Are you and yours expecting a tax refund this April?

Avatar for xxxs
Community Leader
Registered: 01-25-2010
Are you and yours expecting a tax refund this April?
3
Mon, 12-17-2012 - 7:19pm

  If like most American you have paid payroll tax all year.  Now tax season will be upon us.  Are you expecting a refund or will you have to pay in?  What are you feelings emotionally and about your personal budgets?  If you obtain a refund or do not owe taxes then that puts you in the 47% none tax payer category.

     Is that a fair assessment?  After all the treasury invested all those payroll taxes into interest bearing accounts. Did not the treasury gain an advantage?  And do you not deserve a refund for the overpayment? 

    What are your thoughts and feelings?   Are those that plan to obtain a legal refund to be pejoratively categorized?  As part of the 47% who either owe nothing or receive refunds? 

dragowoman

iVillage Member
Registered: 10-17-2012
Wed, 12-19-2012 - 11:36pm

First, the "47%" refers to the percentage of Americans who don't pay income taxes, and doesn't include those who pay the proper amount of taxes and don't get a refund, or those who overpay their taxes and do get a refund.  If you pay income tax, you're part of the 53%.

As far as payroll taxes are concerned, generally speaking, there is no "overpayment." You are assessed a certain amount based on your income...and most Americans tend to use more via social security, medicare and/or unemployment insurance, than they pay.

the real problem is if you're expecting a refund next year and the fiscal problems of both the state and Federal governments prevent them from paying you.

Avatar for xxxs
Community Leader
Registered: 01-25-2010
Fri, 12-28-2012 - 1:02am

  Sorry that is a misunderstanding of what the 47% represents. " doesn't include those who pay the proper amount of taxes and don't get a refund, or those who overpay their taxes and do get a refund."   Because the way the question was worded it became easy not to ask the questions.  To me it was as you point out a person who owes no taxes nor obtains a refund is lumped with those who overpaid.  That lead to even more misunderstanding. 

I talked about this with a IRS person 4years ago when it was 45%  Once the analysis had been done it was apparent that it could be misunderstood.

The facts according to these sources:

http://www.taxpolicycenter.org/publications/url.cfm?ID=901527

http://www.forbes.com/sites/rickungar/2012/09/19/the-real-truth-behind-the-47-percent-why-arent-these-people-paying-federal-income-taxes/2/

http://www.tnr.com/blog/plank/108817/anatomy-the-47-percent#

dragowoman

iVillage Member
Registered: 10-17-2012

The first lines of your cite explain that the 47% are those who do not pay income taxes and then goes on to explain the vaguries of the tax system.  This supports what I've said.