Like it Skinney. However could you help me find where the tax law says that prisoners don’t have to pay income tax?

Noah

Noah,

This was a joke someone sent me. I did not verify it for accuracy. Of course you are correct, prisoners are required to pay income tax. I deleted the section that said prisoners do not have to pay income taxes from the joke.

I should note prisoners are not eligible for the Earned Income Tax Credit (EITC). Specifically, the regulations state, "You can not use any income received for work performed while an inmate to claim EITC. This includes amounts for work performed while incarcerated, in a work release program, or while in a halfway house."

In my research to see if prisoners were required to pay income taxes, I uncovered another interesting bit of information.

Prisoners and Tax Fraud

Not only do prisoners generally have to file and pay taxes, but some take the opportunity to fill out fraudulent tax forms and receive a profit. In fact, the Treasury Inspector General for Tax Administration found that in 2010, more than 91,000 inmate returns claimed $758 million in fraudulent refunds. While the IRS claims that the majority of these fraudulent claims were stopped before being sent out the door, nearly $35 million made it into the hands of prisoners who did not qualify. Prisoners do this by either stealing identities, or inflating numbers on their returns in order to show that a lot of taxes have been withheld.

Skinny, I have read that the income tax credit is costing the the federal government–that’s us the tax payers–hundreds of millions (if not billions) of dollars each and every year and this is not just prisoners.

Another reason to get rid of the federal income tax and go with a federal sales tax ( or so called value added tax). This would stop this nonsense. Tax what people spend and the government would be out of out lives a lot more. All states have some type of sales tax and they could collect and forward the tax to the feds. But what would happen to the IRS employees and those who make a living assisting in filing these most complicated tax returns? Who cares!!!

This idea has a lot of merit.

As to your video these people are crazy. The college professors need to keep this screw balls in class and giving them a lot of home work to keep them busy or kick them out of school. so the real students can get an education and become a contributing part of society.

Doc

Not every state has some type of sales tax. New Hampshire does not have a sales tax.

Doc is right. We should have the federal sales tax. We do however have to do away with income and the other taxes first. All Americans would feel a pinch the first year, then things will get better starting the 2nd year. You could cut the IRS workforce by 2/3’s and just keep enough to do business tax returns.

There would be a minimum income level around $18K for a family of four below which would get supplemental
income to reimburse any taxes paid. The tax level would be around 24%, congress could not spend any more than they take in just like you and I. Right now you pay around 35% overall. Most other taxes would have to be repealed possibly excepting gasoline taxes. Gas taxes need to go up at least .05 a gallon or maybe even .10 to cover the infrastructure. A terrific program that will have a hard time passing. But it sure would be sweet!!

OneMoonCircles

Skinny,
You come up with the neatest stuff.
Keep it coming……

OMG: This was a joke about our wonderful econony and our system of entitlements and all of a sudden its a tax joke.

Jish, I loved the joke and its true intent Skinny.
Hope all is well.

PS Skinny: My bowling average is up to 161..Not bad for a wounded warrior/(knees,rotator cuff,biceps and back) 😀

"NickatNight" wrote: PS Skinny: My bowling average is up to 161..Not bad for a wounded warrior/(knees,rotator cuff,biceps and back) 😀

Good job Nick. Hang in there, work on making your spares and you will see it rise even further.

Lefties have an advantage in bowling. With fewer lefties throwing on your line the shot stays the same longer than it does on the right side for the right handed bowlers.

WOW! Know i thought the long hang time was because I had the ball polished, but the fewer lefties has my ball on the oil side.. thanks.

I was complaining that the last few times my ball just did not come in to the sweet spot like it had been in earlier weeks..
Thanks for the insite.!!

"PS Skinny: My bowling average is up to 161..Not bad for a wounded warrior/(knees,rotator cuff,biceps and back) :D"

Sounds like my golf game. 😮

Great joke, Great bowling.