Why are unemployment benefits taxed and corporations and b/millionaires given loopholes

[Skidmore]

that you can drive jumbo jets through? Why is SS income taxed? What is the rationale for taxing people who don't have jobs or may be largely underemployed?

Edited to add: It makes no sense as to use taxation as a disincentive to be in those categories when all policy is to force people out of the labor market.

[liberal N proud]

1. Because the unemployed don't lobby congress like the corps.

Even if they did, they could not parlay the money to throw the parties the rich and corporations can.

It is that stupid and that simple.

[Hannah Bell]

2. you have to ask?

[Skidmore]

3. Just pointing it out,

oh wise one.

[hobbit709]

4. Because money talks

And big money talks so loudly nothing else can be heard.

[Scuba]

5. I know, I know, I know.....

The system is rigged to benefit the wealthy.


Next question please.

[MacNfries]

6. WHY?

Surely your question is meant as humorous, right? Just follow the money trail ... that's why I am so concerned about TP and Republicans. They get their incentives from corporations & special interests who provide them plenty of money to make biased decisions. Why does it make sense to cut taxes for the wealthy, lower the corporate tax rate from 35 to 25%, and then cut entitlements that poor and middle class depend on? We have no voice of unison in Washington DC.

Wait until Pres Obama announces tax increses on the rich this week. Within 2-3 months the Republicans will come up with a tax exemption to get the rich around it. Why do you think the Tax Code is so THICK?

[Skidmore]

7. Just pointing it out.

[safeinOhio]

8. "We don't pay taxes. Only the little people pay taxes...",

Leona Helmsley....The Queen of Mean.

[alc]

9. you won't like the answers

My opinion is that the only loophole should be "number of good US jobs created". If your investments create enough jobs you can have a 0% tax rate.

The reason for the loopholes that do exist is that in theory the rich are creating jobs. We want the rich to invest and earn in the US vs overseas and tax breaks could be used to encourage that. But lobbying (as others have said) results in loopholes that encourage moving jobs overseas and still getting the breaks here.

Unemployment benefits are income and income is taxed. It would be good to talk about what income level taxes should start (both fica and income) but all income should be included. It is possible to collect benefits part of the year but have a pretty significant gross income by the end of the year.

[WhiteTara]

10. thank Ronnie Raygun

he did that.

[hfojvt]

11. why shouldn't both of those be taxed?

You think only wages should be taxed?

Social security is already given several tax advantages that wages don't get.

Sure tax corporations and millionaires (and it's not the loopholes any more, it is the rates themselves that are the problem, calling it loopholes just makes it sound more complicated than a) tax dividends and capital gains like ordinary income and b) raise the top frigging rates).

But then when you have done that, why not cut taxes on wages before you cut taxes on money that people are not working for?

[madfloridian]

12. Social Security has already been taxed once.

Why double tax it?

[hfojvt]

14. first, because it has not been taxed once

second, because that is backwards. The tax break should be when you pay the tax, not when you get the check. How much money does McCain get from social security? You want that to be tax free, while all the low-wage workers are paying taxes on their wages? Twice?

And back to the first point, a social security check is made up of at least four parts. Worker contributions, employers contributions, fund earnings, and contributions from those currently working. Only one of those four has been taxed.

[msongs]

13. SS IS a tax which is refunded with add ons + the government steals half of it already anyway nt