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If we are going to "means test" anything, the very first should be taxes..

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Bandit Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-16-11 09:01 AM
Original message
If we are going to "means test" anything, the very first should be taxes..
It used to be that way in this country...
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hack89 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-16-11 09:11 AM
Response to Original message
1. Don't we kind of do that already?
there is a reason, for example, that such a large proportion of Americans pay no Federal and state income taxes.
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Bluenorthwest Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-16-11 09:14 AM
Response to Reply #1
2. There is no tax break for the elderly.
Old folks pay taxes, disabled people pay taxes, the only way to not pay income taxes is to have no income. There is a formula used to figure how much of one's social security is subjected to income tax, but that is it. The rest is taxed just like it was when you were 40. The rules are the same for all ages.
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enough Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-16-11 09:20 AM
Response to Reply #2
3. If an elderly person has high income, should that income not be taxed?
I'm 67 years old, so I'm not trying to start a generational war. But I don't understand why a high-income old person should be taxed at a lower rate than a younger person with the same income.
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Bluenorthwest Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-16-11 09:35 AM
Response to Reply #3
6. I did not say it should not be., I just said it is taxed. Fact stuff.
The other poster said eleders are 'means tested for tax' and thus do not pay them. That is not correct. And let's be very clear here, we are not talking about 'high income' old people, just regular folks. And they are taxed at the same rate, no matter what age, we all have the same tax rates, there is no special rate for elderly, nor for disabled people.
The other poster said elders are taxed according to special rates, 'means tested' and that is simply not correct.
Rates of taxation do not change at retirement. Same for all.
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Bluenorthwest Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-16-11 09:46 AM
Response to Reply #3
8. And by the way, thanks for putting words into my mouth
Nothing, nothing in my post could be construed to mean what you reply with. You come at me with bs that I did not say. Why is that?
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hack89 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-16-11 09:21 AM
Response to Reply #2
4. There are plenty of people with income that pay no taxes
that was my point.

WASHINGTON (AP) -- Tax Day is a dreaded deadline for millions, but for nearly half of U.S. households it's simply somebody else's problem.

About 47 percent will pay no federal income taxes at all for 2009. Either their incomes were too low, or they qualified for enough credits, deductions and exemptions to eliminate their liability. That's according to projections by the Tax Policy Center, a Washington research organization.

In recent years, credits for low- and middle-income families have grown so much that a family of four making as much as $50,000 will owe no federal income tax for 2009, as long as there are two children younger than 17, according to a separate analysis by the consulting firm Deloitte Tax.


http://finance.yahoo.com/news/Nearly-half-of-US-households-apf-1105567323.html?x=0
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Bluenorthwest Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-16-11 09:38 AM
Response to Reply #4
7. This does not support your first contention that elders are given
tax breaks. In fact, this bit you post points out that families with children can earn lots of money and not pay taxes, those breaks do not apply to those without kids, nor to those of us whose families are not counted as 'real' by the discriminatory dogma that is called 'the law'.
Your original asked 'don't we already means test old people for taxes' and the answer to that is a big, direct NO, we do not.
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hack89 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-16-11 10:11 AM
Response to Reply #7
11. I never made that contention
I was addressing the OP, which if you notice, makes no mention of elders.

But speaking of senior citizens, what about the Credit for the Elderly or Disabled

Who Can Take the Credit: The Credit is based on your age, filing status and income. You may be able to take the Credit if:

Age: You and/or your spouse are either 65 years or older;or under age 65 years old and are permanently and totally disabled.

AND

Filing Status: Your income on Form 1040 line 38 is less than $17,500, $20,000 (married filing jointly and only one spouse qualifies), $25,000 (married filing jointly and both qualify), or $12,500 (married filing separately and lived apart from your spouse for the entire year).

And, the non-taxable part of your Social Security or other nontaxable pensions, annuities or disability income is less than $5,000 (single, head of household, or qualifying widow/er with dependent child); $5,000 (married filing jointly and only one spouse qualifies); $7,500 (married filing jointly and both qualify); or $3,750 (married filing separately and lived apart from your spouse the entire year).



http://www.irs.gov/individuals/retirees/article/0,,id=154021,00.html
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OHdem10 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-16-11 09:23 AM
Response to Original message
5. We have a graduated Tax System. Poor pay less, Rich pay more
We have the system in place.

Conservatives in both Parties have been on a tax cutting
spree over the last few decades.

Conservative Republicans had a scheme in place.
Reduca the tax revenue coming into the treasury
to a point where there is ssuch a small amount
we must end the the "entitlement programs", better
known as making the government small enough it
could be flushed down the bathtub drain.

Add that to country with millions out of work which
means they are not paying taxes thus no money
to the treasury and we have the crisis.

It is not the tax system. We have a progressive
system. It is what both parties have done to the
system.
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WingDinger Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-16-11 09:54 AM
Response to Original message
9. Wrote a song about it, and it goes like this
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SoutherDem Donating Member (317 posts) Send PM | Profile | Ignore Sat Jul-16-11 10:04 AM
Response to Original message
10. But, who would write the test?
I heard a few months ago that our tax system gets "fixed" about every 20 years and it is time. Because our elected officials have use the tax system to reward and punish certain actions and to encourage and discourage business growth, each year it gets more and more complicated.

Also, those who are writing the tax code don't take "cause and effect" into consideration. A tax break which helps one for a good reason becomes a favorite "loophole" for those who it was not intended. So, by the end of two decades the tax code becomes complicated and unfair it need to be scraped and we start over.

At this point several plans will be "sent up the flag pole to see who will salute". We have someone who feels the tax system should be so simple the form should fit on a postcard, we hear of flat taxes, progressive taxes which favor the wealthy, progressive taxes which favor the poor, some which put most of the burden on business and other on the employee, and consumption taxes, just to name a few. Each plan will get spun by the media so that the process becomes as complicated as the tax plan being "fixed".

So yes I feel it should be means tested, and it seems each time it is "fixed" it is means tested, (although we may not like the "grading curve"), but the real problem isn't the original tax code, it is the hundreds of changes which get added.



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Cool Logic Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-16-11 10:44 AM
Response to Original message
12. We do--the proper term is progressive tax.


Those earning less, pay less in taxes than the proportion of income they earn. Those earning more, pay more in taxes than the proportion of income they earn.

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