For many, understanding what the social security tax is exactly can be a little confusing. Here we breakdown the different components that make up the social security tax and go behind the scenes of who pays it and the long history behind it.
In 1969 when the Alternative Minimum Tax was first implemented, it guaranteed that millionaires and high-income individuals who paid little to no income tax would have to pay a minimum amount of taxes. Over the years the number of individuals who fell into this category has grown, along with the total revenue. Different measures have been taken through the years, such as The Tax Reform Act of 1986 which eliminated the partial exclusion of capital gains, reducing overall revenue at the time, but helping individual taxpayers. With 2011 on the horizon, the potential number of additional AMT taxpayers will increase to 25 million, if the current legislation is not extended. The question is, should you fear the AMT?
The top 1% of tax payers in the U.S. may be an exclusive bunch, but their income tax contributions alone represent 40% of the federal total. What follows is a breakdown of where their tax dollars are going, as well as some related items their money could be used to purchase.
The U.S. spends about $12 billion dollars per year prosecuting marijuana offenders, which are 47% of all of all drug arrests, with roughly one-third of all crimes being non-violent and drug related. How much could the government make by regulating pot?
In the second installment in our series on “Sin Taxes,” we present a graphic which illustrates how much money individuals are being taxed to consume alcohol, and subsequently how much the Federal and State governments are generating in tax revenue.
It’s no secret that the government taxes our spending– in fact, sales tax is one of the main ways that the government brings in money. But there are a number of other items that have their own additional taxes imposed, whether at the state or federal level. And, when it comes to cigarettes, the consumer pays both. Would it be right to call this a tax on one’s vice, or sin? While we don’t claim to be any moral authority, the figures and statistics are quite interesting.
Have you ever wondered where the government collected taxes, and where all of the refunds go? Perhaps not surprisingly, the rates of taxes and the amounts derived from various sources have changed over the years.