2007-12-03 04:02:24 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
What's the amount of money they start taxing you at?
2007-12-03 04:02:55 · update #1
Why do you have to pay taxes? What's the point? They tax you when you spend your money already and before you get it. It's taxed, then taxed, and then taxed, and if they can they'll tax it again and how many ever more times they can tax it till it's non existant.
2007-12-03 04:05:12 · update #2
Yes, you will pay taxes on any income you have. If your money is not underneath your mattress, then it is likely earning interest or dividends, or you may incur capital gains if you sell stocks (withdraw from a stock brokerage).
You have to pay taxes to maintain the streets you drive on and to provide the police and fire protection we all need. And many many more things.
2007-12-03 04:09:25 · answer #1 · answered by countryguyhfc 5 · 1⤊ 0⤋
Most folks with "tons of money" have a large income from their investments. So, yes, they pay income taxes on that income. Even if you just stuck it in a savings account at the bank, $10,000,000 would generate upwards of $300,000 in income each year. Invested in the stock market it could earn well over $1,000,000 per year if you're a savvy investor. That, in anyone's book, is a pile of taxable income either way!
You start paying taxes when your income exceeds the filing requirement amount for your filing status. That varies but for a Single taxpayer not the dependent of another taxpayer that would be $8,750 in 2007.
You pay taxes because the LAW says you must. Pure and simple!
2007-12-03 12:11:34 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
What you've just said is not very true! I'm not defending the taxation system, however being informed definitely helps you making better decisions. If you read the simple tax rules, there are so many ways to get credits and expense deductions which means legally you can reduce your tax table income. If you do not have any earned (means you worked to earn ) and or unearned (means investment interest etc) income, you do not have pay taxes. However, if you sold your personal car at gain, you have to pay tax! People who do not make tons of money, file returns to get credits (Earned Income Credit etc.,) or to receive refunds back (withheld amounts from the wages).
2007 filing requirement for single person (Under 65, not blind) -$8750
For detailed info check out below website, under filing information.
http://www.irs.gov/pub/irs-pdf/p17.pdf
2007-12-03 12:23:36 · answer #3 · answered by Q 3 · 0⤊ 0⤋
If you have tons of money and don't work, you probably have income from investments unless you have the money buried in tin cans in your back yard or something.
Investment income is taxed. So if you have income above the limit to file, then yes you'd have to file and pay tax. The limit for someone who is single, has no dependents, is under 65, is not a dependent is $8750 for 2007.
2007-12-03 13:18:01 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
You may have to pay taxes if you are making interest on your tons of money. Paying taxes on income generated is federal law (United States Code Title 26).
2007-12-03 12:53:42 · answer #5 · answered by Gary 5 · 0⤊ 0⤋
If you don't work and don't have income, you don't pay income tax. If you don't work and do have income (from investments or pensions) you do pay income tax. You will owe other taxes--sales and property taxes--directly or indirectly no matter what. If you do not find this acceptable, find your own island.
2007-12-03 12:07:15 · answer #6 · answered by Anonymous · 1⤊ 0⤋