I have been debating a friend about whether or not he actually paid more income tax this year than "in the past decade" as he says.
One of his claims is:
""Because I got taxed on my unemployment (which I've already paid taxes on)""
When I asked for clarification he said:
"any "extra" taxes that my employer pays as a result of employing me means that he can afford just that much less for my pay...and I mean I've already paid taxes on it because the amount deducted from my check for unemployment counts as "income"...""
He's a libertarian, so we have been around these political and economic debates in the past... but this one has me stumped.
My thoughts?
- Indirect costs and overhead are not "yours" to claim as "income", regardless of their impact on your wages.
- Do unemployment insurance costs deducted from net pay count as income?
This is NOT for purposes of filing my actual return, so any education on this topic would be appreciated!