Michael1942's Blog

Taxes looking at this phenomenon(?) Taxes have been an issue from the onset of colonization of the then “new World” by the English. It still raises the hackles of many of us yet without those funds the country would cease to function. While there are penalties for not paying or under paying taxes, most of us do what required to keep us functioning. There has been much controversy about who should pay and how much but the reality is we as Americans have a system however flawed that works reasonably well. There are many who do not like the system and even some who refuse to pay taxes but the fact remains that taxes fund the  government. We can protest, disagree and rage at how those funds are spent but it is ludicrous to rail against the tax system and refuse to pay. The chance of your winning against the IRS are slim to none if you have not paid taxes but if you are audited your chances are as good as any. The fear of audit is only as bad as your mistakes and the luck of the draw (audits are random unless something sticks out). This election run has been about  what the current office sitter has done and is doing while the issue of what each aspirant pays what in taxes plays out in the background.The 2 most prominent candidates are millionaires and each pays from 15% to 30% in taxes on their earnings. To be clear, the tax rate on earnings from investments is lower than the same amount of earnings from salary or direct payments of money. So if you have a job or own a business  that pays you a salary any money you earn is taxed at a higher rate than income from invested monies. The controversy about who pays more or should pay more is mired more in the numbers than in the facts behind those numbers. I am thinking if these runners can skew the facts now, what will they do when in office?