What do you think about the Fed Taxes you pay?

[Deleted]

Our effective rate is a little over 30%. I feel like that is about right. I don't think we should pay less.

[Deleted]

^ Mostly when it comes to issues of tax funding, I wish we could reallocate what we already have coming in. More towards social services and less towards the military and big business subsidies. At least start with that and see where we end up.

[SJ]

I don't think it's too high in a broad sense. I think we deserve to pay taxes, and I am aware of how the system works.

However, it is still a staggering number and those checks are never fun to write.

I do think that the tax code could use some major overhauling.

[Susie]

I don't really have feelings about the dollar amount or the rate in an absolute sense. I don't dwell on it, because it's not something I can do much about.

My feelings are more relative, in that I feel my tax rate is too high relative to folks who are able to take advantage of low capital gains tax rates to build more wealth than I could hope to work for, and potentially too low relative to the needs of certain government programs.

I also call bullshit on a variety of deductions that do and don't exist -- mortgage interest yes, but SL interest no or minimally? Rationale please? I don't particularly like the idea of promotion of lifestyle choices through the tax code.

[raangoli]

I feel like Goldilocks, but I do think it's just right with respect to our income. I agree with PPs that the allocation of where these tax dollars go could use an overhaul.

[msmerymac]

I'd be willing to pay more for certain expenditures. I think many things are underfunded and as a society we should work together to ensure that they are not.

[lishie]

We've been slammed with the AMT the past two years. I'm fine with the taxes taken from our salary, and what we owe on our investments, but I hate paying more than that due to AMT. We don't even have a ton of deductions and it gets us.

[tacosforlife]

I am fine with the amount I pay in taxes. It's my usurious student interest rate that kills me. I pay about as much on my SLs as I do in federal income tax. And because I didn't join the Feds until 5 years out of law school, my loan forgiveness is a joke - it is likely going to save me only 12 or 13 payments.

6.32 percent can go fuck itself.

[audette]

I was going to say "just right". But, then I looked again at out effective tax rate. Yeah, no. We pay ridiculously little in federal taxes. I mean, it's in line with the taxes paid by folks that earn similar amounts, but it's a fairly small percentage, all things considered.

[teengirlsquad]

I feel like I pay too much. I am single with no kids, but I make less than $25,000 before taxes. After taxes I think I take home around $1600 a month but I only get a refund of about $400 a year. I make enough to live on and save a small amount, but things are tight. If I got to keep a little more a month it would make a difference.

[v]

I wish I paid a lot less (as does everyone?) but as long as the money is being spent well I'm okay with paying what I owe under the current system. I want education and housing and safety and roads and such for everyone, so taxes are a necessary evil.

I imagine the money isn't really being spent all that efficiently, but alas...

[Mushe]

I try not to dwell on the figure or percentage, but, in general, I am okay with what we pay in taxes because we've been so fortunate in our lives, and I believe that we should be paying in to the system to help those that need assistance. I'm sure the money could be used more efficiently, but I think there's also a tipping point where trying to put tighter controls ends up costing more anyway.

[Poppy]

I think living in the US is a steal. Would I allocate the money differently if I were in charge of the budget? Yes. Would I change the way taxes are calculated (eg the regressive FICA as noted by @choco)? Yes. But overall, I am grateful for all the "amenities" that the government provides and I am glad for the social safety nets that we have in place. In fact, I would like to see the government expand many of its programs.

[LoveTrains]

I get frustrated at some of the tax breaks that I know others can take advantage of that aren't applicable to me, but overall I think what I pay is fine. I think that it is kind of messed up that some wealthier people pay a smaller percentage and I think we need to overhaul the system to be more progressive. I'm all for more brackets at the top.

[Deleted]

I'm good with my fed tax rate, but agree with others about allocation. The part that is a little hard to stomach is the Fed + State + State disability + FICA (which will likely not be around to help when I am old enough to benefit). All of that equals a crapton of money.

[BirdGirl]

Is the idea with FICA that there is a cap on the benefit (ie SS) on the other end, so there's a cap on the front end? I never gave it much thought, but that would make sense (as much sense as any of this makes to me).

[BirdGirl]

Dollar wise we pay a lot in taxes, but percentage wise it seems fair. I actually think most people should pay more, but I think we should have more transparency in spending too.

[explorer2001]

Considering my income as a single person and my low -ish effective tax rate, I feel like I should pay more in some ways but I also feel like the shift of various burdens to the states that used to be federally funded is problematic. Especially as states are going bankrupt while the federal government's collections aren't reduced or shifted to the stares in parity with the shift in burden for providing services.

I could go on as a tax policy junkie but I'll leave it here for now.

[rubytue]

I'm content. I think we get a lot for our taxes. If you haven't looked before, go here and see how your tax burden breaks down. whatwepayfor.com

FWIW, would rather pay more taxes and have better social programs. Namely health care (assuming my payroll deduction would switch from my health plan to taxes for it). I like the European model.

Infographic from www.forbes.com/sites/niallmccarthy/2015/03/19/the-countries-with-the-highest-income-tax-rates-infographic/

Attachments:

[Deleted]

I think so much of it is wasted that it is too high.

[sfy]

I'd say just right, probably since it's what I'm accustomed to, but if I had to lean left or right, I'd say too little. Agree with many above that I'd prefer it be allocated in a more transparent, and likely better, way. I also would pay more for more and/or social services.

[aurora]

I'm OK with our tax rate, and I'd be OK paying more for more environmental and social programs (though I wish environmentally-damaging companies would pay more first).

[aurora]

Aug 3, 2015 13:24:53 GMT -5 @adobeclay said:

I think so much of it is wasted that it is too high.

Non-snarky: where do you thinks the biggest wastes are?

[Poppy]

Aug 3, 2015 12:38:55 GMT -5 BirdGirl said:

Is the idea with FICA that there is a cap on the benefit (ie SS) on the other end, so there's a cap on the front end? I never gave it much thought, but that would make sense (as much sense as any of this makes to me).

Yes, I believe that's how the cap is justified. However, the result is that the overall tax rates are less progressive.



Source: pgpf.org/budget-explainer/taxes

Of course you can argue about whether that's more "fair."

In my perfect world, taxes would be greatly simplified, and as part of that simplification, SS would be treated as other programs instead of this weird pension-like thing that's separate from the rest of the budget. And in the process, we'd get a smoother and more transparent progression in taxes relative to income.

[niq]

First off let's just set the FICA taxes aside since until you're in FWP income territory, everyone gets out roughly what they put in (@birdgirl). So then the question is federal income taxes. I could stand to pay a little more if it went to things I liked, such as

* paid family leave
* less time spent on the phone arguing with health insurance companies (i.e. real single payer or something like it)
* better quality of service for social services
* somehow bribing NIMBY homeowners to accept higher levels of density so that more people can afford to live closer to growing cities where there are jobs
* wage insurance and other measure to help prevent people from being unemployed long term or just leaving the workforce altogether
* trains everywhere! LOL

Also while we're at it, I might as well wish for a pony.

[niq]

Aug 3, 2015 14:30:08 GMT -5 Poppy said:

Aug 3, 2015 12:38:55 GMT -5 BirdGirl said:

In my perfect world, taxes would be greatly simplified, and as part of that simplification, SS would be treated as other programs instead of this weird pension-like thing that's separate from the rest of the budget. And in the process, we'd get a smoother and more transparent progression in taxes relative to income.

This brings up one of my favorite pet peeves (that I'm sure you're aware of), which is that the tax rate has nothing to do with tax complexity/simplicity. You could have your tax rate be the function of a logarithm of a cubic equation of your income and it would still be simple -- it's the part where define what's "income" and tax different income differently that's complicated.

"oh your traditional IRA contribution isn't really income until you withdraw it; neither is the paycheck deduction for your health insurance (but only for income tax purposes, not for FICA purposes!); you can give to charities and that's income but you won't be taxed for it (but if you're too rich you'll be taxed a little); oh your income from stock sales is taxes (but if you sold taxable investments you are probably already pretty rich already so just hire a damn accountant already); oh you bought a hybrid car? Cool here's some money...; hey here's this neat program that lets you not pay taxes on some child care and health care expenses; oh wait you made a lot of money and you live in NJ/NY/CA GO DO ALL YOUR TAXES AGAIN WITH NEW NUMBERS AND RULES".

[aurora]

Aug 3, 2015 15:07:57 GMT -5 niq said:

Aug 3, 2015 14:30:08 GMT -5 Poppy said:

In my perfect world, taxes would be greatly simplified, and as part of that simplification, SS would be treated as other programs instead of this weird pension-like thing that's separate from the rest of the budget. And in the process, we'd get a smoother and more transparent progression in taxes relative to income.

This brings up one of my favorite pet peeves (that I'm sure you're aware of), which is that the tax rate has nothing to do with tax complexity/simplicity. You could have your tax rate be the function of a logarithm of a cubic equation of your income and it would still be simple -- it's the part where define what's "income" and tax different income differently that's complicated.
...

Very good point. I loved that the year I worked (partly) in Denmark, paid by a Danish organization, the Danish tax agency computed my taxes for me based on their records! I then got to review the forms and, if I agreed, send in my tax or await my refund. If I disagreed, I could have filed an amendment.

In the end, I owed the equivalent of about $0.50, which they forgave since it would cost more to collect.

[Deleted]

Aug 3, 2015 14:12:42 GMT -5 aurora said:

Aug 3, 2015 13:24:53 GMT -5 @adobeclay said:

I think so much of it is wasted that it is too high.

Non-snarky: where do you thinks the biggest wastes are?

Ineffective systems , management, and no oversight.

[cjeanette]

Federal doesn't bother me. I think it is about right.

It's state that I have an issue with.....

[niq]

Aug 3, 2015 16:27:40 GMT -5 @adobeclay said:

Aug 3, 2015 14:12:42 GMT -5 aurora said:

Non-snarky: where do you thinks the biggest wastes are?

Ineffective systems , management, and no oversight.

Riiiiiiight, because the private sector is so famously efficient. I'm sure there's no waste in the typical Fortune 500 company's T&E budget. Do feds even get continental breakfast at events now, or is that completely gone now thanks to Fox News?