Some might consider me "political" while others consider me not political enough. But I've been wondering lately about this whole 47% deal. I feel that, since I spent a good deal of time helping members of the 47% file their 2011 tax returns, I have a duty at the very least to offer my two cents.
After each political ad, from both sides, I keep asking "so what exactly is your alternative?" This goes double for Romney's statements concerning income taxes.
Many of those people he was talking about have unearned income. That is, income that they do not receive because of work or investment. Included in this category are Supplemental Security Income (SSI) and Veterans Benefits that are not taxable. If it is not taxable, it is not included in their Adjusted Gross Income (AGI), and, therefore, it does not factor into their calculated income tax.
So what's the alternative? Abolish SSI and these other benefits? Remember, veterans are included in this group. Or perhaps, make these benefits taxable? Just come out and say it.
Then there is the ugly monster called Social Security. Whether for retirement or disability, many people rely on Social Security as their sole income. Like the ones I noted above, Social Security is not taxable in that situation. And when the individual or couple has other income, it becomes a matter of proportions. If their income is above a certain level, a portion of their Social Security Benefits may be taxable.
So, again...withhold these payments? Or tax 100% of them? Just tell us.
Now, regardless of income, there are other elements in place that ease the tax burden. You may claim exemptions for yourself, your spouse, and your dependents. These reduce your AGI, thereby reducing your calculated income tax. There are other adjustments as well, including one for student loan interest paid during the tax year. And, of course, the standard or itemized deductions, plus credits, both refundable and non-refundable, that may reduce the amount of tax you owe.
Read carefully here, kiddies, because this is why the 47% or whatever number you subscribe to is not just a bunch of lazy-ass freeloaders. There are some of us who (gasp) don't make much money. One such as myself might claim a personal exemption, report my loan interest paid, take the standard deduction, and voila! I owe no more tax. Further, the tax that was withheld from my paychecks (yes, multiple checks, multiple jobs...bums work hard, you know), is subject to be refunded. In the end, I have in the minds of conservatives not paid income tax. Nevermind that I did pay into Social Security and Medicare.
Now, Mr. Romney, what is your alternative? Would you like to get rid of exemptions? Deductions? Refundable credits? And will these changes apply to 100%, or 47%? Please, tell me. I am, after all, an independent female voter in a swing state. Impress me.
