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THE TIPPING POINT: 51% of Americans now pay no federal income tax #1152592 2011-07-01 8:53 PM
Joined: Sep 2001 Posts: 25,469 Likes: 37 A glorious bold new America Wonder Boy brutally Kamphausened 15000+ posts
Wonder Boy brutally Kamphausened 15000+ posts Joined: Sep 2001 Posts: 25,469 Likes: 37 A glorious bold new America	51% of Americans Pay No Federal Income Taxes By Derek Thompson May 4 2011 Half of American tax payers owe no federal income tax, and most of those filers actually net tax benefits from federal income taxes, according to analysis from the Joint Committee on Taxation in a letter to the Republicans on the Senate Finance Committee. This is the kind of statistic that is bound to get traction as Osama news subsides, and here are two ways to look at it. THEY'RE STILL PAYING TAXES (MOST OF THEM, ANYWAY) The majority of households who pay no income tax still pay net taxes to the IRS. Federal income taxes account for about 40 percent of total government receipts. Most of the rest comes from payroll taxes, which workers of all income levels do pay. Since every dollar up to $106,800 is subject to taxes, a typical middle class family pays payroll taxes on all its income while a millionaire employee pays payroll taxes on only a tenth of his income. At the same time, there are Americans -- millions of them -- who really do pay practically zero overall taxes. About fifteen million American households, or 10 percent of all taxpayers, receive more cash from the IRS than they contribute in federal income taxes and payroll taxes. That's thanks to "refundable credits," tax credits that can bring your tax bill into negative territory. To some, these 15 million are low-income Americans benefiting from smart and targeted welfare run through the tax code. To others, they are unacceptable free riders, citizens with a vote but no stake in federal government. THE TOP 20% EARNS 50% OF THE INCOME The richest 20 percent of the country pays more than half of income taxes for two simple reasons: America's wealthiest 20 percent earns half the nation's income and their income is taxed at a higher rate. The Wall Street Journal brings the visuals: The wealthiest quintile's share of federal taxes has grown more rapidly than their share of income. This suggests that the rich are facing steeper taxes. Not so. Effective tax rates at the top have fallen in every decade since 1970. But since effective tax rates also fell for every other quintile, the share of taxes paid by the rich has increased. I have a feeling we're going to hear variations of the question: How can the rich be paying too much while income inequality is at an 80 year high? I think it's better to see both stats as a part of the same story rather than two conflicting narratives. In the last 30 years, incomes have grown faster at the top than the middle. Over the same time, effective tax rates fell for every family. And because a four percentage-point tax cut means a 50 percent tax cut for the poor but only a 10 percent tax cut for the rich, the share of overall taxes paid by the middle- and lower-class has decreased faster than their share of pretax income.

Re: THE TIPPING POINT: 51% of Americans now pay no federal income tax Wonder Boy #1152599 2011-07-02 1:32 AM
Joined: Sep 2001 Posts: 25,469 Likes: 37 A glorious bold new America Wonder Boy brutally Kamphausened 15000+ posts
Wonder Boy brutally Kamphausened 15000+ posts Joined: Sep 2001 Posts: 25,469 Likes: 37 A glorious bold new America	Despite the spin of this piece, that the wealthy are paying more in actual dollars, but paying less as a percentage of their income because the upper 20% of salaries are rising faster than the rest... that really doesn't manage to circumnavigate that more than half the population doesn't pay taxes. If 51% people don't pay for anything, they have less reason to be engaged in the political process and guard against waste and corruption. And they'll vote every time to give themselves free stuff that others will have to pay for them.

Re: THE TIPPING POINT: 51% of Americans now pay no federal income tax Wonder Boy #1152601 2011-07-02 2:31 AM
Joined: Jun 2003 Posts: 15,894 Likes: 52 Matter-eater Man Fair Play! 15000+ posts
Matter-eater Man Fair Play! 15000+ posts Joined: Jun 2003 Posts: 15,894 Likes: 52	You're forgetting about payroll taxes. Saying 51% don't pay anything isn't true. Also the very wealthy have extra advantages to the political process where their voice is more heard than the little guy. Fair play!

Re: THE TIPPING POINT: 51% of Americans now pay no federal income tax Matter-eater Man #1152602 2011-07-02 3:16 AM
Joined: Jun 2004 Posts: 46,308 Denver rex Who will I break next? 15000+ posts
rex Who will I break next? 15000+ posts Joined: Jun 2004 Posts: 46,308 Denver	Its a good thing the poor don't have a voice. Poor people shouldn't be heard at all. November 6th, 2012: Americas new Independence Day.

Re: THE TIPPING POINT: 51% of Americans now pay no federal income tax rex #1152614 2011-07-02 5:28 PM
Joined: Sep 2001 Posts: 25,469 Likes: 37 A glorious bold new America Wonder Boy brutally Kamphausened 15000+ posts
Wonder Boy brutally Kamphausened 15000+ posts Joined: Sep 2001 Posts: 25,469 Likes: 37 A glorious bold new America	Originally Posted By: rex Its a good thing the poor don't have a voice. Poor people shouldn't be heard at all. That's opposite what was stated. The poor do have a voice. And despite their lack of contribution, they now have unfair leverage over those who actually contribute to and build our economy.

Re: THE TIPPING POINT: 51% of Americans now pay no federal income tax Matter-eater Man #1152615 2011-07-02 5:32 PM
Joined: Sep 2001 Posts: 25,469 Likes: 37 A glorious bold new America Wonder Boy brutally Kamphausened 15000+ posts
Wonder Boy brutally Kamphausened 15000+ posts Joined: Sep 2001 Posts: 25,469 Likes: 37 A glorious bold new America	Originally Posted By: Matter-eater Man You're forgetting about payroll taxes. Saying 51% don't pay anything isn't true. Also the very wealthy have extra advantages to the political process where their voice is more heard than the little guy. SEIU, ACORN, and teacher unions are three examples where the reverse is true. In all these examples, angry mobs harass and intimidate to get what they want, in unsustainable deficit spending that will inevitably collapse the system, despite that their average salaries and benefits are higher than those in the private sector. In Minnesota, New Jersey and elsewhere these union members rage and whine about cuts to make the system sustainable, despite that the cuts STILL leave them with greater pay and benefits than the private sector.

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