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Post by cbk on Dec 10, 2009 8:50:52 GMT -5
This morning President Obama gave a very good speech (with a few exceptions) in accepting his Nobel Peace Prize. And while he was advocating lofty ideals his government was going after one of its less fortunate citizens. While people in the Congress of these United States and the administration of President Obama were openly cheating, and stealing, and NOT paying their own taxes, and ignoring the very Constitution this country is based on, the IRS is going after a hairdresser in Seattle because they say she couldn't possible be supporting herself and her children on $19,000.00 a year. She must be hiding her tips. They fined her 16,000.00 dollars. She had to run up a tab of $10,000.00 in accounting fees to get the fine reduced to 1600.00 dollars. If that isn't HYPOCRISY in capital letters I don't know what is!
BTW, the woman lives with her parents and that is how she is able to support her children. She gets a little help from her parents so let's brand her a criminal.
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Post by jerry on Dec 10, 2009 11:23:23 GMT -5
The IRS makes its living by picking on those least able to fight back. They're scared the rest will wipe out their jobs.
I would love to see the IRS go away in favor of a larger sales tax on everything, with no loopholes and no exceptions whatsoever, even though it would actually cost me more because I no longer pay income tax. That whole dang structure is rotten to the core.
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Post by scoutmom on Dec 10, 2009 12:51:27 GMT -5
Stories like that just make me sick to my stomach.
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Post by crystal on Dec 10, 2009 13:37:45 GMT -5
Well not holding anything against the hairdresser...but they do make good tips. I mean I know hairdressers that make $500-1000 a week in just tips. I know my hair dresser got a $5 tip from me the other day. My haircut was $15. That's a 30% tip. She very well could have not included her tips in her taxes.
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Post by jerry on Dec 10, 2009 13:56:58 GMT -5
I see no reason for anyone to report tips. As far as I'm concerned, tips are gifts.
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Post by crystal on Dec 10, 2009 16:03:03 GMT -5
But that's a part of your income. A waitress makes like $4/hr and relies on tips to compensate.
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Post by jerry on Dec 10, 2009 16:55:04 GMT -5
But that's a part of your income. A waitress makes like $4/hr and relies on tips to compensate. The key word here is "gratuity", from the Latin gratis, which means free. I have no problem with reporting a base salary of $4 per hour, but if I donate something to someone because I appreciate them, that's none of the government's ----ing business. |
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Post by Tommy Thompson on Dec 10, 2009 18:21:12 GMT -5
I agree with Chrystal that tips are considered part of the pay in certain jobs, like the waitresses at Sammie's but then again I agree with Jerry that "Tips" are gratuity and not any different really than a gift. Next thing you know they'll be taxing your kids for their Christmas gifts.
In this particular case, how can they get away with charging this lady for something they can only "assume". Tommy
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Post by cbk on Dec 10, 2009 18:24:44 GMT -5
Unless the IRS rule has been changed,( and it might very well have been since it's been quite awhile since I was up on those rules) those people in service jobs who regularly make low wages and get tips have to report their tips because there is a formula whereby some % of your reported wage is added to that wage because that is the minimum the IRS figures you get in tips. And you are then taxed on your reported wage + that figure. So how could she cheat? And how could the IRS prove it? And I'm with Jerry on this one. A tip isn't any business of our government because it is a GIFT. I believe that parents are able to give a monetary gift of something like $10,000.00 per year to each child without tax. So couldn't she receive $10,000.00 in tips (gifts) without having to report it? That would still only bring her up to $29,000.00 per year in income. Hardly big money when one has 3 children. BTW folks if you're going to die soon try to hold on until Jan. 1st at least. Because in 2010 there will be NO inheritance tax. But don't hold on too long because in 2011 that tax goes to 50% of the estate. Do you feel all warm and fuzzy now?  |
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Post by jerry on Dec 10, 2009 18:35:35 GMT -5
BTW folks if you're going to die soon try to hold on until Jan. 1st at least. Because in 2010 there will be NO inheritance tax. But don't hold on too long because in 2011 that tax goes to 50% of the estate. Say what?? Is this confirmed and/or enacted, or just proposed? |
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Post by crystal on Dec 10, 2009 20:07:01 GMT -5
I know in college...I worked with my mom on Saturdays as a "Demo-Lady". (Yeah I was the kid handing out samples on Saturdays at Wally World in Leeds.) When I went to file my taxes...I didn't have to claim it because it wasn't more than $500 in a year. My parents paid for my gas to and from school. My lunch was free at school. Ahhhh....those were the days.
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Post by cbk on Dec 11, 2009 14:52:40 GMT -5
Jerry, I remember this from long ago when my Dad did taxes for people. As I said, it could have been changed during the years. But it was the way the IRS made a person report at least some of the tips he/she got.
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annon
New Member
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Post by annon on Dec 11, 2009 15:52:15 GMT -5
BTW folks if you're going to die soon try to hold on until Jan. 1st at least. Because in 2010 there will be NO inheritance tax. But don't hold on too long because in 2011 that tax goes to 50% of the estate. Say what?? Is this confirmed and/or enacted, or just proposed? Jerry, here is a link that goes over the details of the inheritance tax (or estate tax). en.wikipedia.org/wiki/Estate_tax_in_the_United_StatesIt looks like it is repealed for 2010, but goes back up in 2011 unless congress changes it. |
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Post by Tommy Thompson on Dec 11, 2009 16:01:44 GMT -5
BTW folks if you're going to die soon try to hold on until Jan. 1st at least. Because in 2010 there will be NO inheritance tax. But don't hold on too long because in 2011 that tax goes to 50% of the estate. Say what?? Is this confirmed and/or enacted, or just proposed? Jerry, If I'm not mistaken this is part of the tax cuts that were introduced by Bush some time ago but are to expire in 2010. The Dems don't want to renew the tax cut but they are considering a moratorium on it for 2010. Tommy |
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annon
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Post by annon on Dec 11, 2009 16:48:59 GMT -5
Yep. These are indeed part of the "Bush Tax Cuts". There were several things rolled into one bill, signed into law in 2001.
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