What I don't get is how you can say the system is flawed but you don't see it as oppression in certain areas. I keep moving the subject, trying to show you oppression and you find some way to justify it or shoot it down.
There are laws and government intervention that hold back poor people, but not by design - and it's usually not what everyone thinks. Taxes are not really one of them. Our tax code is biased heavily in favor of the poor. As income goes up from $0 you transition all the way from actually profiting off of the tax code at the low end (it's called an earned income tax credit) to paying roughly 50% in total at the top end.
I'm broke not poor. Poor can't pay their bills, you can pay them and be broke.
I'm not super familiar with this distinction. I think that there is a segment of society that focuses on income rather than wealth (I guess that's really 99% of society actually). So perhaps you're drawing the line between broke and poor as having income and spending it all vs. having no income. To me, either one is poor, but it's just semantics.
And I'd love to show you how small business starting up get screwed in the tax department, my advisor almost choked on her drink when she put all my info in the computer. All cause I'm self employed... And $42k is not poor as far as the IRS is concerned.
Yes it is. I don't know how your business is incorporated, but you should be set up as an LLC most likely. That puts your business income on your personal tax return. If your only source of income for the year is $42k, and you have no deductions (don't own a house, don't have daycare expenses, don't have a retirement account - which you
can get if you're self employed, don't have kids, which I believe you do), and if you're single, you can at a minimum take the standard deduction which is just over $6k - which puts your taxable income at $36k. That's 10% for the first 10k, and 15% for the subsequent $26k federally - which amounts to about $5k in tax. If you truly have no deductions, that's what you pay - which amounts to 12% tax federally (which is a hell of a lot less than I pay).
However, if you have 1 kid (which I believe you said you do) you qualify for earned income tax credit and the child tax credit - both of which apply. The child tax credit is $1000 per child, and the earned income tax credit is $3359 for one child for a grand total of $4359 - putting your total tax liability at $600 on $42k of income. That's a net tax rate of just over 1% federally. If you're renting, you also don't pay property tax, so you're not paying much at all for education for your kids' schooling. If you own, you can take a mortgage interest deduction if it reduces your tax liability for the year. If not, you don't have to take it.
Oh and I have to pay her too. Get where I'm going with this?
Yup. I have to pay someone to prepare my taxes as well. It's insane that our tax code is so complicated that we pay someone to help us comply with the law. I hate it, you hate it, it should be changed. But it doesn't hold you down relative to anyone else.
It would be nice to be a big company that can find 1000 loop hole to avoid paying in.
There is no such thing. One of the big "loopholes" is incorporating in Ireland to take advantage of the Double Irish with Dutch Sandwich tax break. It's a very complicated business structure that involves shell corporations in various countries. The net effect is to not have to pay
US corporate tax on goods sold outside the US (which companies shouldn't have to pay anyway). They still have to pay US tax on revenue in the US, and they still have to pay UK tax on revenue in the UK. They just don't
also have to pay US tax on revenue in the UK. If you want to call that a loophole and "avoiding paying in" like our politicians seem to like to refer to it as, fine. But that's not what it is. Personally I take advantage of every deduction I can (as does president Obama, and everyone else). So I take advantage of the mortgage interest loophole, and the 401k loophole, and the daycare expenses loophole.
I really am done with this argument, try living a different class of life then you might see the oppression. The view is always nice at the top of the mountain
I started out in debt making minimum wage.
And the system is rigged, the same FBI that couldn't charge Hillary while throwing her business all over the TV live, can't be bothered to tell you the real reason why a 22 year old kid from New Jersey was found lynched from a tree in the South.
I'll grant you that Hillary is getting some preferential treatment, but I don't see overarching system rigging against the poor in this country. I see the opposite, a 1% tax rate on $42k of income.
I'm glad to see that you're actively participating rather than closed to other points of view.
