The Irony of It: I have to pay taxes to another government even when i don't pay to my own

News Type: Event — Sat Dec 15, 2007 10:22 AM EST

odd-news, money, usa, newsvine, earnings, taxes, irs, irony, taxing-international-payees

Mridul Chadha

Live Poll

Should the International users be taxed?

Yes
27%
No
73%

Total Votes: 22

Rolling Away!!

Photo by Josh. (License: Creative Commons Attribution)

I'm saddened by the fact that I would have give up quite a big chunk of my Newsvine earnings. A 30% tax is absolutely outrageous, it's just too much. They say I'll be able to 'redeem' it from the US Government but I see nothing that would make me believe that.

I don't pay taxes even in my own country. I'm studying for my graduation in Environmental Engineering & I don't do any job right now – so no taxes for me. However, I do pay Capital Gains Tax whenever I trade in the stock market. Whatever I make from the stock market in way below the minimum taxable income so again, no taxes.

But now have to pay tax to the US Government & for what? And I want to know where will this money go? What will the US Government do with my 30% tax? Will I get any benefits?

Frankly I don't have much problem in paying tax but a) The tax rate too high and b) The whole system lacks clarity, I don't know why I'm being taxed & where the tax money go. But I guess I don't have any choice.

Well now that I'll be paying tax I can boast about it in front of my friends :) And does anybody know if any of the candidates oppose taxing International payees :)

16 Votes
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Mridul Chadha's Column, All of Newsvine
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What's this?

Who's leading the conversation?

This visualization below allows you to see the impact that each user has on the current conversation. The top row contains the group of users who have had the most impact, the 2nd row the group of users who have had the 2nd most impact (et cetera). Users with similar impact are grouped together, and the average score of the group is shown to the left of the group. The author of the article is also shown on the left, in their corresponding group. Each user's score is based on the number of comments the user has made plus the number of votes their comments have received. The scores are calculated relative one another, so while their absolute value is not particularly important, their relative difference does indicate a larger difference in impact on the conversation.

9.6

5.9

{"commentId":1272780,"authorDomain":"mridulchadha"}

Mridul Chadha

Would we have to pay every time we get earnings or once a year? - Does anybody have any idea?

{"commentId":1272780,"threadId":"189702","contentId":"1165709","authorDomain":"mridulchadha"}

1 vote

#1 - Sat Dec 15, 2007 10:39 AM EST

{"commentId":1273169,"authorDomain":"acidreflux"}

AdipicAcid

Out of curiosity, what would the situation be for out of country earners if Newsvine were hosted in your home country? Would similar taxes be levied?

{"commentId":1273169,"threadId":"189702","contentId":"1165709","authorDomain":"acidreflux"}

1 vote

#1.1 - Sat Dec 15, 2007 1:02 PM EST

{"commentId":1274344,"authorDomain":"mridulchadha"}

Mridul Chadha

I used to be member of 2 sites which can be somewhat compared to Newsvine, on one of them the international users didn't have to pay any tax while on the other there was a very nominal tax (the tax rate was equal to what the national users had to pay). I suppose since it's an election year so the government levied taxes on foreigners - they can't afford to tax their own citizens & lose precious votes.

{"commentId":1274344,"threadId":"189702","contentId":"1165709","authorDomain":"mridulchadha"}

1 vote

#1.2 - Sat Dec 15, 2007 10:11 PM EST

{"commentId":1272927,"authorDomain":"ultimategfx"}

Mike B

I'm extremely iffy on the subject, especially as International users are already shafted on Newsvine. The 30% seems like a lot to me, and collecting these forms aren't worth the hassle to get my £5 I've earned over my time on here. Perhaps this is why we're being taxed so much, because many won't claim it back as they earn so little on here.

Essentially, for us International users, this is like losing a feature. My earnings now only count as another ranking number on the Newsvine system, like monopoly money or fake money in a video game.

{"commentId":1272927,"threadId":"189702","contentId":"1165709","authorDomain":"ultimategfx"}

3 votes

#2 - Sat Dec 15, 2007 11:32 AM EST

{"commentId":1273136,"authorDomain":"mrgeniussir"}

King of Newsvine

USA=#1...at collecting taxes. Next will be a fee to process the tax collection.

{"commentId":1273136,"threadId":"189702","contentId":"1165709","authorDomain":"mrgeniussir"}

4 votes

#2.1 - Sat Dec 15, 2007 12:48 PM EST

{"commentId":1274889,"authorDomain":"laughman"}

Laughman

Hey! You're the King. Do something about it!

{"commentId":1274889,"threadId":"189702","contentId":"1165709","authorDomain":"laughman"}

3 votes

#2.2 - Sun Dec 16, 2007 5:09 AM EST

{"commentId":1275100,"authorDomain":"mrgeniussir"}

King of Newsvine

My solution would be to make a flat tax of 20% for everyone. The problem is: I would get 100% of that tax.

{"commentId":1275100,"threadId":"189702","contentId":"1165709","authorDomain":"mrgeniussir"}

1 vote

#2.3 - Sun Dec 16, 2007 8:22 AM EST

{"commentId":1273166,"authorDomain":"thevineofhob"}

Adam Hobson

Death to all taxes!

{"commentId":1273166,"threadId":"189702","contentId":"1165709","authorDomain":"thevineofhob"}

3 votes

#3 - Sat Dec 15, 2007 1:01 PM EST

{"commentId":1273186,"authorDomain":"Brad-Leclerc"}

Brad Leclerc

I'm with ya on that lol. For the moment I'm holding off on the newsvine taxing issue until all the info is out (apparently in early January)...maybe then things will be a bit clearer, and easier to either deal with, or complain about hehe, as the case may be.

{"commentId":1273186,"threadId":"189702","contentId":"1165709","authorDomain":"Brad-Leclerc"}

3 votes

#3.1 - Sat Dec 15, 2007 1:07 PM EST

{"commentId":1278991,"authorDomain":"tang"}

Calvin Tang

Keep in mind, *Newsvine* is posting more about how taxes affect international contributors on or near Jan. 1, but all of that information is readily available now if you want to know more. Just go to irs.gov.

{"commentId":1278991,"threadId":"189702","contentId":"1165709","authorDomain":"tang"}

2 votes

#3.2 - Mon Dec 17, 2007 2:15 PM EST

{"commentId":1279019,"authorDomain":"ottawahitech"}

othDeleted

{"commentId":1279620,"authorDomain":"davjohn"}

davjohn

U.S. Tax Treaties

{"commentId":1279620,"threadId":"189702","contentId":"1165709","authorDomain":"davjohn"}

#3.4 - Mon Dec 17, 2007 5:12 PM EST

{"commentId":1279669,"authorDomain":"ottawahitech"}

othDeleted

{"commentId":1284002,"authorDomain":"davjohn"}

davjohn

You're right, it's not. The one you're looking for is United States Income Tax Treaties - A to Z You should find all you need there.

{"commentId":1284002,"threadId":"189702","contentId":"1165709","authorDomain":"davjohn"}

1 vote

#3.6 - Tue Dec 18, 2007 10:09 PM EST

{"commentId":1273670,"authorDomain":"onlineapps"}

Andy Min

All I can say is....

Huckabee 2008! ;-)

{"commentId":1273670,"threadId":"189702","contentId":"1165709","authorDomain":"onlineapps"}

3 votes

#4 - Sat Dec 15, 2007 4:23 PM EST

{"commentId":1289166,"authorDomain":"acidreflux"}

AdipicAcid

Yes, then we all have to pay the 30%.

{"commentId":1289166,"threadId":"189702","contentId":"1165709","authorDomain":"acidreflux"}

2 votes

#4.1 - Thu Dec 20, 2007 11:29 AM EST

{"commentId":1290084,"authorDomain":"onlineapps"}

Andy Min

Unless you only buy essentials. Then you won't pay ANYTHING (you get refunds for essentials).

{"commentId":1290084,"threadId":"189702","contentId":"1165709","authorDomain":"onlineapps"}

2 votes

#4.2 - Thu Dec 20, 2007 4:58 PM EST

{"commentId":1290098,"authorDomain":"acidreflux"}

AdipicAcid

So I still have to fill out a 1040. Then there will be exemptions and extras and we will be right back where we started.

{"commentId":1290098,"threadId":"189702","contentId":"1165709","authorDomain":"acidreflux"}

1 vote

#4.3 - Thu Dec 20, 2007 5:04 PM EST

{"commentId":1295504,"authorDomain":"davjohn"}

davjohn

Unless you only buy essentials. Then you won't pay ANYTHING (you get refunds for essentials).

What kind of essentials do you get refunds for? If you're speaking of itemizing, you have to exceed the standard deductions.

So I still have to fill out a 1040.

You still have a personal deduction of $3,400 and an individual standard deduction of $5,350, $10,700 for married filing jointly or $7,850 for head of household. Then there is the child tax credit up to $1,000 and the earned income tax credit.

{"commentId":1295504,"threadId":"189702","contentId":"1165709","authorDomain":"davjohn"}

1 vote

#4.4 - Sat Dec 22, 2007 2:31 PM EST

{"commentId":1296890,"authorDomain":"ottawahitech"}

othDeleted

{"commentId":1306726,"authorDomain":"davjohn"}

davjohn

Ah yes, quite true. EITC, Additional Child Tax Credit, Combat Pay, etc.

{"commentId":1306726,"threadId":"189702","contentId":"1165709","authorDomain":"davjohn"}

1 vote

#4.6 - Thu Dec 27, 2007 8:42 PM EST

{"commentId":1274397,"authorDomain":"davjohn"}

davjohn

Ok, I admit I've been out of the loop for a while. What's with the 30% tax? Tax on what? For what purpose? I know it would be silly of me to say that it makes no sense since few of our taxes do make sense, but I know of no 30% tax other than the tax on single, one-time payments, such as lottery winnings. The only thing I can think of is that a non-resident earns income from a US source.
I never looked into the earnings offered, so I know very little about them. Are we paid according to what is posted? Comments made? Articles written?
If one is paid as a contributor to Newsvine, one would be paid as a freelance author. It is the same as a journalist or an opinion-editors article selection. Payments are made to authors by contract. "If we use your article we will pay you $X." A good example is "World's Funniest Videos." TV show who says they will pay $100 if they use a submitted video. That is a misc. income paid and is claimed on line 21 on form 1040, added into line 7 on form 1040-A, or line 1 on form 1040-EZ as part of the gross income. The exception is when freelance contributions are the sole, or primary source of income. Then it would be self-employment income. Then it would be reported as a business. I do have a problem with paying taxes. Well, some taxes, anyway. Personal taxes should be paid to the state, not the fed. See Amendment X in Bill of Rights (Exclusive Rights of the States).
Personal taxes to the federal government were declared unconstitutional 4 times. The only reason title 26 became law was that it was originally considered to be a corporate tax, and a personal tax in the event of emergency.

{"commentId":1274397,"threadId":"189702","contentId":"1165709","authorDomain":"davjohn"}

1 vote

#5 - Sat Dec 15, 2007 10:45 PM EST

{"commentId":1274522,"authorDomain":"ottawahitech"}

othDeleted

{"commentId":1279017,"authorDomain":"ultimategfx"}

Mike B

Personally I think it would be interesting to see how many international users actually go through the trouble of cashing their money out from Newsvine any more. I have serious doubts that international users will now, as 30% is far too much.

{"commentId":1279017,"threadId":"189702","contentId":"1165709","authorDomain":"ultimategfx"}

1 vote

#7 - Mon Dec 17, 2007 2:20 PM EST

{"commentId":1279029,"authorDomain":"ottawahitech"}

othDeleted

{"canLink":false,"threadId":"189702","isPrivate":false}

Mike Huckabee's Fair Tax Fallacies	MotherJones.com	Fri Dec 14	5
Republican candidates understand biology better than economics	Guardian Unlimited	Mon Dec 17	19
The Fair Tax: America's Last Best Hope::By Mike S. Adams	townhall.com	Tue Dec 18	0

MRIDUL CHADHA

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The Irony of It: I have to pay taxes to another government even when i don't pay to my own

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