Monday, August 20, 2007
Robbing-Hood: The IRS and You.
Is it time for consumption taxes?
Jim is a very skilled yardman. He’s highly praised because of his ability to judge a client’s lawn and determine the best practices to apply, practices he learned from his father. James, is a very skilled yardman as well, however, in addition to having this skill, he also completed course work at a local community college where he learned to not only use his equipment, but also repair it. Enter John. He comes along, and has the same skill set as the previous two; however he has completely course work where he learned business and management skills.
Mr. Smith has recently started his very own lawn service and has acquired so much clientele that he can no longer handle all the work alone. So he hires all three of the men: Jim at $6.50 and hour, James at $16.00 and hour and John at an astounding $26.00 and hour.
Can you see where I’m going here? Although, this is an overly simplified scenario, and grossly inaccurate as far as the pay is concerned, let’s use it to demonstrate where the flaw(s) lies in our current tax system, and in society altogether.
Now, let’s also assume that the individuals have a steady works schedule that results in Jim grossing around $15,000 per year, James grossing around $32,000 per year, and John grossing around $78,000 per year.
Is it time for consumption taxes?
Jim is a very skilled yardman. He’s highly praised because of his ability to judge a client’s lawn and determine the best practices to apply, practices he learned from his father. James, is a very skilled yardman as well, however, in addition to having this skill, he also completed course work at a local community college where he learned to not only use his equipment, but also repair it. Enter John. He comes along, and has the same skill set as the previous two; however he has completely course work where he learned business and management skills.
Mr. Smith has recently started his very own lawn service and has acquired so much clientele that he can no longer handle all the work alone. So he hires all three of the men: Jim at $6.50 and hour, James at $16.00 and hour and John at an astounding $26.00 and hour.
Can you see where I’m going here? Although, this is an overly simplified scenario, and grossly inaccurate as far as the pay is concerned, let’s use it to demonstrate where the flaw(s) lies in our current tax system, and in society altogether.
Now, let’s also assume that the individuals have a steady works schedule that results in Jim grossing around $15,000 per year, James grossing around $32,000 per year, and John grossing around $78,000 per year.
They will be taxed according to the U.S. Federal Tax Schedule for single individuals
For years we’ve heard people speak of their tax refunds as if they are receiving a gift from the government. As if that is the reward for paying your taxes and paying them on time. Well, I have news. It is not an award or reward, it’s your money! While, lower income families are taxed less, the top tax payers, those around John’s pay range and up, pay more than 90% of the taxes in this country, and right now it looks as though they will be paying all of them pretty soon, with platforms floating around that promises to increase taxes and continue to expand the Earned Income Tax Credit. (I love it...“credit”) This move could shift the tax burden to almost 99% belonging to the top payers, with lower income families haven’t almost no tax liability, since their paid taxes and the extra credit will be refunded to them.
Your skill set directly influence your financial status in this country. If you have a marketable skill, you can demand a market pay for that skill, if not, you are left to haggle with your employer. But in the meantime, we owe it to ourselves to live within our means. However, we do live out side our means. That actually seems to be the American way, so maybe; just maybe, a consumption tax could level the playing field and place tax liability in its proper place.
If Jim’s income is not enough to sustain his way of life, the federal government should not forcefully take more money from John. Jim should live within his means, and strive to increase his skill set.
Oh, and if you think you’re voluntarily paying your taxes and the IRS is not taking it from you, try this. Next year, throw out your w-2’s and don’t file and see what happens.
// posted by Distracted @ 11:15 AM 
Comments:
<< Home
I have often thought the current tax code sucks .... I think so because me a single man with no kids takes the most in taxes ... well and don't get sh*t back ... I feel ya just vinting
check me out ...
young william
Post a Comment
check me out ...
young william
Subscribe to Post Comments [Atom]
<< Home
Subscribe to Posts [Atom]