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Only the Middle Class Pays Taxes

August 14, 2008

I am slowly starting to realize that only the middle class pays taxes in the United States The big problem in this country is that the middle class continues to shrink and considering our countries deficit we will not be able to sustain ourselves much longer. Let me elaborate why they end up paying most of the taxes.

As fair warning some of the things being said in this article may offend quite a few people, so if you disagree feel free to comment.

Poor people don’t pay taxes frankly because they don’t file them. The IRS never audits these people because a few hundred dollars will barely cover the cost of the tax man coming after them.

The middle class that pays taxes are the wage slaves who work 5 days a week 9 to 5 slaving at their jobs to provide for themselves and their family. These are the people who get screwed the most when it comes to taxes.

When Johny receives his paycheck almost a third is already deducted for taxes. Even though Johny went to school, got a degree, and has what he things is a great job, no matter what he does he just can’t seem to get ahead. Here is the reason why Johny is suffering and why only people like him pay taxes.

The way our tax structure is designed business owners and the rich can create many tax breaks for themselves. Johny can’t write off any of his expenses and needs to pay for food, entertainment, internet, housing out of his after tax income.

The rich on the other hand can create a tax shelter where they have a business which allows them to write off things like housing (if you work from home), your travel, and your meals along with many other expenses that may arise. These people often times set up bank and business accounts over seas to add even more opportunity to skip on paying taxes.

There also plenty of other opportunities that frankly the wage slave will never have the time or know how to investigate.

One example of avoiding taxes is something called a 1031 exchange . This is basically a like kind property exchange that allows an owner of a property avoid paying taxes by trading properties. So if your property appreciated you can avoid paying capital gains tax.

I am sure there are plenty more examples, so if you have of any please leave a comment.

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2 comments

  1. Yes you are right. We are screwed, and there are fewer and fewer of us ever day. Soon we will retire, and have nothing to retire on. When we get sick we lose it all. So what do do? Do not even have 2 damn cents to go out to eat. Dot


  2. The midddle class “works 5 days a week 9 to 5 slaving at their jobs to provide for themselves and their family.” If that’s what the “middle class” is up to, then what is the working class doing?



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