9 Things The Rich Don't Want You To Know About Taxes

[Nic_Driver]

9 Things The Rich Don't Want You To Know About Taxes

For three decades we have conducted a massive economic experiment, testing a theory known as supply-side economics. The theory goes like this: Lower tax rates will encourage more investment, which in turn will mean more jobs and greater prosperity—so much so that tax revenues will go up, despite lower rates. The late Milton Friedman, the libertarian economist who wanted to shut down public parks because he considered them socialism, promoted this strategy. Ronald Reagan embraced Friedman’s ideas and made them into policy when he was elected president in 1980.

For the past decade, we have doubled down on this theory of supply-side economics with the tax cuts sponsored by President George W. Bush in 2001 and 2003, which President Obama has agreed to continue for two years.

You would think that whether this grand experiment worked would be settled after three decades. You would think the practitioners of the dismal science of economics would look at their demand curves and the data on incomes and taxes and pronounce a verdict, the way Galileo and Copernicus did when they showed that geocentrism was a fantasy because Earth revolves around the sun (known as heliocentrism). But economics is not like that. It is not like physics with its laws and arithmetic with its absolute values.

Tax policy is something the framers left to politics. And in politics, the facts often matter less than who has the biggest bullhorn.

1. Poor Americans do pay taxes.

2. The wealthiest Americans don’t carry the burden.

3. In fact, the wealthy are paying less taxes.

4. Many of the very richest pay no current income taxes at all.

5. And (surprise!) since Reagan, only the wealthy have gained significant income.

6. When it comes to corporations, the story is much the same—less taxes.

7. Some corporate tax breaks destroy jobs.

8. Republicans like taxes too.

9. Other countries do it better.



The Mad Men who once ran campaigns featuring doctors extolling the health benefits of smoking are now busy marketing the dogma that tax cuts mean broad prosperity, no matter what the facts show.

 

[whitehall]

9 Things The Rich Don't Want You To Know About Taxes

For three decades we have conducted a massive economic experiment, testing a theory known as supply-side economics. The theory goes like this: Lower tax rates will encourage more investment, which in turn will mean more jobs and greater prosperity—so much so that tax revenues will go up, despite lower rates. The late Milton Friedman, the libertarian economist who wanted to shut down public parks because he considered them socialism, promoted this strategy. Ronald Reagan embraced Friedman’s ideas and made them into policy when he was elected president in 1980.

For the past decade, we have doubled down on this theory of supply-side economics with the tax cuts sponsored by President George W. Bush in 2001 and 2003, which President Obama has agreed to continue for two years.

You would think that whether this grand experiment worked would be settled after three decades. You would think the practitioners of the dismal science of economics would look at their demand curves and the data on incomes and taxes and pronounce a verdict, the way Galileo and Copernicus did when they showed that geocentrism was a fantasy because Earth revolves around the sun (known as heliocentrism). But economics is not like that. It is not like physics with its laws and arithmetic with its absolute values.

Tax policy is something the framers left to politics. And in politics, the facts often matter less than who has the biggest bullhorn.

1. Poor Americans do pay taxes.

2. The wealthiest Americans don’t carry the burden.

3. In fact, the wealthy are paying less taxes.

4. Many of the very richest pay no current income taxes at all.

5. And (surprise!) since Reagan, only the wealthy have gained significant income.

6. When it comes to corporations, the story is much the same—less taxes.

7. Some corporate tax breaks destroy jobs.

8. Republicans like taxes too.

9. Other countries do it better.



The Mad Men who once ran campaigns featuring doctors extolling the health benefits of smoking are now busy marketing the dogma that tax cuts mean broad prosperity, no matter what the facts show.

It's a lie, poor people do not pay taxes. The wealthiest Americans do carry the burdon. Anyone can incorporate. Trying to turn "corporations" into the enemy is a deliberate attempt by socialists to encourage hatred for capitalism. Of course republicans like taxes. It's the only way to finance the government. Why use taxes to finance the murder of unborn humans or ten thousand other wasteful giveaway programs? Even Obama claims that government spending has to be curtailed.

 

[Robert]

9 Things The Rich Don't Want You To Know About Taxes

For three decades we have conducted a massive economic experiment, testing a theory known as supply-side economics. The theory goes like this: Lower tax rates will encourage more investment, which in turn will mean more jobs and greater prosperity—so much so that tax revenues will go up, despite lower rates. The late Milton Friedman, the libertarian economist who wanted to shut down public parks because he considered them socialism, promoted this strategy. Ronald Reagan embraced Friedman’s ideas and made them into policy when he was elected president in 1980.

For the past decade, we have doubled down on this theory of supply-side economics with the tax cuts sponsored by President George W. Bush in 2001 and 2003, which President Obama has agreed to continue for two years.

You would think that whether this grand experiment worked would be settled after three decades. You would think the practitioners of the dismal science of economics would look at their demand curves and the data on incomes and taxes and pronounce a verdict, the way Galileo and Copernicus did when they showed that geocentrism was a fantasy because Earth revolves around the sun (known as heliocentrism). But economics is not like that. It is not like physics with its laws and arithmetic with its absolute values.

Tax policy is something the framers left to politics. And in politics, the facts often matter less than who has the biggest bullhorn.

1. Poor Americans do pay taxes.

2. The wealthiest Americans don’t carry the burden.

3. In fact, the wealthy are paying less taxes.

4. Many of the very richest pay no current income taxes at all.

5. And (surprise!) since Reagan, only the wealthy have gained significant income.

6. When it comes to corporations, the story is much the same—less taxes.

7. Some corporate tax breaks destroy jobs.

8. Republicans like taxes too.

9. Other countries do it better.



The Mad Men who once ran campaigns featuring doctors extolling the health benefits of smoking are now busy marketing the dogma that tax cuts mean broad prosperity, no matter what the facts show.

So Umm just a thought but don't you find it strange that close to every political leader both Left for the most part and Right are in fact the "RICH" that you're whining about?

Do you really think it's strange that the laws are the way they are given that it is the Government leadership that creates those laws who also happen to be the rich you're crying about?

Futher don't you find it odd that these same rich people go into politics for the sole reason perhaps to control their taxes its clearly not for good intentions.

Or did you simply miss all of that

 

[PoliticalChic]

9 Things The Rich Don't Want You To Know About Taxes

For three decades we have conducted a massive economic experiment, testing a theory known as supply-side economics. The theory goes like this: Lower tax rates will encourage more investment, which in turn will mean more jobs and greater prosperity—so much so that tax revenues will go up, despite lower rates. The late Milton Friedman, the libertarian economist who wanted to shut down public parks because he considered them socialism, promoted this strategy. Ronald Reagan embraced Friedman’s ideas and made them into policy when he was elected president in 1980.

For the past decade, we have doubled down on this theory of supply-side economics with the tax cuts sponsored by President George W. Bush in 2001 and 2003, which President Obama has agreed to continue for two years.

You would think that whether this grand experiment worked would be settled after three decades. You would think the practitioners of the dismal science of economics would look at their demand curves and the data on incomes and taxes and pronounce a verdict, the way Galileo and Copernicus did when they showed that geocentrism was a fantasy because Earth revolves around the sun (known as heliocentrism). But economics is not like that. It is not like physics with its laws and arithmetic with its absolute values.

Tax policy is something the framers left to politics. And in politics, the facts often matter less than who has the biggest bullhorn.

1. Poor Americans do pay taxes.

2. The wealthiest Americans don’t carry the burden.

3. In fact, the wealthy are paying less taxes.

4. Many of the very richest pay no current income taxes at all.

5. And (surprise!) since Reagan, only the wealthy have gained significant income.

6. When it comes to corporations, the story is much the same—less taxes.

7. Some corporate tax breaks destroy jobs.

8. Republicans like taxes too.

9. Other countries do it better.



The Mad Men who once ran campaigns featuring doctors extolling the health benefits of smoking are now busy marketing the dogma that tax cuts mean broad prosperity, no matter what the facts show.

Welcome to the board, but try to do better research next time...

1. 1. “The top 5% pay about 58% of all Federal income taxes paid.

So if you raise their incomes, at the same tax rate, the Federal government will realize more revenue.

The bottom 50% of earners paid 2.7 % of Federal tax revenues.

The top 5% pay 33% of their income towards Fed income tax, while the bottom 50%, pay 13%” Milo40: The top 5% pay about 58% of all Federal income


2. . <1% owns half of the wealth, but the top 1% only earns about 20% of the income of a given year.

Also, "The top 5 percent earned 34.7 percent of the nation's adjusted gross income, but paid approximately 58.7 percent of federal individual income taxes."

The Tax Foundation - Summary of Latest Federal Individual Income Tax Data


3. Now let's look at percentage of taxes paid:
Bottom 20%: 0.8 (all federal) and -2.8 (income - they got $ back)
Next 20%: 4.1 and -0.8 (they also got $ back)
Middle 20%: 9.1 and 4.4
Next 20%: 16.5 and 12.9
Top 20%: 69.3 and 86.3%

This info is from the Census Bureau and the CBO. I doubt you have the ability, because anyone who blames successful people for their own problems probably doesn't have the sense to pour piss out of their own boots, but you are welcome to look it up.

No matter how you slice it, the US tax code is steeply progressive, taxes any dollar that a two-income household earns more heavily than a one-income household, penalizes extra effort, and gives back far more to low income households than it takes.
TaxProf Blog: ABC News: Bullied by the IRS


4. " In 2008, the top 1% paid 38% of all federal income taxes, and the top 5% paid 58%. Indeed, America is the industrialised world's champion of income-tax progressivity! If any country's upper-crust pays its fair share, America's does.

But you wouldn't know it listening to Mr Obama. He repeatedly and misleadingly portrayed the tax burden carried by America's top earners as unfairly light, and the top-rate tax cuts under President Bush as a leading cause of America's dire fiscal straits. He even proposed that itemised deductions available to every other American taxpayer be eliminated for the top 2%, which strikes me as precisely the sort of thing a country that values fairness would not do. In any case, to the extent our woes flow from a paucity of revenue, the problem is that America's vast middle-class pays too little, not that its rich do.

The widely-admired Scandinavian countries collect a much larger portion of GDP in taxes not because their top earners bear a relatively larger tax burden than do America's top earners, but because they don't. The president's confusion on this matter was evident in his open admission that "I agreed to extend the tax cuts for the wealthiest Americans because it was the only way I could prevent a tax hike on middle-class Americans".
Obama's budget plan: Unseriously unfair | The Economist

 

[Nic_Driver]

It's a lie, poor people do not pay taxes.

Gretchen Carlson, the Fox News host, said last year &#8220;47 percent of Americans don&#8217;t pay any taxes.&#8221; John McCain and Sarah Palin both said similar things during the 2008 campaign about the bottom half of Americans.

Ari Fleischer, the former Bush White House spokesman, once said &#8220;50 percent of the country gets benefits without paying for them.&#8221;

Actually, they pay lots of taxes&#8212;just not lots of federal income taxes.

Data from the Tax Foundation show that in 2008, the average income for the bottom half of taxpayers was $15,300.

This year the first $9,350 of income is exempt from taxes for singles and $18,700 for married couples, just slightly more than in 2008. That means millions of the poor do not make enough to owe income taxes.

But they still pay plenty of other taxes, including federal payroll taxes. Between gas taxes, sales taxes, utility taxes and other taxes, no one lives tax-free in America.

When it comes to state and local taxes, the poor bear a heavier burden than the rich in every state except Vermont, the Institute on Taxation and Economic Policy calculated from official data. In Alabama, for example, the burden on the poor is more than twice that of the top 1 percent. The one-fifth of Alabama families making less than $13,000 pay almost 11 percent of their income in state and local taxes, compared with less than 4 percent for those who make $229,000 or more.

 

[Nic_Driver]

The wealthiest Americans do carry the burdon.

This is one of those oft-used canards. Sen. Rand Paul, the tea party favorite from Kentucky, told David Letterman recently that &#8220;the wealthy do pay most of the taxes in this country.&#8221;

The Internet is awash with statements that the top 1 percent pays, depending on the year, 38 percent or more than 40 percent of taxes.

It&#8217;s true that the top 1 percent of wage earners paid 38 percent of the federal income taxes in 2008 (the most recent year for which data is available). But people forget that the income tax is less than half of federal taxes and only one-fifth of taxes at all levels of government.

Social Security, Medicare and unemployment insurance taxes (known as payroll taxes) are paid mostly by the bottom 90 percent of wage earners. That&#8217;s because, once you reach $106,800 of income, you pay no more for Social Security, though the much smaller Medicare tax applies to all wages. Warren Buffett pays the exact same amount of Social Security taxes as someone who earns $106,800.

 

[Nic_Driver]

Welcome to the board, but try to do better research next time...

1. 1. &#8220;The top 5% pay about 58% of all Federal income taxes paid.

So if you raise their incomes, at the same tax rate, the Federal government will realize more revenue.

The bottom 50% of earners paid 2.7 % of Federal tax revenues.

The top 5% pay 33% of their income towards Fed income tax, while the bottom 50%, pay 13%&#8221; Milo40: The top 5% pay about 58% of all Federal income

Thanks for the welcome!

Did you forget that the income tax is less than half of federal taxes and only one-fifth of taxes at all levels of government or are you just spewing the party line like a good sheep?

 

[PLYMCO_PILGRIM]

Nic_driver

When they said those groups dont pay "Any" taxes they should have said what they meant which was "Any federal income taxes"

Just wanted to inform you of that.

Carry on.....btw you should pay attention to politicalchic's post, she gave you some good info so you dont run around being duped into believing the type of stuff you put in the first post.

 

[Nic_Driver]

3. In fact, the wealthy are paying less taxes.

The Internal Revenue Service issues an annual report on the 400 highest income-tax payers. In 1961, there were 398 taxpayers who made $1 million or more, so I compared their income tax burdens from that year to 2007.

Despite skyrocketing incomes, the federal tax burden on the richest 400 has been slashed, thanks to a variety of loopholes, allowable deductions and other tools. The actual share of their income paid in taxes, according to the IRS, is 16.6 percent. Adding payroll taxes barely nudges that number.

Compare that to the vast majority of Americans, whose share of their income going to federal taxes increased from 13.1 percent in 1961 to 22.5 percent in 2007.

(By the way, during seven of the eight George W. Bush years, the IRS report on the top 400 taxpayers was labeled a state secret, a policy that the Obama administration overturned almost instantly after his inauguration.)

 

[Nic_Driver]

This info is from the Census Bureau and the CBO. I doubt you have the ability, because anyone who blames successful people for their own problems probably doesn't have the sense to pour piss out of their own boots, but you are welcome to look it up.

The actual share of their income paid in taxes, according to the IRS, is 16.6 percent.


But a good sheep like yourself wouldn't doubt what his leaders tell him to think.

 

[Leweman]

How much did Obama pay in taxes this year. A lot more then he had to no doubt right?

 

[asterism]

The wealthiest Americans do carry the burdon.

This is one of those oft-used canards. Sen. Rand Paul, the tea party favorite from Kentucky, told David Letterman recently that “the wealthy do pay most of the taxes in this country.”

The Internet is awash with statements that the top 1 percent pays, depending on the year, 38 percent or more than 40 percent of taxes.

It’s true that the top 1 percent of wage earners paid 38 percent of the federal income taxes in 2008 (the most recent year for which data is available). But people forget that the income tax is less than half of federal taxes and only one-fifth of taxes at all levels of government.

Social Security, Medicare and unemployment insurance taxes (known as payroll taxes) are paid mostly by the bottom 90 percent of wage earners. That’s because, once you reach $106,800 of income, you pay no more for Social Security, though the much smaller Medicare tax applies to all wages. Warren Buffett pays the exact same amount of Social Security taxes as someone who earns $106,800.

For the exact same benefit though. People for some reason forget this.

 

[R.D.]

Later this year, Johnston will be out with a new book, The Fine Print, revealing how big business, with help from politicians, abuses plain English to rob you blind.

LOL....I found this to be funny ironic

 

[martybegan]

The wealthiest Americans do carry the burdon.

This is one of those oft-used canards. Sen. Rand Paul, the tea party favorite from Kentucky, told David Letterman recently that “the wealthy do pay most of the taxes in this country.”

The Internet is awash with statements that the top 1 percent pays, depending on the year, 38 percent or more than 40 percent of taxes.

It’s true that the top 1 percent of wage earners paid 38 percent of the federal income taxes in 2008 (the most recent year for which data is available). But people forget that the income tax is less than half of federal taxes and only one-fifth of taxes at all levels of government.

Social Security, Medicare and unemployment insurance taxes (known as payroll taxes) are paid mostly by the bottom 90 percent of wage earners. That’s because, once you reach $106,800 of income, you pay no more for Social Security, though the much smaller Medicare tax applies to all wages. Warren Buffett pays the exact same amount of Social Security taxes as someone who earns $106,800.

The difference is that SS is technically not supposed to be a "tax", rather a commitment to pay for peoples retirement now, so others pay for yours later. Also a poor persons SS is still subsidized by the more well off as how much you get back does not scale 1:1 with how much you pay in.

You are also forgetting earned income credits, that often result in the poorest people getting actually paid at tax time from federal taxes.

The burden of sales taxes on the poor is also mitigated by the fact that items such as food, a substantial part of thier income is not taxed by sales tax. furthermore states often have the same deductions as the feds, eliminating a portion of income from taxation.

I would guess that for states with income taxes the breakdown of who pays what is also skewed to the wealthy.

 

[PoliticalChic]

Welcome to the board, but try to do better research next time...

1. 1. “The top 5% pay about 58% of all Federal income taxes paid.

So if you raise their incomes, at the same tax rate, the Federal government will realize more revenue.

The bottom 50% of earners paid 2.7 % of Federal tax revenues.

The top 5% pay 33% of their income towards Fed income tax, while the bottom 50%, pay 13%” Milo40: The top 5% pay about 58% of all Federal income

Thanks for the welcome!

Did you forget that the income tax is less than half of federal taxes and only one-fifth of taxes at all levels of government or are you just spewing the party line like a good sheep?

Now, see....you've exposed two of your weaknesses...

1. Left wing ideology is flawed by definition,
and

2. "...income tax is less than half of federal taxes and only one-fifth of taxes at all levels..."
Does this make sense to you? I'm sure it does, and to the other dolts who 'thanked' you...

Income tax accounts for an average of 12.24% of adjusted gross income for the nation as a whole. The Tax Foundation - Summary of Latest Federal Individual Income Tax Data

Therefore, now follow carefully, 'all taxes' would amout to 61.2055% of the adjusted gross income of the nation as a whole.

So, folks spend over 61% of their AGI in taxes?
Is that your precis?

Now that leads to several questions:
1. are you being manipulated by the left?
2. are you fibbing?
3. are you poor in math and political science alone,
or
4. are you pretty much an idiot, in general.

For your edification:
http://www.mymoneyblog.com/images/0908/moneygo900.jpg
US Dept of Labor, april 2009
Here’s an interesting graphic of the spending breakdown for the average U.S. consumer. It’s based a theoretical household “unit” consisting of 2.5 people, not individuals. Looks like such a household unit spends approximately $50,000 per year. Click on image for larger version.
Income before taxes $63,091
Average annual expenditures $49,638
2.5 in the family
1.3 earners, 67% are homeowners
Entertainment $2698 5.4%
Food 6133 12.4
Alcoholic Bev. 457 0.9
Healthcare 2853 5.7
Tobacco 323 0.7
Housing 16,920 34.1
Transportation 8758 17.6
(gas&oil) 2384` 4.8
Average food spending was $6133, of which $3465 was spent on meals at home. Based on this data, one can conclude that the average consumer unit spends roughly $300 per month on meals prepared at home and roughly $225 per month on meals away from home.
Each year, the average American spends $1881 on “apparel and services”, for example, but only $118 on books.
The chart doesn’t include taxes because the government survey doesn’t include taxes. If the average consumer unit earns $63,091 but spends $49,648, there are $13,443 unaccounted for. The personal saving rate in 2007 was less than 1%, so I’m guessing that most of the unspecified money goes to taxes.

So, folks spend 78.6768% of what they earn....


Does't lend credence to your post, does it?

 

[Nic_Driver]

2. "...income tax is less than half of federal taxes and only one-fifth of taxes at all levels..."
Does this make sense to you? I'm sure it does, and to the other dolts who 'thanked' you...

You're such a pleasant person with whom to converse.

Income tax accounts for an average of 12.24% of adjusted gross income for the nation as a whole

While other Federal taxes make up the other half of Federal taxes.

Therefore, now follow carefully, 'all taxes' would amout to 61.2055% of the adjusted gross income of the nation as a whole.

So, folks spend over 61% of their AGI in taxes?
Is that your precis?

No, my precis is income tax is less than half of federal taxes and only one-fifth of taxes at all levels. Social Security, Medicare and unemployment insurance taxes (known as payroll taxes), gas taxes, sales taxes, utility taxes and other taxes would make up the other 4/5ths of the taxes at all levels.

 

[Nic_Driver]

When they said those groups dont pay "Any" taxes they should have said what they meant which was "Any federal income taxes"

Right, another Republican ploy, "Not intended to be a factual statement"...that way they can say any outlandish thing they choose, incite any type of bigotry or hatred they want, instill a level of fear never before seen by man and then...simply claim they were providing an analogy, not a factual statement.

I, for one, am pretty sick of the deceit from the GOP and look forward to a return to the economy of the pre-Regan days and end this failed experiment

 

[Rozman]

I heard a caller to a radio station in New York City yesterday.He did a relatives taxes for him as he usually does...Apparently the guy didn't have a job for very long and paid a real low amount in Federal Taxes.
Because of some tax credit he is now getting a refund for $1,500.00 How is this possible?

Is this why the left needs more tax revenue so they can reward those that can't or don't want to work.

 

[Nic_Driver]

I heard a caller to a radio station in New York City yesterday.He did a relatives taxes for him as he usually does...Apparently the guy didn't have a job for very long and paid a real low amount in Federal Taxes.
Because of some tax credit he is now getting a refund for $1,500.00 How is this possible?

Is this why the left needs more tax revenue so they can reward those that can't or don't want to work.

Anecdotal evidence is so effective in debate...like the talking heads on Fox Noise claim, "Well, people are saying (***place ridiculous untruth here***)..."



I heard a caller in to a radio show claim he was superman and as such shouldn’t have to pay any taxes because of the service he provides to society.

Is this the reasons Republicans think the privileged should possess a disproportionate amount of the wealth in the nation? Because of the service they provide to society?

 

[Political Junky]

I heard a caller to a radio station in New York City yesterday.He did a relatives taxes for him as he usually does...Apparently the guy didn't have a job for very long and paid a real low amount in Federal Taxes.
Because of some tax credit he is now getting a refund for $1,500.00 How is this possible?

Is this why the left needs more tax revenue so they can reward those that can't or don't want to work.

Anecdotal evidence is so effective in debate...like the talking heads on Fox Noise claim, "Well, people are saying (***place ridiculous untruth here***)..."



I heard a caller in to a radio show claim he was superman and as such shouldn&#8217;t have to pay any taxes because of the service he provides to society.

Is this the reasons Republicans think the privileged should possess a disproportionate amount of the wealth in the nation? Because of the service they provide to society?

Yes, that seems to be the stock answer from republicons.