Happy Tax Day (almost)

I was curious about something the other day, as I was sending my tax stuff off to the accountant...some quick Googling and a little bit of division shows that the Federal government's 2014 budget works out to approximately $12,000 for every man, woman, and child in this country. But, the tax receipts for the Federal government are only about $9,000 in 2014 for every person. That $3,000 gap is what contributes to the debt.

A quick survey: Did you pay more or less than your share of the 2014 Federal budget?

Interestingly, the Federal taxes I paid this year were pretty close to the $12,000 number, but after my refund they'll be closer to the $9,000 number.

Does that include corporate taxes?

volvoclearinghouse wrote: A quick survey: Did you pay more or less than your share of the 2014 Federal budget?

I paid for mine and more then a few others. Though I imagine you are forgetting corp tax, state taxes not just federal and all the other hidden taxes in this calculation.

I was looking at just the Federal budget, and federal tax receipts, and I broke out what I paid in just Federal taxes this year. But yes, I was not including corporate taxes, and the US has one of the highest corporate tax rates in the developed world (although we also have the most deductions and loopholes therein)

Corporations are all ultimately owned by people, so corporate taxes are still coming out of the pockets of individuals in the form of lower dividends and/or reduced share price.

I paid nothing to the U.S. Federal government for this past year, because it turned out that I paid a lot more than my fair share to the Canadian government. So... I guess that makes me a good citizen of the world or something.

codrus wrote: Corporations are all ultimately owned by people, so corporate taxes are still coming out of the pockets of individuals in the form of lower dividends and/or reduced share price.

/troll

With what my wife and I are paying this year, several of you can rest easy, we have paid your share

I contributed over two Challenge cars.

Clearly, what we need in this country is a flat tax. Not a flat rate tax, a flat tax. Everyone pony up their 12 grand!

Don49 wrote: With what my wife and I are paying this year, several of you can rest easy, we have paid your share

Whatever you missed I got so everyone here should be good. (PS, buy my cars so I can pay the tax man)

Beer Baron wrote: I paid nothing to the U.S. Federal government for this past year, because it turned out that I paid a lot more than my fair share to the Canadian government. So... I guess that makes me a good citizen of the world or something.

Huh?

I'm not helping out, in fact, I'm hurting it to the tune of a very ratty Miata that probably isn't running, but could be.

Somebody really needs to tell the IRS that the average operating cost for a vehicle is NOT $0.565 a mile. Because that really helped me out there.

What's my share if I didn't make any money?

I expect no tax liability this year.

So, your math is not suggesting $12K per household, it's suggesting $12K per person, right?

So my wife, myself, and my 3 dependent kids means I owe $60K in taxes, right?

Hahahahahahaahaahaha. Fat chance.

In reply to volvoclearinghouse:

Regardless of how the math is done, your numbers are sobering.

SVreX wrote: What's my share if I didn't make any money? I expect no tax liability this year. So, your math is not suggesting $12K per household, it's suggesting $12K per person, right? So my wife, myself, and my 3 dependent kids means I owe $60K in taxes, right? Hahahahahahaahaahaha. Fat chance.

Yep. 12 grand per man, woman, and child. So for me and my wife, that's 24,000 right there. And she paid zero in taxes, because she had no income.

Very sombering numbers.

For clarity, here are the numbers:

-Federal budget: $3.77 trillion (2014)

-Tax receipts: 3.03 trillion (2014)

-US population: 320 million (est, based on 2010 census)

3.77 trillion divided by 320 million gives $11,871.25.

3.03 trillion divided by 320 million gives $9468.75.

I almost feel like I should be writing the word budget in quotation marks. :-/

I know what you missed...

Income tax is not the only source of revenue.

Federal Government Revenue sources

Apparently, personal income taxes and payroll taxes are only 82% of the revenue stream.

That makes the numbers work.

The 2013 1040 instructions has a pie chart for fiscal 2012:

Income:
Personal Income taxes: 32%
Corporate Income Taxes: 7%
Social Security/Medicare/Unemployment/retirement taxes: 24%
Excise, customs,estate, gift, etc: 7%
Borrowing: 30%

Outlays:
Social Security, Medicare, retirement: 38%
National Defense and foreign affairs: 24%
Social programs: 21%
Physical, human, community developement: 9%
Debt interest: 6%
Law enforcement & govt operations: 2%

Footnotes for Certain Federal Outlays

1. Social security, Medicare, and other retirement: These programs provide income support for the retired and disabled and medical care for the elderly.

2. National defense, veterans, and foreign affairs: About 19% of outlays were to equip, modernize, and pay our armed forces and to fund national defense activities; about 3% were for veterans benefits and services; and about 1% were for international activities, including military and economic assistance to foreign countries and the maintenance of U.S. embassies abroad.

3. Physical, human, and community development: These outlays were for agriculture; natural resources; environment; transportation; aid for elementary and secondary education and direct assistance to college students; job training; deposit insurance, commerce and housing credit, and community development; and space, energy, and general science programs.

4. Social programs: About 14% of total outlays were for Medicaid, food stamps, temporary assistance for needy families, supplemental security income, and related programs; and the remaining outlays were for health research and public health programs, unemployment compensation, assisted housing, and social services.

A couple of notes:

Holy crap! The percent borrowed of the budget is almost the same as the % obtained through personal income taxes. !!!

I thought the % of the budget that was interest on the debt was much higher, like 15% or 20%. Of course, as the budget has gotten bigger, the interest as a percentage shrinks. It's like if I budget $10,000 one year and have %1000 in interest, that's 10% of my expenses, but if I budget $20,000 the next and my interest is $1500, that's only 7.5%.

Also, interest rates are still really, really low. And, at some point back in the "roaring 90's", most of that debt got shifted from stable, long term notes to potentially more volatile, but (for now) lower interest short term notes. That was the big reason we had a "budget surplus" for a while there. Didn't take long to figure out how to spend that extra money, though...

volvoclearinghouse wrote: ...I thought the % of the budget that was interest on the debt was much higher, like 15% or 20%. Of course, as the budget has gotten bigger, the interest as a percentage shrinks....

Along similar lines, the debt decreases, as a percentage of the budget / gdp, as inflation rises.

What happen to the HUGE debt created by WWII? It's still there, it just VERY small in today's numbers because of inflation.

Inflation effectively erases debt. Strange but true.

Corporate income tax is only 7% lolololololololololol.

HiTempguy wrote: Corporate income tax is only 7% lolololololololololol.

But corporations are people! So shouldn't it be with the 32% of Personal Income Tax?

Cone_Junkie wrote:

HiTempguy wrote: Corporate income tax is only 7% lolololololololololol.

But corporations are people! So shouldn't it be with the 32% of Personal Income Tax?

You read my mind, I was actually going to post the same thing!

I would assume that the thought process is that since there are "only" around 1,560,000 business registered in the US (some of those approaching having a higher gross revenue then a whole states GDP I reckon), that's why the % is so small...

OR, like Canadian Business recently said (in regards to Canada), there are plenty of large businesses that are paying ~1 to 7% "tax". Probably has more to do with this.

Everyone, business and people should be taxed the same. Its bullE36 M3 otherwise. As for someone saying corporate tax rates were among the highest in the world in the US, yea, sure they are, but nobody pays them.

HiTempguy wrote:

Cone_Junkie wrote:

HiTempguy wrote: Corporate income tax is only 7% lolololololololololol.

But corporations are people! So shouldn't it be with the 32% of Personal Income Tax?

You read my mind, I was actually going to post the same thing! I would assume that the thought process is that since there are "only" around 1,560,000 business registered in the US (some of those approaching having a higher gross revenue then a whole states GDP I reckon), that's why the % is so small... OR, like Canadian Business recently said (in regards to Canada), there are plenty of large businesses that are paying ~1 to 7% "tax". Probably has more to do with this. Everyone, business and people should be taxed the same. Its bullE36 M3 otherwise. As for someone saying corporate tax rates were among the highest in the world in the US, yea, sure they are, but nobody pays them.

That's only because working stiffs can't afford the lawyers, accountants, and lobbyists to even the playing field