I can't pay income tax if I have no income. But if I buy a product at the grocery store that's subject to a tax I'm technically paying taxes. Anyone who purchases anything in the US is subject to US taxes, just not for income. Most phone companies should also be charging taxes on the services they provide to consumers, same goes for Internet, cable, and satellite providers. Any service that's taxable and paid for is also contributing to taxes.
10 months ago
Last edited at 6:45PM on 2/14/2013
There are some people who don't pay federal income tax. Either high end income earners who take advantage of tax shelters or low income workers who don't make enough to pay federal tax but that does not mean they don't pay taxes. Consider everybody pays a lot of the following... Accounts Receivable Tax Building Permit Tax Capital Gains Tax Cigarette Tax Corporate Income Tax Court Fines (indirect taxes) Dog License Tax Federal Unemployment Tax (FUTA) Fishing License Tax Food License Tax Fuel Permit Tax Gasoline Tax (42 cents per gallon) Hunting License Tax Inheritance Tax Interest Expense (tax on the money) Inventory Tax I RS Interest Charges (tax on top of tax) IRS Penalties (tax on top of tax) Liquor Tax Local Income Tax Luxury Taxes Marriage License Tax Medicare Tax Property Tax Real Estate Tax Recreational Vehicle Tax Road Toll Booth Taxes Road Usage Taxes (truckers) Sales Taxes School Tax Septic Permit Tax Service Charge Taxes Social Security Tax State Income Tax State Unemployment Tax (SUTA) Telephone Federal Excise Tax Telephone Federal, State and Local Surcharge Taxes Telephone Federal Universal Service Fee Tax Telephone Minimum Usage Surcharge Tax Telephone Recurring and Nonrecurring Charges Tax Telephone State and Local Tax Telephone Usage Charge Tax Toll Bridge Taxes Toll Tunnel Taxes Trailer Registration Tax Utility Taxes Vehicle License Registration Tax Well Permit Tax Workers? Compensation Tax
Unfortunately many people live below the income requirements to pay income tax. As mentioned they still pay tax when they spend money. What's also unfortunate is some people are getting back more money then they paid in on income tax. And those spending money received as welfare assistance are paying taxes with tax dollars.
As far as income tax is concerned tax shelters for high income earners don't eliminate the high amount of tax that they pay. Don't let anybody tell you that. Their earned income is taxed up to 39.5% which is much higher percentage than most of us. You may want to trade the % of your income that is taxed with somebody like Berkshire Hathaway's Warren Buffett. Most of his is from investments. Yours COULD be taxed like his if yours is from investments too. But I'm sure you won't want to trade his tax bill for yours.