General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsMAGAt understanding of income tax. Told today only 60% of people pay income tax.
And small businesses are exempt from income taxes because the small business tax isn't income tax so no small business needs to declare profit or loss to the IRS. The IRS is just there to go after tax paying people so it needs to be abolished. Also told me that the Constitution requires us to be on the gold standard.
Now, I am an economics teacher but I am taking over my father's tax preparation business as he is retiring and handing it over to me as soon as I pass the Enrolled Agent's exam from the IRS, so I am working with him for the next three tax seasons to learn the business and prepare for the exam.
I had to give it to the MAGAt. So I had to first ask about the gold standard, so I said "you're right. It's in Chapter 11 of the Constitution." The MAGAt said I knew what I was talking about. I then said "Article 11 talks about making Christianity the official religion of the country and Christmas a national holiday." He actually agreed. So I couldn't take it,pulled out my phone, pulled up the Constitution and said: "I teach social studies. There are only seven articles." He said was in the last one. I said "that just ratified the Constitution. Getting desperate he said it was in the amendments. I asked which of the first ten. He looked blankly and said "ummm, seven I think." I said "that's the jury trial one. Try again? He then said it was the 17th, obviously desperate. I said "nope. direct election of senators."
At that point, he took his stuff in a huff and started to walk away angry. I had to go in for the kill.
So I shouted out: "Under Trump's tax cuts, the 10% bracket for all filing statuses starts at $0. The 12% bracket stops as high as $94,300 depending on filing status. This means all wage earners pay income tax. If their income is lower than the standard deduction, they get it all back this time a year. What are you talking about?"
He muttered something about being a typical liberal know-it-all and stormed away in a huff. The people at the grocery store couldn't stop laughing.

Callie1979
(521 posts)You KNOW they're not used to facts..
SickOfTheOnePct
(7,639 posts)If someone gets all of their withholding back, then they arent actually paying income tax.
I dont know what the actual percentage is, but there is certainly a percentage of wage earners who dont pay income tax.
ProfessorGAC
(71,475 posts)...and in 2023, only 7.4% of household earned less that $15k, then the actual number is 7.4% or less.
From a practical standpoint, he did not prove the guy's point.
That idiot's 60% was off by a factor of >8.
SickOfTheOnePct
(7,639 posts)There are also any number of tax credits, including much needed refundable tax credits, that can take taxable incime to or below zero.
So no, I doubt its 40% who pay no income taxes, but Im betting its higher than 7.4%.
I should have been more clear in saying that the point is that there are wage earners who pay no income tax. Im completely fine with that, but for a tax professional (the OP) to state that no one pays no income tax is a bit disturbing.
ProfessorGAC
(71,475 posts)You or I can get away with rough estimates. A licensed preparer should be more precise.
That said, people living on $20k a year and paying no taxes are hardly the path to a balanced budget & expecting people wuth nothing to pay more is reflective of their lack of empathy.
MichMan
(14,064 posts)It is doubled for two adults living in a household.
ProfessorGAC
(71,475 posts)Hardly changes the point.
The preponderance of the next 2 strata, equaling 13.4% are single income households.
The numbers are easy to find.
Clouds Passing
(3,522 posts)
AZLD4Candidate
(6,455 posts)Clouds Passing
(3,522 posts)AZLD4Candidate
(6,455 posts)He said it would be done in the first 24 hours with a phone call. probably a perfect, beautiful phone call.
durablend
(8,196 posts)When those egg and gas prices don't come down next Tuesday.
"WHAT THE HELL IS HE DOING THEN?"
SWBTATTReg
(24,742 posts)is. Morons. Every time I have talked to a MAGA, they are never in control of their facts, and usually just make stuff up or repeat stuff that's made up by others, and none of it is true. They tailor the facts to suit their crazy arguments.
Mblaze
(469 posts)MAGA politics mostly spring from misinformation and sulky resentment.
IronLionZion
(47,455 posts)



Reality has a well known liberal bias. That's why MAGAts have to make up alternative facts. We don't need taxes because Mexico already paid for the wall. Deporting farm workers will lower grocery prices. Duh. You're just too liberal to understand these simple concepts.

SleeplessinSoCal
(9,856 posts)
off-the-clock
(244 posts)...that social security benefits are taxable because Reagan signed them in. Enjoyable because of the reaction (shock).
Hey good luck on your exams and I hope you enjoy being enrolled agent. It's actually quite a lot of fun hearing about other people's lives and helping them do a required task that's difficult for them and easy for you.
-EA in Tennessee
LiberalArkie
(17,237 posts)That is the way it is here in the south with all the Yard people and other cash people and now with the Cash app they can take credit cards.
I know of several people with many rental homes. The renters that pay in cash never hit the books. The repair people are paid in cash and never have deductions take out..
A whole economy out there that have never been in the tax system, never had workmen's comp, social security or medicare taken out.
ThoughtCriminal
(14,408 posts)In terms of debate, this is NFL vs sand-lot tag football.
Mosby
(18,046 posts)It's a shame how many low income people use tax prepares, software is better and cheaper, and the IRS has a free service now for simple returns.
AZLD4Candidate
(6,455 posts)Amazing how software and Dr. Google has taken the place of knowledge and research.
Following your logic, we don't need teachers either. Online conduits are much cheaper.
We don't need cashiers. Those automated ones work fine
We don't need bankers. That's what the ATM is for
We don't need stockbrokers. That's what those websites are for
We don't need artists, writers, or singers. AI can do that for us.
Sad how people think software, websites, and technology take the place of expertise.
Mosby
(18,046 posts)The large majority of Americans have very simple returns. It doesn't require any expertise.
I used to own a business. My accountant charged $750.00 for my return and it was worth evey penny.
AZLD4Candidate
(6,455 posts)But you do you.
Most Americans have a car. Why use taxis and uber?
Most Americans have kitchens. Why have cooks and chefs?
Most Americans have Google. Why have libraries?