HEAFFA2DA's Blog

What happens when someone who knows nothing about a particular subject tries to write a blog about that particular subject? You get an hilariously funny blog filled with incorrect claims.

Booggymann certainly showed his lack of knowledge concerning income taxes. He listed a link: www.taxfoundation.org/publications/show/151.html knowing that some will blindly believe that his following calculations are shown on that web site. What the link actually brings you to is a report titled “Federal Individual Income Tax Rates History“ from 1913-2008. It shows all the tax brackets for each year, but it does not, for example, say how much tax a single taxpayer making 30K actually paid any year. Thank goodness for that, otherwise Booggymann might have been able to even fool some who have any knowledge at all of income taxes. Thank goodness also, because here is where the laughs really take off.

Here is Booggymann’s claims:

Taxes under Clinton 1999   Taxes under Bush 2008

Single making 30K - tax $8,400 Single making 30K - tax $4,500
Single making 50K - tax $14,000 Single making 50K - tax $12,500
Single making 75K - tax $23,250 Single making 75K - tax $18,750
Married making 60K - tax $16,800 Married making 60K- tax $9,000
Married making 75K - tax $21,000 Married making 75K - tax $18,750
Married making 125K - tax $38,750 Married making 125K - tax $31,250

ALL OF THESE AMOUNTS ARE INCORRECT!

Let’s examine one of Booggymann’s claims - that in 1999, a single taxpayer making 30K paid income taxes of $8,400. Booggymann looked at the 1999 tax brackets showing that 30K for a single taxpayer was in the 28% bracket. So he multiplied $30,000 times 28%, and claimed $8,400 of taxes was paid. FUNNY, FUNNY STUFF!

First, Booggymann doesn’t even know that tax brackets are based on taxable income, not what someone makes. In 1999, the single standard deduction was $4,300 & 1 personal exemption was $2,750. So this single taxpayer making 30K had taxable income of $22,950.

So this single taxpayer who made 30K in 1999 was actually taxed on $22,950 (or less if he itemized deductions) which was taxed @ 15%.

Therefore his tax was $3,446, not $8,400 as Booggymann claimed.

Secondly, Booggymann thinks that if your total income figure is within a higher tax bracket, then all your income is taxed at that rate. MORE FUNNY, FUNNY STUFF!

The reality though is that even if you make a $million, your taxable income is taxed progressively up the brackets.

Take Booggymann’s claim that a single taxpayer making 50K paid $14,000 in taxes in 1999. Booggymann took this whole $50,000 & multiplied it times 28%

This taxpayer actually had taxable income of $42,950 (even less if he itemized). Even though this $42,950 falls in the 28% bracket, the first $25,750 was taxed at 15%. His income tax was $8,686, not $14,000 as Booggymann claimed.

ALL of his numbers in his blog are not even close to reality. Booggymann claims the single taxpayer making 30K is paying $3,900 per year less than in 1999 ($4,500 in 2008 compared to $8,400 in 1999), as I said - NOT EVEN CLOSE.

Are the numbers for the same income less in 2008, than in 1999? YES. For example, the single taxpayer making $30,000 paid $690 less in 2008 than in 1999. If you think this taxpayer isn’t paying it back in increased local or state taxes, then you likely agree with Booggymann’s numbers too. For example, when U.S. Treasury revenue declined due to the tax cuts, less federal money was sent to the states. One of Jeb Bush’s solutions was to reduce the percentage of local school taxes that the state paid. You now make that up by paying a greater percentage of local school taxes. In other words your property taxes increased to help offset your income tax cut. The politicians want you to disregard everything else, & just see what happened on your 1040. Sadly, some are fooled this way.

Booggymann then goes on:

“If Obama or Hillary are elected, they both say they will repeal the Bush tax cuts and a good portion of the people that fall into the categories above can't wait for it to happen.”

Now either Booggymann just blindly believes any propaganda that sounds good to him, or he is simply mistaken, or he’s an outright liar. Neither of the Democratic candidates are saying they will repeal the tax cuts “of the people that fall into the categories above” (Booggymann specifically stated income of $125,000 or less).

Clinton’s plan for income taxes is to “Increase on income over $250,000. Make the current (Bush tax cut) rates for "middle class" families permanent.” Also “Would create a matching refundable tax credit for contributions made to 401(k)s.”

Obama’s plan is “"Repeal Bush's tax cuts for top 1%. Eliminate income taxes on seniors earning $50,000 per year or less.”

So the reality is “the people that fall into the categories above” would do better under Clinton’s or Obama’s plans, not worse as the scare tactic propaganda claims.

BTW - Clinton’s & Obama’s plans are also on the Tax Foundation’s web site @ http://www.taxfoundation.org/candidates08/comp
are/ Guess Booggymann just happened to miss that page.