Darth, it's our archaic tax code. Everyone who files a tax return gets a standard deduction based on their marital status and how many dependents they have. There is a set minimum deduction regardless of the income you make. It's not as skewed as you make it out to be. My daughter worked full-time last year during the summer, and made around $7,000 in income. She filed single and took whatever the standard deduction was, filing a 1040EZ. I think she paid somewhere around $600 - $700 in taxes. She went click, click, click on TurboTax's online filing system, and got a refund of a whopping $35 or something like that. Is that your definition of "transfer of wealth"? Should she have become your model Conservative citizen and foregone filing her taxes, telling the IRS "No you keep my $700. I want pay my part to keep this country running." Meanwhile, Mitt Romney is stashing millions of his earnings in bank accounts in Switzerland and the Caymans, and ends up paying an effective tax rate of around 15%. You're ideology is, "Good for him. He stilled payed millions in taxes. That's his fair share." So why is it OK that someone makiing under $50K should dole out every dollar that was deducted from their paycheck to pay their "fair share", simply because they don't have the luxury of hiding their earned income in offshore bank accounts, charitable contributions, or flawed capital loss credits? My wife and I make well over 6-figures per year, but after taking the standard deductions, my effectibe tax rate is 15% - 17% every year. Last year, I got a refund of over $4,800. Is that my fair share, or should I pay more and return my refund?
federal income tax withholding on the sum of 7000 dollars would be less than 300 dollars. this is how i know you skew and lie about your figures. it amazes me a fellow business owner making 6 figures knows so little about the tax code. you are also lacking some pertinent information regarding your own return...such as if you paid in more than the standard rate and so on. also how you filed....business deductions and so on. see those of us that actually understand the tax code and how it works are not angry or blinded by such things. you look at the end result and that is it. i look at how the end result was acquired and assess that.
people like you are the same people that get mad when a corporation profits greatly. not understanding that under federal law they are unable to retain those earnings...it must be divided amongst stock holders, return back into the business in investments or expansion or one other option which escapes me at the moment. basically when a corporation profits this is a good thing...especially for those of us investing our retirement and 401kit in these types of companies. when corporations profit...i profit.