Obama Sends $3.7 Trillion Budget to Congress

[August]

Originally Posted by gimpy117

...I just have to file to get it back

You're not paying anything if you get it back.

[gimpy117]

Originally Posted by August

You're not paying anything if you get it back.

the point is, I could use that money now...not this next year when i file those taxes. remember im a broke college student. besides, i don't get anything from SS or Medicare taxes those are paid into the system and gone forever.

[Platapus]

Originally Posted by August

You're not paying anything if you get it back.

Then I have a deal for you.

Please give me $100.00 per month from Jan to Dec. On December 31st, I will give you, in cash, $1,200.

Deal?

Why not, you are not losing any money if you get it all back right?

But not only do you lose the use of the money, you are, in effect, giving me a zero interest loan of $100 for 12 months, $100 for 11 months, 10 months.......

I will be investing $100.00 for 12 months, $100 for 11 months.... and I will end up with more than $1,200 by the end of the year.

So yes the poor may get back 100% of what they paid in taxes, but that is not the same as not paying taxes at all. The poor in this country are simply loaning the government money at zero percent interest.... money they may need to buy food or pay rent.

[August]

Originally Posted by Platapus

So yes the poor may get back 100% of what they paid in taxes, but that is not the same as not paying taxes at all. The poor in this country are simply loaning the government money at zero percent interest.... money they may need to buy food or pay rent.

A years interest on $1200 bucks is about enough for a cup of coffee. Quit acting like it's gonna pay the rent. I see your point about interest but it's hardly a significant amount and I know from personal experience that the lump sum can come in awful handy (perhaps to make a rent payment).

Be that as it may, however it certainly does not demonstrate one way or the other whether someone who actually does pay taxes should pay more or less.

[tater]

For those like gimpy whining about having the money taken out, how about there is zero withholding, then every April you have to write a check, instead. You won't owe ANY income tax, but you'll have to pony up your full FICA or go to jail.

I'm fine with that.

Also, if you make that little, you likely get a bigger "refund" than the amount actually withheld as many do.

[Platapus]

Originally Posted by August

A years interest on $1200 bucks is about enough for a cup of coffee. Quit acting like it's gonna pay the rent. I see your point about interest but it's hardly a significant amount and I know from personal experience that the lump sum can come in awful handy (perhaps to make a rent payment).

There is a difference between "hardly a significant amount" and none. That was what I wanted to illustrate.

The point is that there is a misunderstanding when the government reports that x % of people have no federal tax liability and what is commonly discussed that x % of the people do not pay federal taxes. The two are not synonymous.

Oh and I agree that to many people they would prefer the one lump refund to a smaller deduction out of their pay. I knew a lot of people in the military who loved that.... they seemed to be the ones that did not do so well in math class.

PS. using an amortization calculator, at 1% interest, $100.00 per month for a year will result in a profit of $193.53 over the investment of $1,200. Hardly enough to retire on but a pretty expensive cup of coffee.

[August]

Originally Posted by Platapus

..they seemed to be the ones that did not do so well in math class.

Or at least they realized they'd just have pissed it all away along with the rest of their paycheck.

[August]

Originally Posted by Platapus

PS. using an amortization calculator, at 1% interest, $100.00 per month for a year will result in a profit of $193.53 over the investment of $1,200. Hardly enough to retire on but a pretty expensive cup of coffee.

That's funny, using a savings calculator I come up with $5.53 profit.

$1.00 initial savings balance (It required a starting value).
$100 per monthly deposit
1% interest compounded monthly
For 1 year
-----------------
$1206.53 savings balance

http://www.bankrate.com/calculators/...alculator.aspx

Maybe I'm banking in the wrong place!

[Hylander_1314]

"...100% of what is collected is absorbed solely by the interest on the Federal Debt, and by Federal Governemnt contributions to transfer payments. In otherwords, all individual incame tax revenues are gone before one nickel is spent on the services which taxpayers expect from their government." The Grace Commission 1982