Wednesday, March 12, 2008

More Tax filing information

I've enjoyed several more hours of math and research on the federal income tax.

1. I am not, "one of those people."
I'm not too sure what the ranter meant by "one of those people." It is skin color? Genetic defects like being Jewish? And, do I care about the ranting remarks of anyone that uses a smear like, "one of those people."

2. All IRS data is present in raw form for free public downloads.
There's no reason, unless you have no reason, to not look at the raw data AND the IRS studies. Proper disrespect to the Lax Foundation, aka the Tax Foundation.

3. The Brookings Institute (BI) is a very interesting collection of well rounded individuals who seldom agree with each other.
I've fact checked a few publications from the BI. The BI always seems to have a command of the better sources and I've never caught them using a secondary source when the primary source was available.
Every BI publication or article always contains proper 'footnotes' for other researchers to follow, if a researcher wishes to double check data.
For the uncouth, that means the BI does not ever say, "We got our information from the IRS." Such a statement would be too vague and taint any conclusions presented by such a lame author. The BI would give a direct link to the online data, the proper name of the source, and the date of the sourced information.

4. For the purposes of making public reports and bulletins, the IRS always uses Adjusted Gross Income.
That in its self skews results. For example, the IRS gives Adjusted Gross Income (AGI) for 2005 as being $7.422 trillion dollars. However, Taxable Income drops to $5.023 trillion dollars. Non-taxable interest for 2005 was well over $57 billion. Most of which was in the upper income brackets and it not included in the $7 trillon or the $5 trillion or whatever AGI figure one chooses to use.
There are over 150 categories for exemptions. But, roughly $2.4 trillion in untaxed income after 'statuary adjustments' is a lot of folding cash.

5. There is at least one type of an income tax not included in IRS figures. The Alternative Minimum Tax (AMT).
That kicks in for some people with income of over $33,125 if married filing separately. That's after an exemption. It would seem this AMT hits the middle class, not just the elites.
All AMT collected is excluded from data on 'income tax collected.' That raw data has to be collected by the diligent researcher who wants the best answer on who pays income tax.

I have no interest in professional apologists for the Lax Foundation or "those kind of people" who call other people, "Those kind of people."

Some people can't process large amounts of information and must use snippets and sound bytes.

Who would want to know such a person? Not me.

If I want to hear sound bytes, news snippets, and mental midgets, I can turn on Fox News.

Now 'those people' are highly paid professionals who can read the news script exactly the way it was written.

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