Breaking down the Romney Tax plan

[mvscal]

a nonpartisan think tank run

Think again, idiot, or better yet try thinking for yourself if you're able.

Here's a summary of the report:

neutrality mathematically necessitates a shift in the tax burden of at least $86 billion away from high-income taxpayers onto lower- and middle-income taxpayers.

Either that or $86 billion in spending cuts. In any event, there is no such thing as "lower income taxpayers." The entire study is one gigantic strawman. Here's a link to Romney's plan. Note that there is no mention whatsoever of "revenue neutrality."

http://www.mittromney.com/issues/tax

To repair the nation’s tax code, marginal rates must be brought down to stimulate entrepreneurship, job creation, and investment, while still raising the revenue needed to fund a smaller, smarter, simpler government.

His plan is to cut taxes and spending.

[mvscal]

So most of us get a tax increase

You're already getting at least one, you brainless dickhead. It's called Obamacare.

[Left Seater]

Jsc810,

Where do the tax increases end?

You want to cut taxes for those making under $200K but raise them for those making more than that. We are already spending more than we take in and Obamacare isn't even up and running yet.

So what is a fair share for those making over $200K? What about those making $150K, $75K, $25K? What happens when Obamacare is in full swing and the deficit spending is double today? Will you suggest raising taxes on the "rich" again?

As you continue to raise the taxes on the "rich" it makes more sense for them to stop earning and start spending. If even the top 1% of earners stepped away and stopped the majority of their earning our deficit would make today's growth seem like pocket change.

[mvscal]

In any event, there is no such thing as "lower income taxpayers."

Sure there is

Self-employed, any age: $400
Children and Teens classified as a dependent: $5,700
Single, under 65: $9,350
Single, over 65: $10,750
Married, filing jointly, both spouses under 65: $18,700
Married, filing jointly, one spouse over 65: $19,850
Married, filing jointly, both spouses over 65: $20,900
Married, filing separately, any age: $3,650

None of those people pay a dime in federal income tax.

[Left Seater]

What happens when Obamacare is in full swing and the deficit spending is double today?

I'd like to read one fucking study that isn't slanted left or right on this issue
according to the left and the CBO it's going to reduce the deficet by reducing the expeditures on Medicare
according to the right it's going to cost a trillion and bankrupt the economy
All we get are massive doses of opinions

I agree, the problem is I don't think there are any completely independent economist to give that opinion. Sadly, we have to just wait and see.

There also isn't any history of the Federal Government expanding benefit programs and costs actually going down.

I can tell you from personal perspective we pay out the ass for UHA benefits at my company / $280 bi-weekly and that's with a $1,500 deductable. It seems to get more expensive every couple years and the benefits are less

You can do what we have done and radically increased the deductible. We then give each employee a flexible spending card pre-loaded with enough money to cover their deductible. Overall our costs fell initially and have stayed quite flat.

My oldest son has No insurance - He works for a contractor making about 26K per year. He's fucked for life if he gets seriously hurt or ill, yet health insurance is too expensive for him to afford. Not that this is really applicable beacuse Missouri (and Texas) apparently is going to opt out of the plan along with a bunch of other states

Which kind of brings up the point - if all states can opt out, then how exactly is this ever going to either cost anything or change anything? If this is so despised and public sentiment is against it (no debate about that according to polls) - then each state should just say Fuck you, No and voila - no problem

As 88 pointed out they are not setting up the insurance exchanges because this is yet another unfunded Federal Mandate. As such the Feds will have to do it thru the expansion of Medicare. Which means that the CBO's estimate of Medicare expenditures decreasing is not going to happen.

[mvscal]

My oldest made 26K this last year and wrote IRS a check for $5600 - I'd sure as hell classify him as lower income taxpayer

Bullshit.

Either your oldest is a complete dumbfuck or he is sitting on a shitload of capital gains.

[mvscal]

If you will look into the CBO, you will find that is is independent and objective, by design.

And if you will look into the BO administration, you will find that a lot of things aren't working as designed.

[mvscal]

Nope - he is a contract employee and at end of year gets a 1099. He then takes that down Block which does it for free since he uses short form.

The fact that he is taking a short form to HR Block doesn't speak to great intelligence. The first thing he needs to do is ditch that free "service." A straight federal return for a single filer with zero withholding, one dependent, no other deductions and no state income tax should only pay about $2K on a GI of $26K, if even that. Missouri has a state PIT, so that would be even less. If he properly itemized his deductions he might even get money back.

He's getting cornholed.

[atomicdad]

Well then he is getting fucked by HR Block.

For 2011, 26K - $3700 personal exemption puts him at $22300 AGI, Tax table shows single status tax liability is $2924. Why the fuck is he scratching a check for $5600 to the IRS?

[Goober McTuber]

If he's a contractor, isn't he also funding the employer portion of SS?

[mvscal]

Any chance you'd want to do his taxes next year?

I'll do them. Just have him mail me his information and a check for $5,600.

[mvscal]

Not sure what deductions you think a 26 yr old kid has or would have -

As a contractor, just about all of his business expenses for starters including his gas or mileage.

[Derron]

Not sure what deductions you think a 26 yr old kid has or would have -

As a contractor, just about all of his business expenses for starters including his gas or mileage.

.50 per mile on vehicles, should be able to figure out how to write off about every mile he drives, cell phone, internet access, computers and office supplies, home office deduction, subscriptions and dues, meetings, 1/2 food on the road, and what ever else you can find and bury on a Schedule C.

[Goober McTuber]

Not sure what deductions you think a 26 yr old kid has or would have -

As a contractor, just about all of his business expenses for starters including his gas or mileage.

After checking - this turns out to be a decent idea.

I had thought the % of his gross income had to be higher - but turns out it's only 2% for him to itemize

You mod the financial forum, and you get schooled on tax code by Dohron? Priceless.

[Rooster]

"You mod the financial forum, and you get schooled on tax code by Dohron? Priceless." --goober

^^^ That. Rack goobs.

[Dinsdale]

See if I have this right...

Dude is a contractor, took his taxes to H&R, and the preparer didn't ask him about his cell phone, vehicle milage, computer/internet, or any other work-related expenses?


I don't even know what to say to that.

I'm laughing though.

[Mikey]

newsflash - I'm not a tax expert, nor will i ever claim to be

My tax return looks like a phone book and costs me over $800 every April :brad:

Darren is, or was, a contractor hence he knows more about this subject than I do or care to

It may save my kid a few $$ and I'm grateful to learn something that can help him

He can file an amended return for up to three years after the original return was filed.

PM me for my mailing address. I'll expect a 25% commission on any retroactive refunds for this bit of well researched advice.

[Dinsdale]

BTW -- this smells like massive amounts of bullshit.


If you get a 1099MISC, you can't file a short form. I would think a tax pro would know this.

[Bizzarofelice]

I get exactly the same government services...

no

[Dinsdale]

Wanna take another run at it, dumbass?

wrong as usual Dins - http://www.irs.gov/instructions/i1040ez ... tml#d0e448

Checklist for Using Form 1040EZ
You can use Form 1040EZ if all the items in this checklist apply.

Your filing status is single or married filing jointly. If you were a nonresident alien at any time in 2011, see Nonresident aliens below.
You do not claim any dependents.
You do not claim any adjustments to income. Use TeleTax topics 451-453 and 455-458 in Section 6, later.
You claim only the earned income credit. Use TeleTax topics 601-602, 607-608, and 610-612 in Section 6, later.
You (and your spouse if filing a joint return) were under age 65 and not blind at the end of 2011. If you were born on January 1, 1947, you are considered to be age 65 at the end of 2011 and cannot use Form 1040EZ.
Your taxable income (line 6 of Form 1040EZ) is less than $100,000.
You had only wages, salaries, tips, taxable scholarship or fellowship grants, unemployment compensation, or Alaska Permanent Fund dividends, and your taxable interest was not over $1,500.
If you earned tips, they are included in boxes 5 and 7 of your Form W-2.
You do not owe any household employment taxes on wages you paid to a household employee. To find out who owes these taxes, use TeleTax topic 756 in Section 6, later.
You are not a debtor in a chapter 11 bankruptcy case filed after October 16, 2005

A little hint for you... self-employment compensation isn't "wages."

Uhm... I'm right, you're wrong (as is the tard at H&R)... deal with it.

Anyone who recieves a 1099MISC MUST file Form 1040. Not an option. Anyone who makes more than $400 as self-employed MUST file Form 1040.


Nice try... even after you were told the laws... dumbass.

[smackaholic]

What Dins said. Your kid, or more accurately, your kid's business received 26K gross. He has considerable expenses, and yes, he does have an office. It is where he lives. He can deduct part of his rent/mortgage. I can't imagine how the hell he couldn't get his income well below 20K. Then, he can use his standard deduction on this actual income.

I might be a little off on that second part, but, then again, I don't pass myself off as an interweb finance dude, by any stretch. You really need to be shitcanned as the finance mod.

[Dinsdale]

I might be a little off on that second part, but, then again, I don't pass myself off as an interweb finance dude, by any stretch. You really need to be shitcanned as the finance mod.

Just jaw-dropping ignorance from a self-styled financial guru...

I like the part where he tried to argue the written in black and white tax law, even after it was explained to him.

Yup, Mr. Finances doesn't even know what "wages" are.

[Dinsdale]

Go to the IRS website and READ IT, dumbass. I suppose you're not quite in the echilon of dumbass as your unfortunate spawn's tax preparer, but you're a dumbass, nonetheless.

I'm not sure which part of "you're wrong" you're not getting here, but it's still a fact.

[Dinsdale]

OK, dumbass...

Finally, you must use Form 1040 under certain circumstances, such as:

1. Your taxable income is $100,000 or more
2. You have certain types of income such as unreported tips, certain nontaxable distributions, self-employment earnings, or income received as a partner, a shareholder in an "S" Corporation, or a beneficiary of an estate or trust

Guess what -- if you got a 1099MISC, YOU'RE SELF-EMPLOYED (in the eyes of the IRS, anyway).


Yup -- you're still a dumbass. They really don't sit around and plot ways to keep this shit secret... they actually explain it quite well.

Sin,
DUDE WHO GETS 1099MISC's

[Dinsdale]

The part where it's illegal?

[Dinsdale]

Matter of fact, there's nowhere to even put 1099MISC income on a 1040A... you'd think that might be a red fucking flag to the retard who did your kid's taxes.


The rules are quite clear -- and the Doltnamic Duoof your kid and H&R decided to break them... I'm guessing nothing will become of it, but...

good luck with that.

[Dinsdale]

Still not catching on, even though I posted the fucking rules, word-for-word?


This is why you're viewed as a tard.


But by all means, tell your hopefully-smarter-than-you son to keep filing illegal returns, and putting income in boxes that tell you not to put that income there.

There isn't even a place for it on a 1040A, for chrissake.

[smackaholic]

He files a short form - he gets a 1099
What part of that is not crystal clear?

Do you two Mensa not think Block wouldn't milk him for a full itemization if they could?

But please, by all means keep flailing away

Block is the Mc Donald's of tax prep. Probably staffed by a college kid working part time. You don't think he talked to a CPA there, do you?

[Goober McTuber]

Your son pays $2200 in federal taxes (~10%). I likely work the same number of hours or more each year and pay in excess of $100,000 in federal taxes (>30%). I get exactly the same government services for my tax contributions as your son does (probably less, since I do not qualify for any government aid at all). Obama says I don't pay my fair share. H4Ever wants my severed head on a pike. Go figure.

one year I made 360K I paid 100K total (don't know the breakdown) - so been there

On average now I'm paying close to 60K every year but not wanting for anything and have saved up quite a bit so I don't really get that worked up about it. It's not like there's anything you can do about it.

So we have two admins that have paid 100K per year in federal taxes, and another that lives in a 15,000 sq ft house with 53 televisions. Mgo probably owns the Willis Tower and part of the Cubs. This joint is run by the 1%.

Occupy T1B

[Terry in Crapchester]

Not sure what deductions you think a 26 yr old kid has or would have -

As a contractor, just about all of his business expenses for starters including his gas or mileage.

.50 per mile on vehicles, should be able to figure out how to write off about every mile he drives,

$.55 per mile for second half of 2011.

I know that one quite well. I have to do a ton of driving.

[Dinsdale]

I certainly don't wan't to go toe-to-toe IKYABWAIing with a pro, but really?

Once again (for the slow folk KC is famous for) -- I'm right, you're wrong. Documented, proven with the rules directly from the IRS (my anecdotal personal experience aside).

But your ego's inability to admit being wrong is quite entertaining... please continue. Tell us more about how a 1040A is the proper form for the self-employed, despite IRS rules explicitly stating otherwise, posted in this very thread for all too see.

It's working out well for you, and me as well -- watching your misplaced pride in wrongness not allow you to actually read the IRS rules and admit you're wrong is plenty entertaining.

Too bad -- all your financial guruship and much bragged about wealth still can't buy you a clue. And at this, I laugh.

[Dinsdale]

But yet you did. and in ultimate form as you typed the exact insult verbatim

You typed that, and the light still didn't come on? I mean, it's a dim bulb to begin with, but geez.

How can someone relating what happened be wrong?

All I said was the H&R Block guy is a tard, and I explained why.

You even wrote:

It may save my kid a few $$ and I'm grateful to learn something that can help him

And you don't think staying away from the wrong end of the IRS by filing the wrong form at a young age is helpful?

I guess the definition of "grateful" in KC is radically different from civilization.

perhaps you missed my earlier comment that I'm not a Tax expert nor do I claim to be one

Your failure to grasp that is hilarious, but not unexpected

Uhm... basic logic (sup Not You) dictates that I grasped it quite well from the get-go... hence my response. You don't seem to grasp that H&R Dude is not a tax expert, either.

I suppose when making a point in an internet thread is your definition of success, you have to milk those moments for all they are worth

Something about a kettle and a pot (THAT was, by definition, IKYABWAI, and quite appropriate).

[Derron]

I'm not arguing what form should be filed - and perhaps you missed my earlier comment that I'm not a Tax expert nor do I claim to be one

There is this thing called software, and it is used for a variety of things, among which is fairly accurate tax preparation.

It cost about $ 89 each year give or take. More for the full blown business version, which I used for a 1M per year business.

The narrative clearly determines what and how you need to file.

H & R Cock opens offices 3 or 4 months a year and sends a bunch of morons in. Even the most basic person doing their own taxes knows you cannot use the 1040A for self employment. But have at it.