Hastert: if you earn $40K a year, married +2 kids, you don't pay any taxes

This is why I despise the modern GOP. Can't ever tell the truth. Conveniently letting of the "federal income" modifier in front of taxes.

http://www.dems.gov/index.asp?Type=B_PR&SEC={449BBE79-704A-423C-AF88-6D9DF9D989D8}&DE={7BDEAFD5-8743-421B-8F2F-656D7E768CE1}

According to Speaker Hastert, You Don’t Pay Taxes

WASHINGTON, DC—James E. Clyburn, Chairman of the Democratic Caucus today responded to stunning remarks delivered by Speaker of the House, Dennis Hastert. Summing up Republican budget and tax priorities around midnight on May 18, 2006, Hastert made clear just how out of touch he is with working Americans by stating that people who earn $40,000 a year don’t pay taxes. His statement, "Well, folks, if you earn $40,000 a year and have a family of two, you don't pay any taxes. So you probably, if you don't pay any taxes, you are not going to get a big tax cut." Following is Clyburn’s statement:

"To this point, I have been baffled by Republican budget and tax priorities that value millionaires and billionaires above working families, and sink this nation’s budget deeper in debt every year. But Speaker Hastert crystallized GOP budget philosophy—working families don’t pay taxes and don’t deserve a tax cut.

"No statement has been more telling, arrogant and out of touch. Today’s narrow passage signals the need for change, because the Republican majority will stop at nothing to advance a fiscally reckless and immoral budget. Democrats offer an alternative that values working families, by balancing the budget by 2012; increases funding for homeland security and enacts all the 9/11 Commission's recommendations; values our first responders and invests in port and mass transit security; and fully supports veterans' health care and honors those who have bravely and selflessly served our nation."

Is that NOT paying taxes?

Maybe an accountant can verify this:

2006 Married +40K + 2 Dependents (under 17)

$10,300 in deductions
$13,200 in exemptions.
Taxable Income: $16500.00
I see this family as owning $1720 in Federal Income tax

But when you crank in the Eligible children for child tax credit: $2000 - it zero out the Federal Income tax.

You can calc it yourself if you want:
http://www.irs.gov/individuals/page/0,,id=14806,00.html

Using the same Tax software IRS uses, (though its simple enough to figure on paper), 2 kids (assuming kids are under 17, and otherwise qualify) for tax yr 2005:

agi: 40,000
standard deduction(mfj):10,000
4 exemptions(3200 each):12800
taxable income:17200
tax:1854
child tax credit:1854 (which eliminates the 1854 in taxes)
additional child tax credit:146
no taxes withheld on w2
refund= $146
this is assuming no other deductions or taxes (such as self employment tax)and just straight w2 income

if you claim exempt on your w4 then no federal taxes will be withheld

correct me if I am wrong but I believe federal income tax is what he was referring to. Yes, this person may pay other taxes, property, state, etc. but will actually be due a federal refund.

My main point is the insipid use of the word "Taxes" when they really mean Federal Income Taxes - it is one of the most disingenuous usages of the English language - and the GOP partisans are expert in it.

Since the FICA surplus is being robbed to pay for general fund shortfalls, it is nothing but another federal income tax.

:P

Two Words come to mind... probably more! How totally ridiculous, what a nincompoop JERK

These scumfucks need to pull their heads out of their asses. Millionaires are not the ones who should be getting tax breaks.

those are taxes and are paid in a proportionately higher amount by the middle class than by the wealthy.

Shit, it's hard for ONE PERSON to live on $40K in New Jersey. I'd know, I make considerably less. :P

And property taxes! Ouch.

In Northwest Arkansas, they're up to 9 freakin' percent-- and that hits the John and Jane Does a lot harder than it hits the Sam Walton heirs

All you folks out there making $40K and have 2 kids could have just filed for a total refund of all your fed taxes...per Mr. Hastert!!!!

Perhaps all those making $40K with two kids should contact the IRS and inquire
as to when they can expect their money back.

Better yet...let's just call, write, and fax Hastert's office and ask him.

Do these guys ever check facts before opening their mouths & spewing their shit?


:grr:

YOU'RE A HOOT CRISPYQGIRL! :D

tough time paying your bills and putting food on the table

on your family (one of my favorite bushisms).

In Salem MA for instance a STUDIO apartment runs about $800/month. A two bedroom apartment rents for about $1200/month. That's $14400/year just in rent.

$40,000/year does still pay for payroll taxes, knock that down to $35000 earned per year in state/FICA/insurance (if you are lucky enough to get it. Assume they do). Subtract rent down to $20,600, now food for four at least $200/week for a lousy diet for your kids and you are down to $10,200. Now $80/month for electricity and an additional $150/month for heat. Now we're at $7440. We'll assume they buy their clothing at good will and that they do not have a cell phone or cable TV or internet access. $50/month for clothing each (keep in mind that 6 pairs of socks at target costs about $8 and a pair of dockers costs about $30 so we're being VERY cheap here). That puts us at $5040 of total discretionary spending for a family of 4 for the year. This is $420/month. Now, if the family has a car they are financing that literally eats up the rest of that $420/month between payment, gas and insurance. If they don't own a car and instead commute via bus (let's assume only 1 family member works here so they aren't paying transportation for two or day care) then we're at about $50/month for a bus pass. Discretionary spending is now at $370/month total for birthdays, holidays, entertainment. Not on the streets but not exactly living the American dream. At least they have a roof over their heads and health insurance though! So thank you to the Republicans for living in 1982 and not realizing that $40,000/year doesn't cover anything more than the absolute basics anymore. (Note that this family is screwed if they need to buy any new furniture or household items). And people wonder why the credit card companies pushed so hard for bankruptcy law change? it's because a family of 4 with a $40,000/year income would be living under a massive, insurmountable debt after a 10 year period in these conditions. And this is at $20/hour income. How does someone working for minimum wage survive?

I happen to track my finances to the penny - I've been doing that for years. You spend $200 per week for food (and for a lousy diet)? I'm not even close. Over the past 12 months we averaged $84.69 per week for a family of four - and we eat very, very well. We could easily get that down to $70.

Housing is cheaper here. We own a three bedroom, one bathroom, house with a big yard and mature trees, in a quiet neighborhood, on a dead-end street. It would probably sell for roughly $85,000.

My property taxes last year were $958 for the entire year.

Where one lives makes a huge difference. But you're right... republicans are destroying our way of life and their representatives have no clue how real people live.

C'mon DUers! Move to Iowa! We'd love to have more of you here.

Will anyone hear?

Would anyone care?

If only it were true.

His statement is false for the majority in that situation, btw. I saw a repuke yesterday saying that if we got rid of the tax cuts, then we would lose the 10% tax bracket and "our lowest wage earners would see their taxes go up by 50%." COMPLETELY UNTRUE. Yes, the lowest bracket would now be 15%, but if you are completely in the 10% tax bracket now, you are making less than 8K and you're not paying income taxes at all. It's time to challenge their tax non-sense. I'm a tax professional and I know most of what they say is a horrible distortion of the truth or just completely made up and false.

We've GOT to get the House back if only to wrest the gavel from his dirty, pudgy fingers.

Haster obviously does not file his own tax return.

your taxable income was $40K, as a married couple, you would pay $5274. Now let's reduce that by $14k in exemptions, you still owe $3174 in federal income tax.

taxes - and 'virtually' is a nuance word, thus banned in repub circles, so the have to translate that at simply 'no taxes'.

It's all so simple if you know how to talk republican.

those paid by, let's see, how about Dick Cheney?

Day care credit is barely worth mentioning if they have it and no EIC for that income level. Your exemptions are also a bit low. 10k for married and 3200 exemption times 4 people. You're not paying much income taxes given all of that, but some. Then add on FICA and all that good stuff. Sorry to nitpick, just want democrats to have their facts straight.

Isn't a "family of two" a married couple with no children? Was he trying to imply that there are children in his hypothetical tax scenario? Without any sort of EIC, these folks'll be paying big bucks on taxes... course then they won't have to pay for daycare. My wife and i spend more on daycare than on her graduate school... it's just insane.

If there are no kids, this family is paying 3k or more just in income taxes. Myself, I made just over 20,000 and I paid well over $1000 in income taxes. As a single guy without anything extraordinary going on, there's just not much I can do to reduce my tax.

If you want to get people out buying again, it would do far more good to give 1000 people making 40k a thousand dollars than to give a million dollars to a millionaire or billionaire.

according to the IRS, and everyone else i know... a family of two means, single parent + child, or married couple. A married couple with 2 children would definately be a family of four. I think the man meant to say family of four. 40 thousand is not enough to "support" 2 children and 2 adults. Sure you can feed yourselves and find a cheap apartment, but will you ever be able to buy a house or have medical care? Big fat NO. The system is shot...

time for a revolution if you ask me.

More or less, yeah? I mean- if he honestly thinks the average person isn't paying taxes, it's not surprising that he can completely disregard them.

:grr: :grr: :grr:

to move in with a family making $40,000 or less per year for one month each and every year. They need to see how real people have to live from day to day.

and I'll take that a step further and say that every person elected as a congressman/senator should be required to live the "common mans'" life for a period of six months prior to holding office. They should be required to work a job that pays minimum wage and live accordingly. They will be responsible for all bills (rent, utilities, car payments, food, clothing, and insurances)and any unforseens. It should be required that a few obstacles be thrown in along the way such as a hospital stay or car repair. How can these jerks be entrusted with the common mans essential issues when they are so far removed from them? As for that asshole Hastert, doesn't he have the common sense to realize that when you have so little any little bit hurts.

and let them pay into a health savings account to take care of their own medical needs. They're not paying any taxes, so they should have plenty of money to pay for all of their own health care.

Hastert and the rest of the politicians in Washington receive the best health care money can buy (except it's not paid for by them, it's paid for by us, the taxpayers). No wonder health care reform is low on the agenda. Top-notch, publicly funded health care insurance for them, "ownership" of our own health care for the rest of us, through health savings accounts.

check.

my husband is out of work, we have no kids-and yet we paid taxes last year. In fact, up until he stopped working, we never got a tax refund.

And if it weren't for the fact that I was in the second year of school and could claim the Hope Tax Credit I would have paid some tax last year. I would get most back... but not all of it.

Then there's social security tax, medicare tax, NC state tax, local property tax, sales tax, city rain tax (yes Greensboro has a rain tax), carpet tax (I'm making this one up) ....

Tell me again how much tax I pay????

Mark.

if we accounted for the second kid into our taxes this past year we would have still paid about 5,000 in taxes after really working it. Lots of deductions, and exemptions. Still paid well over 6,000 in taxes last year.

He is such an asshat I did two figurings because "with a family of two" probably means (in his small mind) a couple with two kids.

The TAX on a couple with no kids making $40K is $2,514
The TAX on a couple with 2 kids making $40K is $1,554

You can check my math.
http://www.irs.gov/pub/irs-pdf/i1040gi.pdf

Now you would get a child tax CREDIT but that doesn't mean you don't pay taxes during the year and yes you would get money back but you do pay taxes.

Child Tax Credit You may be entitled to a child tax credit for each of your qualifying children. A qualifying child is your son or daughter, adopted child, grandchild, stepchild, or foster child who is:
Under age 17 at the end of
A United States citizen or resident alien, and
Claimed as your dependent on your tax return.

http://www.irs.gov/newsroom/article/0,,id=106182,00.html

With the Child Tax Credit, you may be able to reduce the federal income tax you owe by up to $1,000 for each qualifying child under the age of 17.

A qualifying child for this credit is someone who meets the following criteria:
• Dependent Is claimed as your dependent
• Age Was under age 17 at the end of 2005
• Relationship Is your son, daughter, adopted child, grandchild, stepchild or eligible foster child, your sibling, stepsibling or their descendant
• Citizenship Is a U.S. citizen or resident alien

The credit is limited if your modified adjusted gross income is above a certain amount. The amount at which this phase-out begins varies depending on your filing status:
• Married Filing Jointly $110,000
• Married Filing Separately $ 55,000
• All others $ 75,000

Now you would get a child tax CREDIT but that doesn't mean ...

from the post above. I should have said that that is for the couple with 2 kids (obviously).

I haven't played with a W-4 in eons so I'm not sure.

with child care you could really get a nice refund...I think-I don't know if you can take it to add to your refund. Either way Hastert doesn't know what he is talking about.

and thus paying zero in withholding. Big "audit me" flag...

http://www.irs.gov/pub/irs-pdf/fw4.pdf?portlet=3

(Meant to say W-4 instead of W-2 in previous post)

The person making 40K could, I believe, deduct 20% of legitimate child care expenses (up to a certain limit). The % that can be deducted increases as the taxable income decreases. But you still need to earn a decent hourly wage to make paying for child care financially worth it.

that we can just throw all over every TV station in a commercial within the next few months?

"Here's what the GOP has to say about regualr working Americans:"

They're "borrowing" our social security money to run this government, and then telling us there's nothing in the trust fund AND that we don't pay taxes either. Our social security FICA taxes are subsidizing their tax give-aways and corporate subsidies.

Liberals say 50% is military spending & interest on war debt but conservatives say it's only around 17% or so, IIRC, because they include SSI in the budget.

when talking about taxes.

Each side will count it or not count it as a tax depending on the point they are trying to make that particular day.

Everyone I know who makes 40 pays taxes . Lets not forget sales tax and property tax and hell here ohio they tax your dogs hair cut now.

for all the years when I worked I never made $40K or anywhere near that amount. I always paid tax so all those years should be refunded because I must have been cheated by the government.

Last year I took a lump sum out of my retirement, which reduced my monthly retirement amount FOR LIFE, to have some cash on hand (which is now all gone due to the increased heating costs) and that caused me to have to pay tax on my small retirement when I filed this year. I didn't have a third of $40K so why did I have to pay income tax?

When a person is retired or disabled and are living on one source of income like social security or another retirement, I feel they should be taxfree. If you have additional sources of income then and only then should you pay income tax depending on the amount of income.

Hastert is a liar and should just shutup!

Sheesh, what an asshole.

:grr:

god i love living in his district. i sure hope the house goes democratic to get rid of this guys power because nothing he says will ever stop the people in his district from voting him in....

actually he used to be a decent guy but of course power does strange things to people

I would guess suburbs of Houston if I didn't know any better.

on edit, looked it up myself WHOOPS, why did I think he was from Texas?

received the Lifetime Learning Scholarship tax credit this year.

Used up Hope last year.

I also tried to itemize and was $300 short of making it.

I paid 2914 in taxes this year.

I want my fucking money back Fat Ass Hastert!!!!

:|

Sales taxes are TAXES, Speaker Hastert. They help pay for schools, local services, etc.

And what about property TAXES, Speaker Hastert? (Should they be renamed?) Even a family of four making $40,000 might be living in a modest home with a modest mortgage and paying property taxes.

And the extra 30-40 cents in gasoline we all pay. ISn't that a built-in TAX to help fund roads, etc?

Wake up Hastert.

Then WHY, when I file...do I not get a refund of EVERY PENNY that was already withheld? Maybe I'm not paying MUCH in taxes, but, damn...the amount I pay in taxes hurts me a hell of a lot more than the taxes a rich man pays hurts him!! At the end of the day, he still has FAR MORE left over than I do!!

What a fucking asshole!

This, of course, is to say NOTHING of the "hidden taxes" that we all pay, in that the wealthy generally are the suppliers of our goods and services, as business owners...and thus, they have the ability to pass on a portion of their tax liability onto consumers as part of the price of the goods/services!

We fucking pay more taxes, when you consider direct and indirect taxes...than those rich cocksuckers ever pay!

Isn't everyone a millionaire? That's how Republicans think.

I pay tons of sales tax, including sales tax on food. I live in a state where the residents refuse to have a non-regressive income tax in favor of a very regressive sales tax that makes the poor and middle class pay nearly 10 percent in taxes on a necessity.

So, yes, Denny, I DO pay taxes. Lots of them.

...Since it is apparently permissible to remove any adjective in front of 'taxes' my statement is just as honest and truthful as what Speaker Hassert said about the Federal Income Tax and a married family of 4 making 40K. In my case, I am referring to the Social Security Tax.

Both the person making $94.2K and the person make $900K would pay exactly $5840.40 in Social Security Taxes in 2006.

So who is Denny representin'? It sure isn't the people back home!

Btw, nice redistricting. Look at this frikkin map!

:evilgrin:

:rofl:

Boyhood home of Ronald Reagan...Once while traveling I had to stop for a nature call, I drove into town to shit after I saw the sign. :hurts:

They're trying to live on that income. Trust me, they know they pay taxes even if Hastert doesn't.

social security, medicare, state and local sales, gasoline excise, property tax, state and local income tax, excise tax on phone bill, etc etc etc!!!

I make about 40,000 a year.
I have three children.
The IRS says I owe $850 more than I paid last year.
If I don't pay taxes, wtf is the IRS bugging me for?

NO kids............that'll teach people to go against the will of GAWWWWDDDD.

this has long been the ivory tower result when all of our elected representatives are filthy rich

for those who earned less than $40k and paid income tax: make a copy of your income tax form (and w-2) -- and send it to hastert

for those who are nervous - black out your name/adress/ss# (but the bushies already have that information anyways)

O.K. than DENNY, Make it happen, but since you don't see the majority of Tax payers paying taxes, I guess it wouldn't matter. :mad:

The Daily Show explained the "tax cut" well, here's a link: <http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x2634468>