Can my USA šŗšø American friends tell me more about the info depicted in this picture? This doesnāt seem plausible. Something seems bit off. Thoughts ā¦ nostr:note1taqhrls3dvvy86a4hqdajpvkulfq5tt9kmcs5u9gkhjfc8fgp5nqd0rctx
Discussion
There was no income tax before 1913.
Obviously itās needed now tho correct? Is this federal only?
It was never needed unless by āneedā you mean turning citizens into chattel.
Some states in the US have their own income tax on top of federal tax.
Around that year was when it started yes.. when the feds were created
So in the USA each State collects taxes for schools, roads, etc. What does your federal tax pay for?
Also that.. lol the feds give the states grants. So we pay taxes too both each year we file state and federal income tax
This is also correct. Two of the largest federal grants to states are the School Lunch Program (covers students up to age 21 if they are still in high school) and No Child Left Behind (Bush Jrās program).
When thereās big disasterā¦ like rain storm that floods homes & takes out power etc., who pays for that.. does the money come from the States taxes or Federal taxes?
Federal.. they fund a entity called FEMA and that's who steps in to "help"
Thank you. I see. Similar to Canada šØš¦ in that aspect
Also if we don't pay Healthcare we get penalties in some states. Also if I work a job hourly wage and I don't claim anyone on my taxes and I make to much money according to them I owe taxes now I get nothing back but a tax bill because I made to much money.. it fucking sucks lol
Oh wow
I see on the news, or on that political ladies dress she wore few yrs ago to the NYC Met Galaā¦ ātax the richā. Surely the rich are paying tax tho right??? Or whatās that all about?
The rich do not pay taxes because the rich understand how the tax laws work.. the tax law book has 2,652 pages right 2,000 of those pages tell you how to avoid taxes this is why they don't get in trouble.. the ones the really work the system and understand the tax laws
Waitā¦ So couldnāt any regular person do the same thing then? Hire good accountant?
The rich own all the stocks as well right so they take out loans on their 1.7 million stock portfolio and its a loan and the never have to pay taxes on loans
From Intuit:
āThe three biggest categories of expenditures are:
Major health programs, such as Medicare and Medicaid
Social security
Defense and security
Interest on the national debt and various safety net programs such as low-income assistance comprise a sizable chunk of national expenditures, while other categories such as transportation and infrastructure spending round out the government budget.ā
Entitlements (social security and Medicare) make up the largest item, and have been projected to cripple the US economy due to projected eligibility growth.
Is USA social security like āold age pensionā? After say age 65 they get monthly set amount of money, Thatās what we call it here.
Or is social security, aka wellfare money for ppl that canāt or choose not to work?
Old people pension
Yes. The age is now 67.
The payment is a pittance, and almost nobody can live off it.
There have been several attempts by conservatives over the years to privatize social security, because it consistently underperforms private retirement investments.
At this point there is no money kept for social security. The money collected by people working today is directly transferred to retirees.
K, ya, same here too. Govt Pension is very little here, not enough to live comfortably
My grandmother receives about $900 a month. Not even enough to pay household bills once you include utilities. Sheād be homeless.
As another has answered, there was no federal income taxes in the US until 1913. There were other forms of tax, but they were all consumption taxes - taxes on money spent - which incentivized people to save and spend responsibly.
1913 was when we began taxing the mere act of making money.
Here is a link to the constitutional amendment which created the income tax: https://www.archives.gov/milestone-documents/16th-amendment
1913 is the year considered to remodernize income tax. Income tax did exist before 1913 in the USA. Some people think of income tax as the only tax we are paying when there are more forms of taxation.
Interesting. So it existedā¦ jus called something different
Congress imposed the first personal income tax in 1861 to fund the Civil War effort. So it wasnāt really called something different. More like there were multiple income tax schemes that kind of started and stopped before the Pollack ruling really put a stop to it for a bit of time until the 16th amendment was ratified. Basically taxing incomes didnāt happen just in 1913 but was a political fight for 52+ years predating the passage of the 16th Amendment.
Ya, nostr:npub1wtuh24gpuxjyvnmjwlvxzg8k0elhasagfmmgz0x8vp4ltcy8ples54e7js sent me this
nostr:note10rrc8jeehx7vrckkuukhzhatgga6em6a7uzts9f57mzm6duxj3gqujej2t
nostr:npub17x7htjej3hgcqwqj86u9yvpcunhw6nz4zclzph2zfnlwe4v0yp8qrxvgap in here spitting next level knowledge. Thank you for the correction.
Would it be correct to say the previous forms of income tax wouldāve been different from what we would recognize today?
Yes very educated ppl!
Not really. Hereās a good bullet point cheat sheet of US tax history.
You really kno your stuff! Bookmarked to read
To further expand the 16th Amendment passing in 1913 made it possible for the federal government to collect income tax. There had been short lived income taxes previously. Collecting a federal income tax was made impractical by a 1895 Supreme Court ruling Pollack v. Farmersā Loan & Trust Co. until the passing of the 16th Amendment.
Yaaa I just read link from nostr:npub1wtuh24gpuxjyvnmjwlvxzg8k0elhasagfmmgz0x8vp4ltcy8ples54e7js about this. Farmers very active
I will say the way we handle tax in this country has become a convoluted mess. Tax reform should be a serious plank in the parties. I just feel like no one wants to touch it.
Businesses cared