50% of Americans do not pay income tax?

[RDD_1210]

I still say ideally we need a flat tax for all brackets on domestically earned income no higher than 10-15% for both individual and corporate income tax with no exemptions or credits... even income based.

You willing to stand up and say that?

I sure as hell won't. That's a massive cut for the wealthy and for corporations while a massive hike for the working poor. While at the same time leaving in place the payroll taxes, which the poor pay a higher percentage of their income on than the wealthy.

Basically, your plan would have it so that the more money you make the LESS is taken out in taxes.

Dumbasfuck... I'm not going to bother explaining basic economics and taxation to you. You're too blinded by dogma.

I really don't think you're qualified in the least bit to explain basic economics. We've established before you can't figure out what a payment plan looks like.

 

[Big Fitz]

I sure as hell won't. That's a massive cut for the wealthy and for corporations while a massive hike for the working poor. While at the same time leaving in place the payroll taxes, which the poor pay a higher percentage of their income on than the wealthy.

Basically, your plan would have it so that the more money you make the LESS is taken out in taxes.

Dumbasfuck... I'm not going to bother explaining basic economics and taxation to you. You're too blinded by dogma.

I really don't think you're qualified in the least bit to explain basic economics. We've established before you can't figure out what a payment plan looks like.

I'm about as qualified if not more so than the president. You've established nothing.

 

[Big Fitz]

Oh, and I forgot to ask, how would you handle the rapid rise in unemployment and unemployment insurance? I mean, after all, you're talking about firing a whole lot of people.

Better than Obama. That's how I'd handle it.

You could have just said "I don't know".

I could have said that and lied. How about this. I'll explain it when Obama releases his budget.

 

[RDD_1210]

Dumbasfuck... I'm not going to bother explaining basic economics and taxation to you. You're too blinded by dogma.

I really don't think you're qualified in the least bit to explain basic economics. We've established before you can't figure out what a payment plan looks like.

I'm about as qualified if not more so than the president. You've established nothing.

How do you figure?

Here is where you don't answer and look like a tool. And go...

 

[Big Fitz]

Basically, your plan would have it so that the more money you make the LESS is taken out in taxes.

You do realize that would cut the budget by about 2 trillion dollars, right? 1.8 really but it's not like we're to REAL money yet. Think that will help?

BTW, with the current tax structure last year the IRS collected 2.3 in gross receipts... Which would make for a budget surplus of 0.5 trillion. And to have it frozen there for 10 years? Nice! I'll take it.

 

[Big Fitz]

I really don't think you're qualified in the least bit to explain basic economics. We've established before you can't figure out what a payment plan looks like.

I'm about as qualified if not more so than the president. You've established nothing.

How do you figure?

Here is where you don't answer and look like a tool. And go...

Seriously? Wow. I'm sure a garbageman from Chattahoochee is probably better qualified. Obama's the least qualified president who ever lived... elected by white liberal guilt and the ability to obey a teleprompter.

 

[Lovebears65]

One thing they need to get rid of is the Earned income .. Its not fair if you get all your taxes back plus the earned income. How did you earn it?? My tax dollars are going to people who did not earn it. I could really use that money we put out for you guys to go shopping one time a year and blow it

 

[FurthurBB]

Historically there has always been a large (40% > ) number of Americans that do not pay income tax. Its because they don't have much INCOME. The bottom half of income earners have less than 2.5% of the nation's wealth. YOU CAN'T SQUEEZE BLOOD FROM A FUCKING STONE NO MATTER HOW MUCH YOU HATE IT.


Hey did you know millions of Americans don't pay any property taxes, either? And people who don't drive cars don't pay the gasoline tax, how dare they!

It should read almost 50% and the figure comes from the IRS

I remember,years ago when I made very little and filed my income tax with a tax amout of as little as $41. I paid $41 in income tax that year. I may have qualified for some of the endowmwnts ofered by the government and may have recieved a check that years. Regardless I paid $41 in income tax that year.

http://www.msnbc.msn.com/id/36226444/ns/business-personal_finance/t/half-us-pays-no-federal-income-tax/
"The bottom 40 percent, on average, makes 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."
Even if they "make a profit" the money they owe is deducted from that "profit" an thus they paid their taxes.
The problem is not with people not paying taxes. The problem is that the government elects to send them a check "because they are low income" that exceeds these taxes.

People should really read up on EIC and see why even Republicans think it is a good program. A couple of things i know is that the economy gets more money from EIC than is paid out and the government actually recoups over 1/2 of it in taxes. I read an argument from a republican congressman about how you could raise the EIC to twice what it is today and it would have a positive effect on the economy whereas raising the minimum wage even a little would have a negative effect. I guess I never thought about until people started complaining about it on these boards. Now I feel pretty well versed and agree that it is a good program that puts money back into the economy while encouraging people to work instead of collecting government benefits and it is the only social program that actually pulls people out of poverty.

 

[RDD_1210]

I'm about as qualified if not more so than the president. You've established nothing.

How do you figure?

Here is where you don't answer and look like a tool. And go...

Seriously? Wow. I'm sure a garbageman from Chattahoochee is probably better qualified. Obama's the least qualified president who ever lived... elected by white liberal guilt and the ability to obey a teleprompter.

Still waiting to hear how YOU are as qualified or even more so than Obama...

 

[Big Fitz]

How do you figure?

Here is where you don't answer and look like a tool. And go...

Seriously? Wow. I'm sure a garbageman from Chattahoochee is probably better qualified. Obama's the least qualified president who ever lived... elected by white liberal guilt and the ability to obey a teleprompter.

Still waiting to hear how YOU are as qualified or even more so than Obama...

Missed it, didn't you? I guess subtle isn't your strong suit. Oh well, your problem not mine.

 

[Charles_Main]

3 years ago, I started doing my own taxes again, it's easy to do online now.

since then, I have gotten more back than I have put in every year.

so unless my tax credits or breaks are removed/lowered, I will continue to get more back.

I don't know if the 50% claim is true, but the claim that it does occur is very true.

Man you people are lazy, Don't know if it is true? It takes less than 2 Mins Navigating the IRS web site to see the break down of Revenues collected last year. There it clearly shows that 51% of all Returns filed last year got all or more back in their Refund than they paid in Federal Income Tax withholding.

The Confusion about this FACT is rooted in the Fact that many people do not understand the difference between Federal Income Tax Withholding, and FICA and MC Withholdings. Or State Income Taxes for that matter.

 

[RDD_1210]

Seriously? Wow. I'm sure a garbageman from Chattahoochee is probably better qualified. Obama's the least qualified president who ever lived... elected by white liberal guilt and the ability to obey a teleprompter.

Still waiting to hear how YOU are as qualified or even more so than Obama...

Missed it, didn't you? I guess subtle isn't your strong suit. Oh well, your problem not mine.

Sad. You and your life.

 

[OohPooPahDoo]

50% of Americans do not pay income tax.

I have been hearing this mantra from the media and politicians for several weeks now. I have not seen any statistical or logical explanation of this statement.

I am hoping that, in this post, I can wrap my head around this monumental claim. How is it that Congress has allowed a set of rules to evolve that facilitates half of the country not paying income tax?

What I suspect is that the real situation involves a few Orwellian idioms which imply that many of these people are not paying income tax when, in fact, they are.

Let me first explain the Orwellian idioms:

Tax credit: A person with children gets a “tax credit”. It is applied to the amount owed the IRS for income tax. For each child $1000 “credit” is added. If that person has three children and owes $1,000 his income tax owed becomes -$2,000 ……..(1000x3) – 1000 = 2000…….. If this were actually a “tax credit” he would owe nothing and he would not receive any refund as he had “credit” for the amount he owed. The IRS ends up paying the man $2000 dollars. This makes the “credit” not a credit at all but an endowment.

Paid income tax: If a person did not make a payment to the IRS in any given year, he did not “pay income tax”
Did he pay income tax that year?

My assumption is that in the statement of “50% of Americans do not pay income tax.” He is included in not paying income tax as he was not required to write a check to the IRS.

In fact he did “pay his income tax” for that year. The IRS elected to pay him (not give credit for) $1000/child and he had three children.

He paid $1000 and received $2000 balance.

Please let me know if I am correct in assuming that these people are included in the 50% tally.

If not, how is it that the Federal Government has gotten us to a point that only half of our citizens pay income tax.

HEY, I'VE GOT AN IDEA, WHEN THE ECONOMY IS BAD, LETS RAISE TAXES ON THE POOR AND CUT THEM FOR THE RICH!

That's pretty much what you're getting at. The fact so many Americans aren't paying net income tax is because the economy is shitty and they have less INCOME. Fucking DUH.

I've got an idea! Since our country is going broke, let's not send as many endowments out at income tax time. I do not say cut them off altogether, but I do say that the American people now expect endowments at tax time whether we go broke or not.

Be specific.

 

[OohPooPahDoo]

If not, how is it that the Federal Government has gotten us to a point that only half of our citizens pay income tax.

Historically there has always been a large (40% > ) number of Americans that do not pay income tax. Its because they don't have much INCOME. The bottom half of income earners have less than 2.5% of the nation's wealth. YOU CAN'T SQUEEZE BLOOD FROM A FUCKING STONE NO MATTER HOW MUCH YOU HATE IT.


Hey did you know millions of Americans don't pay any property taxes, either? And people who don't drive cars don't pay the gasoline tax, how dare they!

30-40k a year isn't exactly poverty, and it wasn't in the last 10 years. That's what I made, and I always got back more than I put in. Yes there are low income folks, but there are also alot more that make enough and still get money back.

What a putz.

You're free to send a donation to the treasury if you feel bad about the child credits you got.

 

[OohPooPahDoo]

We need a fair flat tax in the US. No excuses, no exceptions and no loopholes. Having 50% of the people carry the other 50% is just downright unfair.

How are they carrying the other 50%? Is unemployment at 50%? I thought it was closer to 9%.

 

[Big Fitz]

Still waiting to hear how YOU are as qualified or even more so than Obama...

Missed it, didn't you? I guess subtle isn't your strong suit. Oh well, your problem not mine.

Sad. You and your life.

That's your idea of an insult, eh? hmm. well the bar was set low for you. I just didn't expect you to trip on it.

 

[OohPooPahDoo]

The original intent of this post was to debunk the notion that 50% of people were not paying taxes. It is already evident that they do pay taxes but get endowments to exceed their taxes.

You're only including "endowments" made through the IRS. Seems like an arbitrary distinction. For instance, a Pell Grant is an "endowment" - but you don't get it through the IRS. The same with farm subsidies.

 

[Chris]

One thing they need to get rid of is the Earned income .. Its not fair if you get all your taxes back plus the earned income. How did you earn it?? My tax dollars are going to people who did not earn it. I could really use that money we put out for you guys to go shopping one time a year and blow it

Yes, let's raise taxes on the backs of the working poor.

The bottom 50% of Americans control 2.5% of the wealth.

Damn freeloaders!

 

[OohPooPahDoo]

One thing they need to get rid of is the Earned income ..

Great. We'll just return to traditional welfare. Brilliant plan.

Its not fair if you get all your taxes back plus the earned income. How did you earn it??

Get your terminology straight moron.

My tax dollars are going to people who did not earn it. I could really use that money we put out for you guys to go shopping one time a year and blow it

The people who get it use it to put shoes on their children's feet. I'm losing sleep over it, its so unfair.

 

[auditor0007]

Look at the economy!!! Who has he done anything for!?!?!?!?

corporate profits are way up.

when will you catch on?

America has some of the highest corporate tax rates in the world.

How will raising taxes on those bastard rich people create jobs? How will it spur economic growth?!?!?!?

These are not effective tax rates; they are statutory tax rates. There is a very big difference, as the US effective rate is actually lower than most industrialized countries. The problem is that the bigger the corporation, the less they pay, while the smaller companies (the ones that really drive growth in the economy) do pay closer to the statutory rate.

We really should cut the rate and close the loopholes so that the mega corporations start paying their fair share, while reducing the rates for smaller companies that are likely to provide real growth in the future.

U.S. Corporate Taxes: 1955 v 2010 - International Business Times