Sunday, April 11, 2010

47% of Houses Will Pay no Federal Income Taxes For 2009

Almost half of American households will pay no federal income tax for 2009. About 40% of American households will actually have the federal government paying them. Roughly three quarters for the total tax revenue will be generated by just the top 10% of earners. We are quickly approaching a situation where a majority of people will can be voting for ever increasing big government spending because it does not effect them as they will not pay taxes, squeezing out the earners who would be unable to muster sufficient votes to overturn the death spiral.

http://finance.yahoo.com/news/Nearly-half-of-US-households-apf-1105567323.html

"Tax Day is a dreaded deadline for millions, but for nearly half of U.S. households it's simply somebody else's problem.

About 47 percent will pay no federal income taxes at all for 2009. Either their incomes were too low, or they qualified for enough credits, deductions and exemptions to eliminate their liability. That's according to projections by the Tax Policy Center, a Washington research organization.
...
The result is a tax system that exempts almost half the country from paying for programs that benefit everyone, including national defense, public safety, infrastructure and education. It is a system in which the top 10 percent of earners -- households making an average of $366,400 in 2006 -- paid about 73 percent of the income taxes collected by the federal government.

The bottom 40 percent, on average, make a profit from the federal income tax, meaning they get more money in tax credits than they would otherwise owe in taxes. For those people, the government sends them a payment.
"

5 comments:

  1. This is paranoid nonsense. No one but the most deluded can say that the bottom of the economic scale is better off then the top 1 percent even if they are paying a higher propotion of their income in taxes. Too bad during the 1950s. when the top earners were paying 90% as opposed to today, where even despite there share of the tax revenue they still controll an outsized portion of the country's wealth- that no death sprial ever happened and we had the most robust period of economic growth in the country's history.

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  2. @Ian Spencer Dubrowsky - I did not say the bottom was better off then the top. I am saying that we are close to a situation where a majority will be in a position to vote a minority spend more money on them.

    To simplify this, lets assume 100 people with majority control. If 51 people are getting money from taxes, and more taxes means more money to those 51, what incentive would they have to vote for less taxes. The 49, the ones who are being squeezed by ever increasing taxes will not be able to muster the votes to reverse the trend.

    ReplyDelete
  3. In your head I'm sure that makes sense, but let me put this as politely as I can: you are lying.

    http://www.nytimes.com/2010/04/14/business/economy/14leonhardt.html?partner=rss&emc=rss

    http://crooksandliars.com/jon-perr/republicans-resurrect-welfare-charge-for-tax-day

    This is a good example of the bizarre class antagonisms that the American Right-Wing now loves to play- fear mongering that the richest will be taken ashunder by the gaping desperate masses. You should just admit you are a vulgar marxist.

    http://www.thedailyshow.com/watch/tue-april-13-2010/that-s-tariffic

    ReplyDelete
  4. Here's some more on why this is a lie, :

    http://taxvox.taxpolicycenter.org/blog/_archives/2010/4/15/4506088.html

    "Let me close with two questions: Do those who reflexively oppose all tax hikes now favor raising taxes on elderly widows and low-income working families? And what would these critics of small government suggest we do with the revenue windfall this tax hike on the poor would generate? Help finance a cut in the estate tax, perhaps? "

    http://keithhennessey.com/2010/04/15/off-the-rolls/

    "It’s easy for Republicans to complain today about the end result. They (we) have an out in that they can point to the EITC as one of the causes. But much of this outcome is driven by tax policy changes initiated and expanded by Republicans.

    If you wanted to work within the current income tax system and reverse some of this trend, broadening the income-taxpaying base, you’d be hard pressed to get a big effect just by raising the bottom rates. To affect millions of people you’d need to either scale back EITC or the per-child tax credit. I think both are highly unlikely."

    until you want to address this information I don't know what conclusion you think anyone should come to unless they were blocking out certain information for political convenience.

    ReplyDelete
  5. @Ian Spencer Dubrowsky - It is the left that likes to use class warfare, not the right. I am definitely not a 'vulgar marxist'.

    The conclusion is that there is something wrong with our tax system.

    ReplyDelete

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