The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants

Half of All Americans Don’t Pay Income Tax to Uncle Sam

3 Responses

1. Physician Financial Planner, on March 15, 2012 at 5:40 PM said:

   Taxing

   And of the half of all Americans that don’t pay income taxes a large number of them receive money from the Government at tax time in the form of the Earned Income Credit, often to the tune of several thousand dollars to assist the large number of working poor we have in this country.

   The media and others often misreport the above “half of all Americans don’t pay income taxes” as “half of all Americans don’t pay taxes” which of course is incorrect. It is almost impossible to not pay taxes in the USA, even if you are homeless. Even that “dollar menu” item bought at McDonalds comes with a 4% to almost 9% State sales tax, unless you live in Montana, Delaware, Oregon or New Hampshire.

   Consider also the many other taxes:

   * Fuel Tax (in January 2011 motor gasoline taxes averaged 48.1 cents per gallon)
   * Capital gains tax
   * Corporate tax
   * Social Security tax
   * Property tax
   * Estate tax (Many more Americans likely to get hit with this as the exclusion drops)
   * License fees (tax) which includes vehicles and many businesses
   * Environmental tax (gas guzzler tax, carbon tax)

   As an owner of a business, I get to also pay employee unemployment taxes and payroll taxes regardless of the profit or loss of the business.

   Remembe,r all businesses must include all the forms of taxes that the business pays as part of the costs of their goods and services. Therefore, at the end of the day, if you purchase anything from a legitimate business you have offset (paid) most likely a number of taxes. Yes, even those 1/2 of all Americans that don’t pay income taxes (yet most likely spend thousands of dollars each year paying other taxes) also pay income taxes indirectly by doing business with profitable companies.

   That dollar menu soda I bought last week at McDonalds and paid $1.07 for covered the cost of Utah State/County/local Sales tax (totaling 7 cents), as well as paying a portion of the $ 1,536,200,000 in Federal and State Income tax that McDonald’s Corporation has in provision to pay (based on their Annual Report ending 12/31/2011).

   In fact McDonalds has paid north of $1 billion in US Federal and State income taxes around an effective rate of 30% consistently for years now. Where do they get this money? I would bet you mostly from those 1/2 of Americans that “don’t” pay income taxes.

   David K. Luke MIM
   http://www.physicianfinancialplanner.wordpress.com

   LikeLike
2. Dr. Cromwell, on March 20, 2012 at 4:57 PM said:

   IRS Flags Almost 2 Million Tax Returns in Anti-Fraud Efforts

   Mr. Luke – Did you know that the IRS has identified and started reviewing almost 2 million returns for possible fraud, according to Deputy Commissioner Steven Miller who appeared at a recent Senate subcommittee meeting … frightening!

   http://www.fa-mag.com/fa-news/10347-irs-flags-almost-2-million-tax-returns-in-anti-fraud-efforts-.html

   Dr. Cromwell

   LikeLike
3. Ann Miller RN MHA, on March 25, 2012 at 1:01 PM said:

   Tax Fraud ID Theft Growing

   Senator Bill Nelson (D-FL) spoke during a March 20 hearing of the Senate Finance Subcommittee on Fiscal Responsibility and Economic Growth. The focus of the hearing was on identity theft (ID) and the strategy of many thieves who request fraudulent tax refunds.

   Florida has been prominent in the ID tax fraud cases. Sen. Nelson stated, “Instead of stealing cars or selling illegal drugs, more and more criminals are looking with envy at the ease with which tax fraud can be committed anonymously. All the fraudster has to do is file a false return electronically and then have the tax refund loaded onto a prepaid debit card.”

   IRS Deputy Commissioner for Services and Enforcements Steven Miller indicated that the IRS discovered approximately $14 billion in 2011 fraudulent refund requests. At least $1.4 billion of this amount involved identity thieves. During the past four years, over 460,000 taxpayers have been impacted by identity theft.

   The Federal Trade Commission (FTC) also has reported increasing numbers of identity theft cases. During the past five years, identity theft has become a greater problem than credit card fraud. By 2011, there were 39,000 cases of credit card fraud but 67,200 cases of identity theft.

   Tampa, Florida Police Department Detective Sal Augeri testified at the hearing. He stated, “Criminals are stealing hundreds of millions of dollars from hard-working Tampa taxpayers and I’m only aware of what’s going on here in Tampa.”

   Augeri explained that tax fraud is a nationwide issue. He also observed that the IRS was “of little assistance in these investigations” because it is not permitted to transfer information to local police.

   The hearing was conducted to discuss a bill sponsored by Sen. Nelson. The Identity Theft and Tax Fraud Prevention Act is designed to “give the IRS and identity theft victims the means to better detect and prevent this disastrous offense.”

   The bill would increase penalties for identity theft, allow the IRS to share information with state and local authorities, secure the Social Security numbers of deceased Americans, allow identity theft victims personal identification numbers or permit them to opt out of electronic filing of tax returns.

   National Taxpayer Advocate Nina Olson spoke at the hearing and urged caution. She stated that we also need to protect taxpayer privacy. Olson pointed to the ability of a taxpayer to consent to disclosure of returns by the IRS so that information can be transferred to state or local law enforcement authorities. She stated, “Under this exception, the IRS may develop procedures that would facilitate sharing of identity theft information with state and local law enforcement agencies.”

   Source: Children’s Home Society of Florida Foundation

   LikeLike