US Income Tax: Did you know...

[Crissa]

It's tax day here in the US.

I did out taxes with an online services this year. In two years, we won't be allowed to file by mail anymore. And this year, anyone making more than half in the states isn't allowed to file for free.

(They also lowered the limit at which you must file, reduced audits on corporations to its lowest, and audit people making the least more than any other income group... But that's just our administration making sure they do their class warfare bit that we're not supposed to talk about.)

Anyhow, the state required that we file jointly for our Domestic Partnership. I was looking forward to this, as it meant we'd be able to count both of us as living off the larger income, so we'd probably get a refund this year. The online system helpfully required we fill out a joint Federal form, from which it would fill out our state form. The joint Federal form then wouldn't be filed, but was just for the program...

And so I found out that we were required to pay more than five thousand dollars more in federal taxes than a married couple would. In addition to that, we each didn't qualify for the Rebate this year of $600.

That means my spouse and I paid a little more than $6,500.00 in taxes this year alone, just because we were not allowed to 'marry'.

-Crissa

[Fwib]

Have you considered moving to a location that does treat Domestic Partnership the same as Marriage for tax purposes? Or is that idea a total non-starter?

[Josh_Kablack]

While I sympathize for you here as both a matter of principle (that ain't none of the government's business) and pragmatism (folks oughta be able to file with the same status on all tax returns).

As a former tax preparer, I must urge you to get your facts straight before making these sorts of arguments. There is too much tax misinformation out there already, and it is frequently used to make arguments for very bad policy arguments.

(They also lowered the limit at which you must file,

This is outright bullspoon.

As per 1040 instructions, page 7
http://www.irs.gov/pub/irs-pdf/i1040gi.pdf

You MUST file if:

• Earned income exceeded your standard deduction + exemptions (none of which have gone down, most of which have gone up)
• Self-Employment Income exceeded $400 (same as in tax year 2005)
• You had wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer social
  security and Medicare taxes. (same as in tax year 2005)
• Unearned income (such as interest) was over $1900 (this was only $800 in tax year 2005)

Now the tax code is crazy complex, so you may be, or be able to find some edge case where the limit for who must file went down, but I assure you that is not the case for most folks.


*****


As to your larger points, the "class warfare" happens at the state and local level, at least around here. Federal taxes are "cut" so federal aid evaporates, and state and local governments must find new revenue streams to fund truly essential services and infrastructure maintenance. The most politically palatable such revenue sources are regressive taxes, such as:

• increased local sales taxes - which are a flat percentage of in-state consumption
• user fees for various services, such as permits, licenses, tolls, fares - which are all flat dollar amounts.
• and various "sin taxes" on booze, smokes and other products disproportionately consumed by those in lower income brackets.

Needless to say, replacing revenue from a (largely) graduated federal income tax with revenue from these types of sources shifts more of the tax burden onto the backs of the working class and working poor.

This happens and the federal politicians get to claim that they have"cut taxes" because federal income taxes have been cut at the higher end, and still blame our state and local politicians for being "tax-and-spend" democrats.

By the way, the biggest issue at the state level right now is not fixing our collapsing bridges, leaky sewage or patchwork of crazy property tax jurisdictions, but is instead getting a referendum on the fall ballot to amend the PA constitution to, you guessed it, "define marriage as the union of one man and one women" - nevermind that PA law already does that, we gotta stop those "activist judges" - nevermind that there is no pending case in PA that could challenge the existing law. Can you say "shameless attempt to mobilize the base in a swing state during a presidential election year" ?

[Josh_Kablack]

Have you considered moving to a location that does treat Domestic Partnership the same as Marriage for tax purposes? Or is that idea a total non-starter?

Since the issue is Federal Taxes, that would mean leaving the country, which is not something one can do lightly.

[Crissa]

Kablack... I don't understand your argument against the class warfare. I mean, I understand the state one - many states in the east and south have highly regressive taxes compared to out here in the west.

Those numbers you quote are lower than they were last year. Lower than they were five years ago. Earned income is now $3000, in 2000 it was $5000.*

Unearned income was higher in... uhh, whatever year it was that I won my television - because it was my only unearned income that year, I didn't have to pay tax on it, but most people who won did.

-Crissa

*This is, of course, with the caveat that I may be wrong. But the part about the rebate and refund is true.

[Crissa]

PS...

Fwib, where would that be, this magical place one could move to and pay taxes in where it's fair and one's living arrangements are honored?

-Crissa

[Koumei]

Try Europe. I hear it kicks the shit out of America in pretty much every category, from adult literacy to infant survival rates.

[JonSetanta]

Try Europe. I hear it kicks the shit out of America in pretty much every category, from adult literacy to infant survival rates.

I was going to counter that with a big, fat, "And what about the language barrier, Koumei?" and then remembered the difficulty I had in communicating with east-Baltimore whites and mid-Baltimore blacks in my last job.
They live in the same fucking city, they were born here, they were raised here, and still give a "huh?" when I ask them a question.
Go to different states and you're entering a whole new world. Might as well be separate countries.
So much for shared American language.

So, yeah, I guess it is better. In Europe the kids learn English, not 'Pidgin Latino' or 'Honkytwang' or 'Eubonics'.

[Crissa]

Most European countries don't accept immigrants.

...I don't think being charged a tithe more in taxes would be considered onerous enough for asylum.

-Crissa

[PhoneLobster]

Haha, I have dual citizenship so I can go back to the old country any time I like. And they are now part of the EU!

Except that my insane uncle is out there, and is insane, and arguably one of the most powerful and famous criminals in the nation, and he carries a gun, and a bag of treasure (really). (Edit: Though I could always take the opportunity to tag along when my Dad next goes out there to try and help out next time he is in court over a gun fight or refusing medical treatment for gang green or whatever the next zany antic he gets up to might be)

Still its a great tourist spot, I particularly like that it has some of the oldest and most numerous (and highest density) megalithic temples in the Mediterranean. And at least one of the most interesting ones ever discovered.

Anyway, I'm not actually sure Malta even has legalised divorce (though their EU relationship must surely be changing that?) and same sex marriage is probably out. Still the place runs on pure lies and corruption so getting your tax return is a simple as not telling the government about your second or third job, and lying about the income on the first one. At least that's what the locals all do...

[Fwib]

Except that my insane uncle is out there, and is insane, and arguably one of the most powerful and famous criminals in the nation, and he carries a gun, and a bag of treasure (really)

Sounds like the gnome: "I have this treasure to give out to adventurers!"

[Crissa]

I wanna vent some more.

-Crissa

[JonSetanta]

Most European countries don't accept immigrants.

Really now.
Then what about the Arab invasion? Are they refugees?
One year ago a Welsh guy told me that the U.K. isn't a nation these days as much as it could be considered a giant tourist attraction for other countries.
"There's a big debate over whether or not it's still a nation."
The battle between Arab special interest groups and Swedish government makes me lol (such as petitioning for segregated public pools, which was of course shot the fuck down.) but really, the E.U. should be more concerned about the constant loss of population than maintaining the traditional racial/cultural inbreeding, uh, I mean 'purity'.

[Crissa]

They're guest workers at best, tolerated underclass at worst. Most are refugees, yes. Those who are born there to guest workers officially have no country, and are kinda stuck. They yearn for the day that they're accepted as citizens, and are limited in the choices they can make re: work and politics.

The western world 'needs' people willing to work for shit wages, else what we have won't come for as cheap as it does. Those guys arguing against a minimum wage? They already don't pay these guys that much. It's darn near criminal, though it has gotten better in the last couple of decades... But that's by no means 'good'.

-Crissa

[ckafrica]

Canada allows you to legally marry. It's tax laws are not less class oriented but they do allow homosexual marriages with the assumed benefits entailed. If you have a useful skillset and kind find work it is not impossible to get a work visa and eventual citizenship within a few years coming from the US.

What is pissing me off is they won't let me bring my Vietnamese girlfriend over to even visit my family because she is too poor.

[Crissa]

Yeah, my girlfriend could go to Canada, but I could not. Fun.

-Crissa