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#1
11-07-2007, 04:29 PM
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Taxes and Timing
This might belong in some other thread but I would really like to get the forums opinion on this.
I am of the opinion that the majority of US citizens are unaware of the amount they give to government every year. I mean, I think people have a general idea (too much!), but when it comes down to it they dont really know and dont really care. I think the problem lies in how taxes are collected. By being directly siphoned out of paychecks, or tacked on to buying this or that, taxes become this unavoidable cost of life. You never even see 25+% of your paycheck every two weeks. It is easy to not miss what you never had. What kind of uprising would we see against government spending and taxation if every citizen had to write a check at the end of every month or year for the same amount that is right now just taken from them? I would predict a much different political landscape than the one we have now. 
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#2
11-07-2007, 04:44 PM
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Re: Taxes and Timing
I tend to agree, especially on all forms of a sales tax. From gasoline, beer, cigarettes, to any standard retail purchase, most people probably don't know or pay attention to how much they pay in taxes. I actually have no idea, because I have never kept track. It would be an interesting 2+2 class project: Keep track of all the sales tax paid in a given month. For smokers and drinkers, this number has to be large.
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#3
11-07-2007, 04:47 PM
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Re: Taxes and Timing
There is no way a 35% income tax could be collected on people at the end of each tax year. People don't have the restraint to hold on to that kind of money. Poker players are one of the few professions that have to deal with this and it is amazingly depressing. I think a good step towards eliminating the income tax would be to bar the IRS from taking any money towards the 2007 income tax until April 2008. Either a huge percentage of the work force is criminal or having an enormous income tax is not a good idea.
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#4
11-07-2007, 04:51 PM
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Re: Taxes and Timing
this is of course the case and the primary reason for withholding rather than having everyone pay a bill at the end of the year.
Congress understood very well the point you just made. Withholding and other semi hidden forms of taxation are intentionally done in that manner. Once the sheep becomes aware that he is being sheered he tries to run.
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#5
11-07-2007, 04:52 PM
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Re: Taxes and Timing
Monthly would probably work fine. Most people manage to pay their rent/mortgage just fine. Yearly would definitely create a crisis, because no one would have the cash to pay.
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#6
11-07-2007, 04:55 PM
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Re: Taxes and Timing
Right. That would be the whole point. All the people who want the govt to provide health care and ponies for children or whatever would have to step back and say "damn, this costs a ton of money. Maybe it would be better if I kept it and took care of myself." Instead of blindly forking it over.
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#7
11-07-2007, 04:58 PM
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Re: Taxes and Timing
[ QUOTE ]
Right. That would be the whole point. All the people who want the govt to provide health care and ponies for children or whatever would have to step back and say "damn, this costs a ton of money. Maybe it would be better if I kept it and took care of myself." Instead of blindly forking it over. [/ QUOTE ] You're such an optimist. I would guess the reaction would be more along the lines of "Damn, this costs a ton of money. Why aren't they taking more from rich people, I can't afford this!"
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#8
11-07-2007, 05:08 PM
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Re: Taxes and Timing
You're right about one thing, there are a lot of people who don't think they pay taxes because they get a refund.
However, people who don't have taxes withheld are usually required to file estimated taxes quarterly. If withholding were to be eliminated, that's likely how everyone would have to file. At least that would focus everyone on how much they were actually paying, as well as place a resource drain on the feds.
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#10
11-07-2007, 05:35 PM
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Re: Taxes and Timing
[ QUOTE ]
do ppl really not know how much they pay in taxes? i mean if theyre on an annual salary and and its say 75k a year, dont they notice when they only get paid 55k? [/ QUOTE ] The notice that they get paid 55k, they don't think about what they could have done with the other 20k because they're conditioned to consider it as not their money. To them, it's the same as the company saying "We're paying you $55,000 to do the work and giving $20,000 to someone else".
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