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AZLD4Candidate

(6,455 posts)
Mon Jan 13, 2025, 05:27 PM Jan 13

MAGAt 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.

23 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
MAGAt understanding of income tax. Told today only 60% of people pay income tax. (Original Post) AZLD4Candidate Jan 13 OP
You know-it-all! How could you tell the man FACTS? Callie1979 Jan 13 #1
So basically you made his argument for him SickOfTheOnePct Jan 13 #2
Since The Standard Deduction Is $14,600... ProfessorGAC Jan 13 #7
But it isn't just the standard deduction SickOfTheOnePct Jan 13 #8
That's Fair ProfessorGAC Jan 13 #11
The $14,600 is for a single filer. MichMan Jan 13 #9
Fully Aware ProfessorGAC Jan 13 #10
Good job Clouds Passing Jan 13 #3
Normally, I just roll my eyes and ignore it. But I can't anymore. AZLD4Candidate Jan 13 #5
I'm getting a little lippy in public. Asking why havent these egg prices gone down yet, what is dump waiting for?! Clouds Passing Jan 13 #6
gas prices here in western pa just jumped 25 cents in a week. when with agent orange lower my gas prices???? AZLD4Candidate Jan 13 #12
Everyone needs to harp on him being a titanic failure durablend Jan 13 #13
And the scary thing about these people? They are attempting to make law, when they even don't know what the law SWBTATTReg Jan 13 #4
It just goes to show you that Mblaze Jan 13 #14
You typical liberal know-it-all IronLionZion Jan 13 #15
Where are the made up Articles coming from? SleeplessinSoCal Jan 13 #16
I enjoyed reminding one who complained about Democrats taxing social security... off-the-clock Jan 13 #17
And small businesses are exempt from income taxes because the small business tax isn't income tax LiberalArkie Jan 13 #18
"Know it all" liberals vs "know nothing" conservatives ThoughtCriminal Jan 14 #19
Tax preparers are a waste of money Mosby Jan 14 #20
Every person audited by the IRS and had to do an Offer in Compromise all said that before the IRS pinged them AZLD4Candidate Jan 14 #21
Come on man. Mosby Jan 14 #22
Simple returns get messed up and audited too. AZLD4Candidate Jan 14 #23

SickOfTheOnePct

(7,639 posts)
2. So basically you made his argument for him
Mon Jan 13, 2025, 06:02 PM
Jan 13

If someone gets all of their withholding back, then they aren’t actually paying income tax.

I don’t know what the actual percentage is, but there is certainly a percentage of wage earners who don’t pay income tax.

ProfessorGAC

(71,475 posts)
7. Since The Standard Deduction Is $14,600...
Mon Jan 13, 2025, 07:02 PM
Jan 13

...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)
8. But it isn't just the standard deduction
Mon Jan 13, 2025, 07:06 PM
Jan 13

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 it’s 40% who pay no income taxes, but I’m betting it’s 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. I’m 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)
11. That's Fair
Mon Jan 13, 2025, 07:13 PM
Jan 13

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.

ProfessorGAC

(71,475 posts)
10. Fully Aware
Mon Jan 13, 2025, 07:12 PM
Jan 13

Hardly changes the point.
The preponderance of the next 2 strata, equaling 13.4% are single income households.
The numbers are easy to find.

AZLD4Candidate

(6,455 posts)
12. gas prices here in western pa just jumped 25 cents in a week. when with agent orange lower my gas prices????
Mon Jan 13, 2025, 07:15 PM
Jan 13

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)
13. Everyone needs to harp on him being a titanic failure
Mon Jan 13, 2025, 07:23 PM
Jan 13

When those egg and gas prices don't come down next Tuesday.

"WHAT THE HELL IS HE DOING THEN?"

SWBTATTReg

(24,742 posts)
4. And the scary thing about these people? They are attempting to make law, when they even don't know what the law
Mon Jan 13, 2025, 06:10 PM
Jan 13

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.

IronLionZion

(47,455 posts)
15. You typical liberal know-it-all
Mon Jan 13, 2025, 07:28 PM
Jan 13


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.

off-the-clock

(244 posts)
17. I enjoyed reminding one who complained about Democrats taxing social security...
Mon Jan 13, 2025, 07:51 PM
Jan 13

...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)
18. And small businesses are exempt from income taxes because the small business tax isn't income tax
Mon Jan 13, 2025, 08:10 PM
Jan 13

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.

Mosby

(18,046 posts)
20. Tax preparers are a waste of money
Tue Jan 14, 2025, 05:29 PM
Jan 14

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)
21. Every person audited by the IRS and had to do an Offer in Compromise all said that before the IRS pinged them
Tue Jan 14, 2025, 05:47 PM
Jan 14

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)
22. Come on man.
Tue Jan 14, 2025, 06:16 PM
Jan 14

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)
23. Simple returns get messed up and audited too.
Tue Jan 14, 2025, 06:33 PM
Jan 14

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?

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