• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

47% of households will pay no federal taxes

B

BlahBlahYouToo

Lifer
so half of us are paying for the other half.
i don't like this progressive tax bs one bit...

Text

NEW YORK (CNNMoney.com) -- Most people think they pay too much to Uncle Sam, but for some people it simply is not true.

In 2009, roughly 47% of households, or 71 million, will not owe any federal income tax, according to estimates by the nonpartisan Tax Policy Center.

Some in that group will even get additional money from the government because they qualify for refundable tax breaks.

The ranks of those whose major federal tax burdens net out at zero -- or less -- is on the rise. The center's original 2009 estimate was 38%. That was before enactment in February of the $787 billion economic recovery package, which included a host of new or expanded tax breaks.

The issue doesn't get a lot of attention even as lawmakers debate how to pay for policy initiatives like health reform, whether to extend the Bush tax cuts and how to reduce the deficit.

The vast majority of households making up to $30,000 fall into the category, as do nearly half of all households making between $30,000 and $40,000.

As you move up the income scale the percentages drop.

Nearly 22% of those making between $50,000 and $75,000 end up with no federal income tax liability or negative liability as do 9% of households with incomes between $75,000 and $100,000.

Of course, income taxes don't tell the whole story. Workers are also subject to payroll taxes, which support Social Security and Medicare.

When considering federal income taxes in combination with payroll taxes, the percent of households with a net liability of zero or less is estimated to be 24% this year, according to the Tax Policy Center's estimates.

A key reason why there is a zero-liability group at all is because the U.S. tax system is progressive. Those who bring in more money pay more than those lower down the income scale to support government functions such as national defense and social safety nets like Medicaid for those in need. That progressivity can be dialed up or down.

"Some think it's too progressive. Some don't think it's progressive enough," said Roberton Williams, a senior fellow at the center.

President Obama falls into the latter camp. He has proposed increasing the income tax burden on families making more than $250,000 and individuals making more than $200,000, while offering new measures to reduce the tax bite for most Americans making less.

One of Obama's proposals is to extend the 2001 and 2003 Bush tax cuts for everyone except high-income tax filers, which was the group that derived the most benefit from those cuts.

As a result, under Obama's budget, he would keep the ranks of the non-payers higher than they would otherwise be.
Why the tax-free matter

The question of who pays and who doesn't is not a trivial matter. But Washington policymakers are not dealing with it in an explicit way.

And that's a problem, given the country's fiscal outlook.

If asked to vote up or down on whether they are comfortable with such a large group of voters contributing no federal income tax or payroll tax revenue, the majority may well decide it is appropriate given the means of the households involved. Or they may decide that it's not.

Either way, that decision should inform the debate about the many costly policies and deficit-reduction strategies that lawmakers will be grappling with for years to come.

"As the number [of nonpayers] becomes larger, we have to question whether we'll make good decisions about how to allocate resources," economist George Zodrow, a professor at Rice University. "Most people don't understand how skewed the tax distribution is."

Experts say that to pay for all the things on the country's growing tab, the money can't just come from a shrunken pool of taxpayers.

"Over the long run, you'll have to have a broader base," Zodrow said. To top of page
Click to expand...
 
lots of peoples incomes are down 40% or more. What do you think would happen during an economic downturn?
 

Perhaps this just means that your average American is becoming poorer or at least that the lower classes are becoming poorer? Could it mean that the upper classes are enjoying increased prosperity at the expense of the lower classes?
 
Originally posted by: JSt0rm01
lots of peoples incomes are down 40% or more. What do you think would happen during an economic downturn?
Click to expand...

Maybe government should *gasp* cut spending. Then again, congress voted today to increase congressional spending.

In any event, do you not think that the incomes of the 'rich' are also down?
 
Originally posted by: WhipperSnapper

Perhaps this just means that your average American is becoming poorer or at least that the lower classes are becoming poorer? Could it mean that the upper classes are enjoying increased prosperity at the expense of the lower classes?
Click to expand...

Bullshit. The USA has the richest lower class in the world.
 
Originally posted by: Patranus
Originally posted by: WhipperSnapper

Perhaps this just means that your average American is becoming poorer or at least that the lower classes are becoming poorer? Could it mean that the upper classes are enjoying increased prosperity at the expense of the lower classes?
Click to expand...

Bullshit. The USA has the richest lower class in the world.
Click to expand...

QFMFT
 
Hell I wouldn't mind making so much income where I had to pay 50% of it in taxes, I'm sure that goes for most people struggling to make ends meet.
 
Originally posted by: Patranus
Originally posted by: WhipperSnapper

Perhaps this just means that your average American is becoming poorer or at least that the lower classes are becoming poorer? Could it mean that the upper classes are enjoying increased prosperity at the expense of the lower classes?
Click to expand...

Bullshit. The USA has the richest lower class in the world.
Click to expand...

I'd like to see you back that up because there isn't a shred of truth to that statement.

I'll bet you five hundred thousand pounds right now if you want to and i'll prove you wrong so fucking fast your head will spin all the way around.

Most of the first world nations take better care of their most poor than the US does. This is fucking common knowledge to anyone with a brain, something you do not seem to have at all.

Perhaps your cerebral cortex just isn't done yet?
 
And this is why a bunch of people have problems with government run healthcare. Half the people are going to get it and not pay a fucking dime toward it. You should have to pay SOMETHING so at least you respect where its coming from.
 
Originally posted by: JohnOfSheffield
Originally posted by: Patranus
Originally posted by: WhipperSnapper

Perhaps this just means that your average American is becoming poorer or at least that the lower classes are becoming poorer? Could it mean that the upper classes are enjoying increased prosperity at the expense of the lower classes?
Click to expand...

Bullshit. The USA has the richest lower class in the world.
Click to expand...

I'd like to see you back that up because there isn't a shred of truth to that statement.

I'll bet you five hundred thousand pounds right now if you want to and i'll prove you wrong so fucking fast your head will spin all the way around.

Most of the first world nations take better care of their most poor than the US does. This is fucking common knowledge to anyone with a brain, something you do not seem to have at all.

Perhaps your cerebral cortex just isn't done yet?
Click to expand...

ok prove it.
i'll bet you 5 thousand posts.
 
Originally posted by: Gonad the Barbarian
You guys complaining that you're paying all the taxes are free to make less money so you don't have too.
Click to expand...

And people that complain about the cost of insurance are free to stop using healthcare services so they don't have to pay so much.
 
Kinda makes those tea party guys look like f'ing morons, now doesn't it? I wonder how many of them pay $0 in taxes? Probably the same percentage of angry town hall guys who are on Medicare! :laugh:
 
"Nearly 22% of those making between $50,000 and $75,000 end up with no federal income tax"
How the hell do they manage that??????
I fit within that range and have a house with a mortgage to write off, and I pay a lot of federal income tax ....

The tax situation is fvcked up here .... The middle class pays, the rich find loopholes and get away with not paying, and the poor simply don't have to pay it.. Fvck that ... I'd almost rather see a flat tax that fvcks everyone over the same then the loophole laden overcomplicated system that doesn't even tax 1/2 of the population....
 
Originally posted by: DealMonkey
Kinda makes those tea party guys look like f'ing morons, now doesn't it? I wonder how many of them pay $0 in taxes? Probably the same percentage of angry town hall guys who are on Medicare! :laugh:
Click to expand...

:laugh:
 
Originally posted by: BurnItDwn
"Nearly 22% of those making between $50,000 and $75,000 end up with no federal income tax"
How the hell do they manage that??????
I fit within that range and have a house with a mortgage to write off, and I pay a lot of federal income tax ....
Click to expand...

We're just above that range. We adopted a few years ago and had two years of no tax liability due to the massive tax credits. I'm sure that's not how those people do it though. Would be nice to know.
 
Originally posted by: dainthomas
Originally posted by: BurnItDwn
"Nearly 22% of those making between $50,000 and $75,000 end up with no federal income tax"
How the hell do they manage that??????
I fit within that range and have a house with a mortgage to write off, and I pay a lot of federal income tax ....
Click to expand...

We're just above that range. We adopted a few years ago and had two years of no tax liability due to the massive tax credits. I'm sure that's not how those people do it though. Would be nice to know.
Click to expand...

A lot of people get their tax advice from ACORN.

EDIT: Excuse me, a lot of people USED to get their tax advice from ACORN.

hehehe.
 
Originally posted by: ImAnIdiot
Originally posted by: dainthomas
Originally posted by: BurnItDwn
"Nearly 22% of those making between $50,000 and $75,000 end up with no federal income tax"
How the hell do they manage that??????
I fit within that range and have a house with a mortgage to write off, and I pay a lot of federal income tax ....
Click to expand...

We're just above that range. We adopted a few years ago and had two years of no tax liability due to the massive tax credits. I'm sure that's not how those people do it though. Would be nice to know.
Click to expand...

A lot of people get their tax advice from ACORN.
Click to expand...
:roll:

 
Originally posted by: dainthomas
Originally posted by: BurnItDwn
"Nearly 22% of those making between $50,000 and $75,000 end up with no federal income tax"
How the hell do they manage that??????
I fit within that range and have a house with a mortgage to write off, and I pay a lot of federal income tax ....
Click to expand...

We're just above that range. We adopted a few years ago and had two years of no tax liability due to the massive tax credits. I'm sure that's not how those people do it though. Would be nice to know.
Click to expand...

I could see people who adopt being a small percentage, as well as foster parents, etc .... but the fact of the matter is that sadly, there aren't that many foster parents or people who adopt.

I guess this year was the 8,000 tax credit for buying a new house .... so maybe that would do it for a decent number of folks too ...

Anyhow .... congrats on your adoption! i know, I'm a few years late ... 🙂
 
Originally posted by: Patranus
Originally posted by: JSt0rm01
lots of peoples incomes are down 40% or more. What do you think would happen during an economic downturn?
Click to expand...

Maybe government should *gasp* cut spending. Then again, congress voted today to increase congressional spending.
Click to expand...

Coming up with this kind of advice NOW is comical at best. Of course spending wasn't a problem until around the beginning of this year... :roll:
 
Good. The tax system needs to be more progressive. The gap between the wealthy and poor hasn't been this high since the 20's. Bush really did a number on the federal debt by allowing it to grow without a way to reasonably pay some of it off in the long-run. Taxing the top 20% sounds about right. Though for now it'll be the top 5%.
 
Originally posted by: PJABBER
Originally posted by: dainthomas
Originally posted by: BurnItDwn
"Nearly 22% of those making between $50,000 and $75,000 end up with no federal income tax"
How the hell do they manage that??????
I fit within that range and have a house with a mortgage to write off, and I pay a lot of federal income tax ....
Click to expand...

We're just above that range. We adopted a few years ago and had two years of no tax liability due to the massive tax credits. I'm sure that's not how those people do it though. Would be nice to know.
Click to expand...

A lot of people get their tax advice from ACORN.

EDIT: Excuse me, a lot of people USED to get their tax advice from ACORN.

hehehe.
Click to expand...

The rich don't need ACORN giving them tax avoidance advice from amateurs. They have a multi-billion dollar industry to evade many billions in taxes. Right-wing scum are ok with it.
 
Topic: 47% of households will pay no federal taxes

That would be a lie.

Every one pays Federal gas tax.

Everyone pays Federal excise taxes.

Everyone pays social security and medicare taxes.

As a matter of fact, low and moderate income persons pay a much higher percentage of their income on these taxes.

And since 20-25% of this country has zero or negative net worth the entire premise of this thread is simply Fail.





 
You must log in or register to reply here.

TRENDING THREADS

Back
Top