Bush Tax cuts are a farce, farce, farce

anger management · 12-12-2003, 05:32 PM

I got a christmas bonus this week of 300.00 and guess what the federals took out 67.00 dollars for taxes. And I make under 20,000 a year I thought there was tax cuts for people like me guess not. Our government is really screwed up when they make a person that is barely making it by and increasing taxes on them.

[ 12-12-2003, 08:12 PM: Message edited by: anger management ]

2LEYS · 12-12-2003, 06:04 PM

Relax, you will get it back. I will get about a $1,500 bonus but will only see $800.

The tax cuts weren't meant to help the people who pay little or no taxes. It was meant for the people who pay 50% or more in taxes.

anger management · 12-12-2003, 06:10 PM

2leys I pay the feds out of my regular paycheck 37.00 a week. So I would say this isnt little in my opinion. At the end of the year I will have payed a total of 3,000 in federal taxes and I only get about 500 of that back when I file. And also with state and social security and federal together it will all toatal 5,000 at the end of the year. And this sucks when you only make under 20,000 a year.

[ 12-12-2003, 07:13 PM: Message edited by: anger management ]

anger management · 12-12-2003, 06:15 PM

The tax cuts favor the rich not the poor.

Chromaflage · 12-12-2003, 06:21 PM

Quote:

Originally posted by anger management:
The tax cuts favor the rich not the poor.

<font size="2" face="verdana,arial,helvetica">Hmmmm......I'm far from rich, but made more money in 2003 than in 2002 and, by my preliminary calculcations, I will be paying less taxes for 2003. I consider that favorable.

Bonuses? I get quarterly bonuses and had to convince my employer to cut a separate check - he was including it with my normal salary. The withholding schedule is based on the false assumption that I got paid the combined salary and bonus on a regular basis. Therefore, the withholdings increased substantially. However, when put in a separate check, the total hit is a lot less. And, yes, you do get most of it back.

My $0.02 plus tax

ORS

[ 12-12-2003, 07:22 PM: Message edited by: OregonRedside ]

Water Ready · 12-12-2003, 06:23 PM

Hey, Just a new guys views, & a question. How much was the Oregon Taxes Vs. Fed. I am sure that most of what was taken from the Feds will get back next year, but the state will most likely keep. Only weighing in, for sake of small debate. Chin-up Good "Happens"!

anger management · 12-12-2003, 06:24 PM

Well I disagree with the term you will get most of it back. Out of 5,000 taken out of my check for taxes I only get 650.00 back. That really hurts when you have rent, food, utilities, car expenses by the end of the year 16,000 after taxes their isnt much left to do squat

[ 12-12-2003, 07:28 PM: Message edited by: anger management ]

Thumper · 12-12-2003, 06:30 PM

Quote:

Originally posted by anger management:
The tax cuts favor the rich not the poor.

<font size="2" face="verdana,arial,helvetica">Tax cuts favor those who pay taxes. Your effective federal rate would seem to be about 15%. Is that too high?

anger management · 12-12-2003, 06:34 PM

Thumper I do pay my fair share of taxes but the feds took out more money this year than last year

Albacore Tuna Captain · 12-12-2003, 08:35 PM

AM, now how does that compute? :whazzup: If the tax rate has been lowered, why are you paying more?

anger management · 12-12-2003, 08:42 PM

I dont have any idea ethier. I was told it was because I am single. A married person that earns what I make pays less.

Chromaflage · 12-12-2003, 08:42 PM

I'd be all over that payroll dept. My witholdings actually decreased this year over last year.

ORS

Reelentless · 12-12-2003, 08:44 PM

Did you fill out your tax return already? If not, how do you know what your taxes are going to be?

Uglygreen · 12-13-2003, 12:04 PM

Bonus taxes? Never heard of them. Whats a bonus tax?

UG

2LEYS · 12-13-2003, 12:10 PM

It is the capital gains tax that gets taxed at the highest rate. Bonuses get taxed at the highest rate.

Thumper · 12-13-2003, 01:35 PM

Aren't "bonuses" treated as simple income?

Silver Hilton · 12-13-2003, 02:27 PM

Bonuses are income, not capital gains. So you'd get banged for FICA, state income tax, and fed income tax. Unless you make more than the current FICA lid, (which was about 87k when I last knew), in which case you would just pay state and federal income tax.

Unless you were the owner of the company, in which case you can pay yourself a dividend which is taxed now at a lower rate than ordinary income, I believe.

blacktail · 12-13-2003, 05:44 PM

I have an even better question....what's a bonus?

Haven't seen one of those things for over 10 years.

Wish I had one so I could complain about the taxes.

Mike

1pump · 12-13-2003, 11:40 PM

The bonus taxes are particularly harsh.
In '97 I had a good year and received an annual bonus of slightly less than $11,000. After taxes I netted about $5200. And I didn't get any of it back at the end of the year.

monoman · 12-14-2003, 01:45 PM

AM

Do you think those that make more because of hard work should pay a higher rate than you?

And how much is "Rich"?

Hare's Ear · 12-14-2003, 10:17 PM

The statutory Federal withholding rate from bonuses is 27%. Doesn't matter what tax bracket you are in. Obviously, if you are in a lower tax bracket 27% is too high. It looks like your withholding was around 22%. Did you have some withholding for 401(k) or a Cafeteria Plan? Your employer doesn't have much say in the matter. Hopefully you will get a refund come 4/15. Try not to think of it as an interest free loan to the Federal government. Try to think of it as, well, this sucks!

As a CPA I see a lot of this each December. If you think you are going to have a refund when you file your return consider filling out a new W-4 in November or December with an additional exemption or two. This will put more of your paycheck in your hands for Christmas. Don't get greedy or you will be writing a check to accompany your tax return vs. asking for a refund.

Hoosier Daddy · 12-15-2003, 07:28 AM

at least you got a bonus.....