187 replies to this topic

[Brew_Poke]

The 51 percent and 46 percent figures are anomalies that reflect the unique circumstances of the past few years, when the economic downturn greatly swelled the number of Americans with low incomes. The figures for 2009 are particularly anomalous; in that year, temporary tax cuts that the 2009 Recovery Act created — including the “Making Work Pay” tax credit and an exclusion from tax of the first $2,400 in unemployment benefits — were in effect and removed millions of Americans from the federal income tax rolls. Both of these temporary tax measures have since expired.

In 2007, before the economy turned down, 40 percent of households did not owe federal income tax. This figure more closely reflects the percentage that do not owe income tax in normal economic times.

These figures cover only the federal income tax and ignore the substantial amounts of other federal taxes — especially the payroll tax — that many of these households pay. As a result, these figures greatly overstate the share of households that do not pay federal taxes. Tax Policy Center data show that only about 17 percent of households did not pay any federal income tax or payroll tax in 2009, despite the high unemployment and temporary tax cuts that marked that year. In 2007, a more typical year, the figure was 14 percent. This percentage would be even lower if it reflected other federal taxes that households pay, including excise taxes on gasoline and other items.

Most of the people who pay neither federal income tax nor payroll taxes are low-income people who are elderly, unable to work due to a serious disability, or students, most of whom subsequently become taxpayers. (In years like the last few, this group also includes a significant number of people who have been unemployed the entire year and cannot find work.)

Moreover, low-income households as a group do, in fact, pay federal taxes. Congressional Budget Office data show that the poorest fifth of households paid an average of 4.0 percent of their incomes in federal taxes in 2007, the latest year for which these data are available — not an insignificant amount given how modest these households’ incomes are; the poorest fifth of households had average income of $18,400 in 2007. The next-to-the bottom fifth — those with incomes between $20,500 and $34,300 in 2007 — paid an average of 10.6 percent of their incomes in federal taxes.

Moreover, even these figures greatly understate low-income households’ total tax burden because these households also pay substantial state and local taxes. Data from the Institute on Taxation and Economic Policy show that the poorest fifth of households paid a stunning 12.3 percent of their incomes in state and local taxes in 2011.

When all federal, state, and local taxes are taken into account, the bottom fifth of households pays about 16 percent of their incomes in taxes, on average. The second-poorest fifth pays about 21 percent.

Center on Budget and Policy Priorities

[bluerules008]

There is plenty of money for government.

They need to stop paying off constituences with money they don't have and live within their means.

[HR_Poke]

So we should raise taxes to make the less privilaged feel better about their situation?

[Joe from WY]

j
Damn liberals.

[HR_Poke]

j
Damn liberals.

GO WYO!

[thedude15]

I only made 30k last year cause I only worked 5 months (recent college grad). By using the retirement savers credit and maxing out my IRA (5k limit) I ended up paying ZERO federal tax and about 1% state (keep in mid this is California we are talking about).

30k is not that much cash but it is not dirt poor and I did not have to pay taxes . Hell if I was living in a place with lower cost of living 30k would easily be enough for a single person to get by on.

This year I will be at 80k+ so yes I will have to pay the government my "fair" share.

[thedude15]

So we should raise taxes to make the less privilaged feel better about their situation?

Everyone who is above the poverty line (a line that should be increased a bit) SHOULD pay some tax. Maybe only 2-3% for the lower income people/houses (ie people who are currently paying NOTHING or even getting cash back) but it should be SOMETHING.

[Brew_Poke]

There is plenty of money for government.

They need to stop paying off constituences with money they don't have and live within their means.

They need to cut the DoD to one fifth of its size. Problem solved.

[nashvillepoke]

The progressive taxation policy is Marxist in nature

[HR_Poke]

They need to cut the DoD to one fifth of its size. Problem solved.

I wish....

[Brew_Poke]

The progressive taxation policy is Marxist in nature

LOL...no, not really.

[nashvillepoke]

LOL...no, not really.

It is the second plank of Marx's 10 planks of communism

[UNLV2001]

The statement that about half of U.S. taxpayers don't pay any income tax is often misinterpreted to mean that half don't pay any federal taxes at all.

http://www.washingto...heck/notax.html

[Road Apple]

The statement that about half of U.S. taxpayers don't pay any income tax is often misinterpreted to mean that half don't pay any federal taxes at all
http://www.washingto...heck/notax.html

I remember that Ron Reagan didn't pay any taxes and now I am wondering how many of the top 5% are part of Romney's 47% and if Romney is one of them.

[Billings]

j
Damn liberals.

weird that some of the red states are where the highest percentage of poor live who pay little federal income tax. The current tax code and loopholes favor the well who get to avoid paying a level of taxes that the middle class has to pay. Wealthy lobbyist have so screwed up the tax code it all needs to be thrown out and start over with no loopholes or exemptions

[UNLV2001]

I remember that Ron Reagan didn't pay any taxes and now I am wondering how many of the top 5% are part of Romney's 47% and if Romney is one of them.

Romney probably pays some low rate..............but he could be using capital losses to counter his gains............and since Romney's income is 90+% from investments, he's already subject to the smaller 15% capital gains tax.

Romney's problem might be his shorting the money he's supposed to send to LDS HQ in SLC?!?!?

[pokerider]

its been well documented over time that sales taxes and other state taxes cost the poor a higher rate of income.
for payroll taxes, 35% top rate is a pretty good bite. $200k = $70k tax whereas $30k income is about 15% or $4500
you make 6.6 times more but pay 15x more tax.

[HR_Poke]

weird that some of the red states are where the highest percentage of poor live who pay little federal income tax. The current tax code and loopholes favor the well who get to avoid paying a level of taxes that the middle class has to pay. Wealthy lobbyist have so screwed up the tax code it all needs to be thrown out and start over with no loopholes or exemptions

well you could always argue that poor people don't survive in cold states. Cold snaps kill em off.

[bluerules008]

I remember that Ron Reagan didn't pay any taxes and now I am wondering how many of the top 5% are part of Romney's 47% and if Romney is one of them.

Romney only paid $3.2 million in taxes in 2010 and gave away $7 million to charity.

That means he paid twice Obama's total earnings in taxes and gave away 5 times Obama's total earnings to charity.

It seems like to me Obama needs to pay more not Romney?

[Brew_Poke]

Political suicide? I’ll leave it to the pundits to analyze the impact Romney’s comments will have on his election prospects. (It should be noted, however, that while Romney does have an edge among high-income voters, billionaire Warren Buffett is hardly the only rich guy supporting the Democratic incumbent. See Millionaire Towns For Obama.)

But since I write about tax and budget issues, let me make a few serious points about the 46.4% of American households who paid no federal income taxes for 2011. First of all, according to the Tax Policy Center, more than 60% of those non-income tax paying households did pay federal payroll taxes—meaning Social Security and Medicare taxes. (Considering all Americans households, including those that owed income tax, 62% paid more in payroll taxes than in federal income taxes.)

What of the 18.1% of U.S. households that paid neither income nor payroll taxes? More than half of them were headed by a senior–in other words, by someone who paid payroll taxes and likely some income taxes too, in the past. (No, the amount the elderly have paid in does not cover the cost of the Medicare benefits they are now getting. And that is true despite the fact that in a Romney TV ad attacking Obamacare’s cuts to the growth in Medicare spending, an announcer seems to suggest otherwise, intoning: “You paid into Medicare for years, every paycheck…. So now the money you paid for your guaranteed healthcare Is going to a massive new government program that’s not for you.”)

Of course, it goes without saying, that those folks who aren’t paying federal taxes are almost all paying state and local taxes—state sales taxes, real estate taxes (either on their homes or built into their rents) and possibly state income taxes too, which tend to kick in at a lower income level. If they buy gasoline, liquor or tobacco, or have telephones, they’re also feeding the federal purse.

-snip-

Of course not all of those escaping income taxes have modest incomes. In 2009, according to Internal Revenue Service studies, six of the 400 U.S. tax filers with the highest adjusted gross income (meaning AGI of at least $77 million) paid no U.S. income tax, while 19,551 U.S. households with income above $200,000 owed no U.S. or foreign income tax.

-snip-

Forbes

[bluerules008]

I remember that Ron Reagan didn't pay any taxes and now I am wondering how many of the top 5% are part of Romney's 47% and if Romney is one of them.

You have a bad memory or you're just an idiot, unless you are contending that Ronald Reagon didn't pay any income tax in 1927 or some such stupid thing.

I realize it is hard for you morons to swallow but 47% of you are basically on welfare. Yes you might pay a few state or county taxes but most of that 47% are getting food stamps, welfare or some other government money above and beyond not paying taxes.

About 40% of the country not only doesn't pay income tax they get a refund of money they didn't pay in. They actually make money filing on their taxes.

The democrats have almost paid off half the country to vote for them. It is pretty close to being a country where the producers don't even have a say in tax policy and the leeches will determine where their money is spent.

[UNLV2001]

You have a bad memory or you're just an idiot, unless you are contending that Ronald Reagon didn't pay any income tax in 1927 or some such stupid thing.

I realize it is hard for you morons to swallow but 47% of you are basically on welfare. Yes you might pay a few state or county taxes but most of that 47% are getting food stamps, welfare or some other government money above and beyond not paying taxes.

About 40% of the country not only doesn't pay income tax they get a refund of money they didn't pay in. They actually make money filing on their taxes.

The democrats have almost paid off half the country to vote for them. It is pretty close to being a country where the producers don't even have a say in tax policy and the leeches will determine where their money is spent.

Who pays for your mental care?

[bluerules008]

Who pays for your mental care?

I do just like everything else.

I am not a welfare boy like you.

[flockofsmeagols]

Misconception - The average middle class family pays taxes.
Reality- Robe contributes roughly 76.25% of Federal Income Tax.
FACT.

[bluerules008]

The top 10% pay 77% of the bill.

How much money does Obama need?

Does everyone have to be on food stamps before he is happy?


If Obama gets his way he won't collect any more tax dollars. Corporations and the rich will just leave the country like they are already doing. Apple would have owed an extra 1/2 trillion dollars in taxes if they hadn't moved all their production overseas. You phukin jealous morons will cut off your foot to spite the rich and the whole country will suffer.