Re: The Clintons Are Smart... sometimes...

Depends on what one mean by "tax writes off." Many seem to think "tax write off," means one takes an equal amount off of their taxes due. We often hear some say 'they just write it off their taxes' like it is "FREE." Not so, a "tax write off," means one takes that amount off their total amount of income, on which they will be taxed or their "adjusted" taxable income.

A tax credit on the other hand is an amount at which one taxs due, is reduced. If one gives $10,000 to a charity and is in the 43% tax bracket they are still out 57% of the amount given. If they did not give to the charity they would pay 43% in tax but still have the 57%. If one gives $100 and they can take a tax credit off their tax due, what ever the take rate may be, they are still out the $100 but they do not pay taxes on $100, what ever the take rate may be.

If you ask most people how much the pay in taxes they will say "I didn't pay any, I got a refund." In fact what the got was a refund of the extra amount withheld for taxes due. In essence they are lending the federal treasury hundreds, or even thousand of dollars for a year, interest free.

If you asked ten people I'll bet nine can not tell you how much they actually paid in taxes to the federal, state and local government in the past year. If they did they would not vote for ANY candidate promising to give them any more of that "free" government stuff. LOL

A tax write off: Open your own charity... donate to that charity... and >write it off on your taxes... > > Genius! > >

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except for the 18 million unacounted for ... > > -- > ____ > > --Boycotting the 2008 China Olympic Games-- > >
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Mike hunt
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