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Reply to "We're doing a mortgage refi at 3.75% -- someone tell me why that interest should be deductible?"
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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Yes, can we PLEASE not hear that ridiculous "40% of Americans pay nothing in taxes" line ever again? This is one of the most educated regions in the country, people. THINK.[/quote] In 2011, 46% of households paid nothing in federal income taxes. Why is it wrong to say so? Those people still pay sales tax, and in some, but not most cases, state taxes. So they have some taxes, but not federal income taxes. [/quote]And in Virginia they pay sales tax on food they buy at a supermarket. That just doesn't seem right. [/quote] I didn't realize how high the sales tax rate is in most states. For example, if you live in Texas, you are paying a little over 8%. If you are poor, you are paying that on all of your disposable income because you aren't in a position to save. [img]http://taxfoundation.org/sites/taxfoundation.org/files/docs/sales_tax_2012.png[/img][/quote] I believe Texas has no state income tax. In terms of income vs. payroll taxes: the distinction is pretty important, because those streams of funding are devoted to very different ends. P[b]ayroll taxes are not used to build shared capital and infrastructure[/b], so as a matter of policy it is quite questionable to have a growing portion of citizens not contributing to a common future. [/quote] Except, in a very real way, they are. Yeah, I know, there are IOUs in there. But government wouldn't operate without payroll tax revenue.[/quote]
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