Are some people really exempt from paying taxes? – Pay other taxes

Are some people really exempt from paying taxes? exempt from income tax for some reason, most people will still pay some form of tax. You have to pay VAT on goods you buy and property tax if you own a home. There are also user taxes such as those paid for petrol, tobacco, or alcohol.

Most people are required to pay Social Security and Medicare taxes if they work, but there are exceptions. While the Amish community pays state and federal income taxes as well as property and sales taxes, the group is exempt from paying Social Security or Medicare.

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This is because the Amish community views the Social Security tax as a form of commercial insurance and strongly opposes it. The group believes in self-sufficiency rather than relying on government aid programs. Amish families take care of their loved ones and their elders and take support from the community when needed. After clashes with the government, controversy over their rights, and public support for the Amish position, the US Congress exempted the Amish from participating in Social Security in 1965. They neither pay into the system nor use the benefits. They also cannot accept welfare or unemployment benefits [sources: Social Security, Amish America ].

Railway workers also do not pay social security contributions. However, the group is subject to a separate and distinct set of taxes set forth in the Railroad Retirement Act. These taxes are used to fund railroad workers’ retirement and to pay their unemployment benefits. The Railroad Retirement Board, an agency that operates independently of the government, administers these benefits and works closely with the Social Security Administration [source: IRS ].

Although the requirement to pay tax is not voluntary, some people are exempt. Age, ability and income level all affect the reasons for certain exemptions. If you don’t fall into one of the exempt groups, please remember that taxes are not bad. Tax revenue keeps the country running and benefits citizens through organized law enforcement, social security payments, community development programs, social services, and national defense. So this April, smile when you file!

Originally published: February 7, 2011