The old tax plan that was just “overhauled” was literally ridiculous. Let’s ask the most fundamental question. Why does a government “tax” its citizens? By definition it is a means by which governments finance their expenditures by imposing charges on citizens and corporate entities. Therefore, as in my case, I pay the government money each year “to finance their expenditures” – I am not required to agree with the “expenditures,” but I am required to “finance” them or face fines and/or imprisonment. Now, wherein does that definition indicate that the government process of “taxation” would result in greater “expenditures” or that instead of imposing charges on citizens, they would, instead, give money to the tax payer?
Did the new Republican tax law remedy the situation described below? Did it make it worse? Probably.
[Source: 30,417,609 Paid $0 Income Taxes, Got $89.6 Billion Back, by Terry Jeffery]
[From the Jeffery article] Of the 150,493,263 filers who submitted individual income tax returns to the Internal Revenue Service for the 2015 tax year, only 99,040,729 paid any income tax at all. Together, those Americans paid a record $1,457,891,441,000 in total income taxes — for an average of $14,720 per taxpayer.
The other 51,452,534 — or about 34.2 percent of all filers — did not pay a penny. Their average income tax payment was $0. This is a fundamental divide in the American tax system. On one side are those who do pay taxes; on the other, those who don’t.
And the divide gets worse. There were 30,417,609 filers who did not pay income taxes and received $89,614,869,000 in cash back from the federal government… (The IRS) calls the $89,614,869,000 in cash that the federal government paid to tax-return filers who paid no taxes the “refundable portion” of “refundable credits.”
“Refundable credits were broken out into three parts: the portion used to offset income tax before credits, the portion used to offset all other taxes, and the refundable portion,” the IRS explained in its comprehensive report on the individual income taxes it collected for 2015 (the latest year for which the data is available).
“The first portion, which was included in total tax credits, offset income tax before credits,” said the IRS report. “The second portion offset all other taxes besides income tax, such as the self-employment tax (payroll taxes for the self-employed – RF). The IRS treated the last portion, the refundable portion, as a refund and paid it directly to taxpayers who had no tax against which to apply the credits, or whose credits exceeded income tax (and other income-related taxes),” the report said. In total, taxpayers claimed $105.3 billion in refundable tax credits,” the IRS said. “Of this, $5.7 billion was applied against income taxes and $10.0 billion against all other taxes. The remaining $89.6 billion in refundable credits was refunded to taxpayers.”
So our current tax system “refunded” $89.6 billion (approximately $3000 per person) that was “never paid” in taxes of any kind. And, by the by, some estimate that the 51.5 million “taxpayers” who pay no taxes under the old “tax” law will increase to 81 million under the new “tax” law. What ever happened to the meaning of words?
Wow! How did we get from there to here?!?! And, did the Democreeps complain that this expenditure over ten years equals $896 billion of the theoretical $1,500 billion (or 60%) of the “blown deficit” about which they ceaselessly have railed? I can’t remember hearing anything ABOUT THAT!