you're trying to lump together to minimize the contribution of the wealthy to tax revenue even though most of that revenue is due to them.

    It all goes from the left hand to the right hand. You're confusing income tax with wages. Income would include, investment income, stock dividends, and money made thru interest and other banking windfalls. ALL INCOME that's taxable is what I'm speaking of. You know...when you fill out your 1040 you have one section that is WAGES....and another section called OTHER INCOME....

    Certainly the majority of the wealthy are invested in the overall system. So they rise and fall with it depending on their invested amount.

    I'm not talking about myself alone... but myself AND my business.

    My business makes my living both small and large. If my business is doing good, so am I, and I'm driving a Cadillac and not a Hyundai....
    the Minions
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