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A comment on Venmo, PayPal and Zelle must report $600 in transactions to IRS. Parent comment

Re:Venmo, PayPal and Zelle must report $600 in transactions ... by ahallock on Tuesday January 18, 2022 @12:30PM (#29982540)
Income tax was supposed to be temporary. It shouldn't even apply to people making under a certain amount because they have very little disposable income. The first say 50k, probably more, is eaten up pretty quickly by expenses. That's why so many people take out massive loans and go into credit card debt. I honestly think taxes like this are meant to subjugate what's left of the middle class and keep them from gaining financial traction.
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Re:Venmo, PayPal and Zelle must report $600 in transactions ... by whimsicalism on Tuesday January 18, 2022 @12:30PM (#29982554)
61% of Americans paid no federal income tax in 2020.
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Re:Venmo, PayPal and Zelle must report $600 in transactions ... by gruez on Tuesday January 18, 2022 @12:33PM (#29982594)
>Nearly 61% of U.S households paid no federal income taxes during pandemic-stricken year of 2020, because of declines in income and boosts to government subsidies that wiped away tax liabilities, according to data from the Urban-Brookings Tax Policy Center.

https://www.bloomberg.com/news/articles/2021-08-18/u-s-house...

In other words, it's a one-off. Failing to mention that is highly misleading.

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Re:Venmo, PayPal and Zelle must report $600 in transactions ... by legobmw99 on Tuesday January 18, 2022 @12:38PM (#29982678)
43.6% in 2019 for anyone curious like me

Source with both numbers: https://taxfoundation.org/us-households-paying-no-income-tax...

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Re:Venmo, PayPal and Zelle must report $600 in transactions ... by cma on Tuesday January 18, 2022 @01:24PM (#29983445)
It looks like they are including Puerto Rico (no federal income taxes)?
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Re:Venmo, PayPal and Zelle must report $600 in transactions ... by stjohnswarts on Tuesday January 18, 2022 @08:59PM (#29988912)
thanks you saved me from having to go look that up. Notice the person who posted that didn't also post how much of the wealth and revenue went to the upper 39% lol.
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Re:Venmo, PayPal and Zelle must report $600 in transactions ... by pessimizer on Tuesday January 18, 2022 @01:26PM (#29983479)
What percentage of those paid no payroll taxes?
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Re:Venmo, PayPal and Zelle must report $600 in transactions ... by tata71 on Tuesday January 18, 2022 @12:42PM (#29982747)
Figures don't lie,

but liars can figure.

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Re:Venmo, PayPal and Zelle must report $600 in transactions ... by tmaly on Tuesday January 18, 2022 @12:42PM (#29982749)
16th amendment grants the government the power to directly tax natural persons. The only true way to make something temporary is to revoke said power.
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Re:Venmo, PayPal and Zelle must report $600 in transactions ... by bumby on Tuesday January 18, 2022 @12:55PM (#29982938)
>Income tax was supposed to be temporary.

Yes. But when it was temporary there were also very little in terms of federal social programs that people have become quite fond of. Do you propose we get rid of those safety programs along with the income taxes that help pay for them?

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Re:Venmo, PayPal and Zelle must report $600 in transactions ... by chroem- on Tuesday January 18, 2022 @01:04PM (#29983102)
Unpopular opinion: it's not a social safety net if people stay on it as a lifestyle.
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Re:Venmo, PayPal and Zelle must report $600 in transactions ... by woodruffw on Tuesday January 18, 2022 @01:19PM (#29983355)
I'll take the even more aggressive tack than the other people who have replied to you: it actually is still a social safety net. Even people who (supposedly) bilk social safety programs have dependents, and those dependents do not deserve privation because you disapprove of their guardian's behavior.

Have a little perspective and focus your ire on our ridiculous military budget (which is also a welfare program, mind you) instead.

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Re:Venmo, PayPal and Zelle must report $600 in transactions ... by yardie on Tuesday January 18, 2022 @01:13PM (#29983274)
Great, let's get those people off of it. Any company that doesn't pay their employees a living wage should have their taxes balloon to offset that safety net.
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Re:Venmo, PayPal and Zelle must report $600 in transactions ... by bumby on Tuesday January 18, 2022 @02:04PM (#29984090)
I think we disagree on the definition of social safety net. Social safety nets “improve lives of vulnerable families and individuals experiencing poverty and destitution.” Sure, temporary assistance is a subset, but duration isn’t part of the definition. For example, pensions are part of the social safety net as is social security. Both (in theory) continue in perpetuity to fund ones “lifestyle”
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Re:Venmo, PayPal and Zelle must report $600 in transactions ... by kevingadd on Tuesday January 18, 2022 @01:10PM (#29983211)
I think "people who stay on it as a lifestyle" (how many is that, really?) are far less of a concern than the people who are stuck on it because even working 2-3 jobs isn't enough to climb out of poverty. Kroger and Walmart employees rely heavily on the social safety net, for example, and some of them are even homeless despite working (https://www.businessinsider.com/1-in-7-kroger-workers-homele...)
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Re:Venmo, PayPal and Zelle must report $600 in transactions ... by chefkoch on Tuesday January 18, 2022 @01:09PM (#29983201)
the good old welfare queen argument?
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Re:Venmo, PayPal and Zelle must report $600 in transactions ... by throwaway0a5e on Tuesday January 18, 2022 @02:22PM (#29984345)
Welfare queens are a rounding error. Manufacturing a persistent underclass is the problem.

There are tons of potentially productive members of society languishing because if they made any serious progress toward improving their lives they'd lose their benefits. The outcomes for children born into such households are... not great.

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Re:Venmo, PayPal and Zelle must report $600 in transactions ... by beamatronic on Tuesday January 18, 2022 @01:14PM (#29983282)
God forbid, we help 10 truly needful people at the cost of 1 person taking advantage.
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Re:Venmo, PayPal and Zelle must report $600 in transactions ... by genewitch on Tuesday January 18, 2022 @01:05PM (#29983117)
Disallowing corporations from putting their earnings in off shore banks and then taking low interest loans to pay for stuff in the US against their off-shore holdings. As an example.

I.e. close all tax loopholes, and make the tax code more sensible, so that you're not forced to cheat or end up uncompetitive.

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Re:Venmo, PayPal and Zelle must report $600 in transactions ... by cwkoss on Tuesday January 18, 2022 @01:15PM (#29983301)
How much revenue is raised from income taxes on people making <$50k?

Napkin math, I'd guess avg $5k from 100m people. Are we really collecting half a trillion dollars a year from people earning subsistence wages?

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Re:Venmo, PayPal and Zelle must report $600 in transactions ... by bumby on Tuesday January 18, 2022 @02:00PM (#29984021)
I think you’re misunderstanding my post.

I’m not saying it come tax is oppressing lower socioeconomic classes or that they disproportionately pay into it.

My point is the opposite. The income tax system helps those classes by funding social programs and we would either need to pare back those programs or find alternative ways of funding them

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Re:Venmo, PayPal and Zelle must report $600 in transactions ... by cwkoss on Tuesday January 18, 2022 @02:03PM (#29984076)
I started writing my comment with the assumption that low income earners weren't paying that much in taxes, then napkin math pointed that they may be paying an order magnitude more than my expectation. Is my napkin math accurate?
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Re:Venmo, PayPal and Zelle must report $600 in transactions ... by bumby on Tuesday January 18, 2022 @02:15PM (#29984239)
I don’t know. Maybe I’ll have time later today to look for research on the topic. I believe it’s the typical case that low income earners pay less (in federal tax, at least) as that’s the point of a progressive tax structure
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Re:Venmo, PayPal and Zelle must report $600 in transactions ... by conductr on Tuesday January 18, 2022 @12:48PM (#29982826)
> people making under a certain amount because they have very little disposable income

Then let them file and report it and pay no taxes like the current system intends

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