Only the Rich Pay Taxes - Oxycontin Boy

[rayboyusmc]

So do only the rich pay taxes? Of course, the question is a bit misstated as the IRS data looks at taxpayers according to their income, not their wealth, and looks only at income taxes, not all taxes. Still, the data does show that those whose incomes are in the top 5 percent (and likely about half of those in the 90 to 95 percent category) pay more than the average tax rate. This is hardly surprising, however, since we have a progressive income tax with a top marginal rate of 35 percent. Even the top one percent (who make over $364 thousand per year) pay an average tax rate of just 23.13 percent. Hence, the statement that "only the rich pay taxes" is obvious hyperbole.

U.S. Budget and Economy: Do Only The Rich Pay Taxes?

 

[PeterS]

U.S. Budget and Economy: Do Only The Rich Pay Taxes?

Only the rich pay taxes.
I pay taxes.
Therefore I'm rich!

Yepee!!!!

 

[Turboswede]

U.S. Budget and Economy: Do Only The Rich Pay Taxes?

It seems like a lot of folks around here think that only the rich pay taxes and that is just false. Am I the only one around here that knows there are other taxes than Federal Income Tax? First off everyone in America who receives a paycheck pays 12.4% in social security (6.2% employee, 6.2% employer) and 2.9% Medicare. That means every working stiff out there pays 15.4% of their GROSS income in federal taxes. In addition the tax only impacts the middle class as it is capped at $102,000.

In other words, whether you make $102,000 or $204,000 per year, the amount of SSI paid is the same.

In addition there federal fuel taxes that are paid by everyone that needs to fill their tank and these tend to have a greater impact on the middle classes than the wealthy.

There are other examples out there as well.

 

[WillowTree]

It seems like a lot of folks around here think that only the rich pay taxes and that is just false. Am I the only one around here that knows there are other taxes than Federal Income Tax? First off everyone in America who receives a paycheck pays 12.4% in social security (6.2% employee, 6.2% employer) and 2.9% Medicare. That means every working stiff out there pays 15.4% of their GROSS income in federal taxes. In addition the tax only impacts the middle class as it is capped at $102,000.

In other words, whether you make $102,000 or $204,000 per year, the amount of SSI paid is the same.

In addition there federal fuel taxes that are paid by everyone that needs to fill their tank and these tend to have a greater impact on the middle classes than the wealthy.

There are other examples out there as well.

and from which tax pool does the tax exempt status come from doyathink? When "rebates" are given from which pool does this money come from doyathink?

 

[Turboswede]

and from which tax pool does the tax exempt status come from doyathink? When "rebates" are given from which pool does this money come from doyathink?

?

I don't get your point. Tax exempt status is provided to organizations that are not run for a profit (Section 501(c) of the code); I don’t think I mentioned those. Are you saying that Churches and Charities need to be taxed?

The pool of money is the same ever since the social security trust fund was tapped for federal spending.

 

[strollingbones]

Only the rich pay taxes.
I pay taxes.
Therefore I'm rich!

Yepee!!!!

i never feel rich paying taxes

 

[Skull Pilot]

The Tax Foundation - America Celebrates Tax Freedom Day®

 

[editec]

I pay a higher percentage of my income in taxes than Warren Buffet does, folks and I am living in poverty by any federal state or local standard one cares to apply.

I am eligible for (and do not accept) every welfare opportunity this nation or my state offers.

So you wealthy-class pandering crybabies can just go cry me a river but don't expect me to be moved by their so-call plight.

 

[rayboyusmc]

I am looking for a good article that actually looks at what the rich "actually' pay in taxes. When you have a good lawyer, I don't, you can find ways to decrease your heavy load for the richies.

 

[Care4all]

I am looking for a good article that actually looks at what the rich "actually' pay in taxes. When you have a good lawyer, I don't, you can find ways to decrease your heavy load for the richies.

The highest earners, top 1% have a tax burden of about 20%...Buffet, richest man in America i believe, paid 19% in taxes he said, when he said that his secretary paid much more of her salary in taxes than he did...

 

[Care4all]

terresa heinz kerry had an effective tax rate of 20%

 

[DiamondDave]

But if someone were worried about true equality or equal burden... a blind eye of government not engaging in any class warfare or Robin Hood schemes... you would see a flat tax where every citizen pays the same percentage of their income to taxes... the rich still pay more in total and the poor still pay less.. everyone would have the same % of their income paid out to have the government infrastructure working for the country as a whole....

But for those who support punishment and redistribution, it is not really about fairness or equality... it is about the purchase of power.... it is also about the purchase of power by those who wish to have a complicated scheme so that loopholes can be taken advantage of by higher earners and corporations... I would personally throw so much support behind the candidate/politician with enough balls to propose the true flax system with the simplification of the tax code and the elimination of loopholes and most deductions

 

[editec]

Increase salaries for the working class.

Problem solved.

 

[Care4all]

But if someone were worried about true equality or equal burden... a blind eye of government not engaging in any class warfare or Robin Hood schemes... you would see a flat tax where every citizen pays the same percentage of their income to taxes... the rich still pay more in total and the poor still pay less.. everyone would have the same % of their income paid out to have the government infrastructure working for the country as a whole....

But for those who support punishment and redistribution, it is not really about fairness or equality... it is about the purchase of power.... it is also about the purchase of power by those who wish to have a complicated scheme so that loopholes can be taken advantage of by higher earners and corporations... I would personally throw so much support behind the candidate/politician with enough balls to propose the true flax system with the simplification of the tax code and the elimination of loopholes and most deductions

What's your take on Social Security taxes?

Do you think all income earned should be taxed with the flat rate?

I do not believe that giving the income tax to a flat rate without doing the same with social security taxes, of which the ss surplus is being used for what income tax revenues should pay for....would be fair at all...it would be UNFAIR....

also, how is your take on the poor paying less in income taxes than they are now if they go to a flat tax method, when they do not pay any now for the first 9k or so of their net income, as you do not pay any taxes on that portion of your income now either...make sure to note that in your head....the poorest get nothing that you don't get when it comes to their tax bracket and income...you are taxed at the same rate as they are for your first 9k or so....etc.

The poor does get an earned income credit to offset what they have also paid in payroll taxes...

how would the poor not pay more under a 10% flat tax situation if it is on their total income?

The only way i could see this working is if there was an 8 or 9k or whatever exemption per person in one's family before the flat tax kicks in...

this is giving this deduction to everyone, the same amount, so that someone rich or poor would have the same amount as a deduction on comparable households...?

THE ONLY people that would benefit from a flat tax as it stands now are the top two tax brackets who pay more than their share of taxes, while the bottom 3, where 95% of americans fall, pay less than their fair share of taxes is what i have read on it....

Care

 

[DiamondDave]

What's your take on Social Security taxes?

Do you think all income earned should be taxed with the flat rate?

I do not believe that giving the income tax to a flat rate without doing the same with social security taxes, of which the ss surplus is being used for what income tax revenues should pay for....would be fair at all...it would be UNFAIR....

also, how is your take on the poor paying less in income taxes than they are now if they go to a flat tax method, when they do not pay any now for the first 9k or so of their net income, as you do not pay any taxes on that portion of your income now either...make sure to note that in your head....the poorest get nothing that you don't get when it comes to their tax bracket and income...you are taxed at the same rate as they are for your first 9k or so....etc.

The poor does get an earned income credit to offset what they have also paid in payroll taxes...

how would the poor not pay more under a 10% flat tax situation if it is on their total income?

The only way i could see this working is if there was an 8 or 9k or whatever exemption per person in one's family before the flat tax kicks in...

this is giving this deduction to everyone, the same amount, so that someone rich or poor would have the same amount as a deduction on comparable households...?

THE ONLY people that would benefit from a flat tax as it stands now are the top two tax brackets who pay more than their share of taxes, while the bottom 3, where 95% of americans fall, pay less than their fair share of taxes is what i have read on it....

Care

I am with you on SS taxes... there should be no cutoff point... just a flat rate calculated as to be able to make SS self sufficient (and combine that with a law that makes it illegal to tap into those funds, as Clinton and other Presidents have done)

And as stated... I believe in no offsets or anything else.... a blind flat tax rate... the poor will still pay less of the tax burden and the rich will still pay more overall

It is not about punishing or whatever... it is indeed about equality

 

[rayboyusmc]

My first impulse is to say go with a flat tax with no exceptions, but not being an economics expert, I would have to research it more.

 

[user_name_guest]

It seems like a lot of folks around here think that only the rich pay taxes and that is just false. Am I the only one around here that knows there are other taxes than Federal Income Tax? First off everyone in America who receives a paycheck pays 12.4% in social security (6.2% employee, 6.2% employer) and 2.9% Medicare. That means every working stiff out there pays 15.4% of their GROSS income in federal taxes. In addition the tax only impacts the middle class as it is capped at $102,000.

In other words, whether you make $102,000 or $204,000 per year, the amount of SSI paid is the same.

In addition there federal fuel taxes that are paid by everyone that needs to fill their tank and these tend to have a greater impact on the middle classes than the wealthy.

There are other examples out there as well.

The cap is awful for social security. They shouldn't have a cap at all. But i guess people in Congress don't want to change that. If they did, they would lose some of their income from social security. Has any of the presidential candidates talked about getting rid of the cap of Social Security? They need to end the cap of $102k per year before 2010 or this country will be lacking funds to support social security.

Like someone said in this forum, if they had one tax rate and term limits in Washington, you wouldn't have lobbyist protecting something like a SS cap up to a certain income level.

 

[Navy1960]

I am looking for a good article that actually looks at what the rich "actually' pay in taxes. When you have a good lawyer, I don't, you can find ways to decrease your heavy load for the richies.

While the U.S. tax system is progressive, the distribution of government spending makes the overall fiscal system more progressive than is apparent from tax distributions alone. Using a microdata model we estimate the distribution of federal, state and local taxes and spending between 1991 and 2004. We find households in the lowest quintile of income received roughly $8.21 in federal, state and local government spending for every dollar of taxes paid in 2004, while households in the middle quintile received $1.30, and households in the top quintile received $0.41. Overall, tax payments exceeded government spending received for the top two quintiles of income, resulting in a net fiscal transfer of between $1.031 trillion and $1.527 trillion between quintiles. Both taxes and spending appear to have large distributional effects on households, and these effects have grown since 1991. The results suggest tax distributions alone are an inadequate measure of progressivity, and policymakers should examine both tax and spending distributions when judging the overall fairness of policy toward income groups.

The Tax Foundation - Who Pays Taxes and Who Receives Government Spending? An Analysis of Federal, State and Local Tax and Spending Distributions, 1991-2004

You may want to look here ray there is quite a bit of data, if you don't find what your looking for it is a good starting point.

 

[Care4all]

While the U.S. tax system is progressive, the distribution of government spending makes the overall fiscal system more progressive than is apparent from tax distributions alone. Using a microdata model we estimate the distribution of federal, state and local taxes and spending between 1991 and 2004. We find households in the lowest quintile of income received roughly $8.21 in federal, state and local government spending for every dollar of taxes paid in 2004, while households in the middle quintile received $1.30, and households in the top quintile received $0.41. Overall, tax payments exceeded government spending received for the top two quintiles of income, resulting in a net fiscal transfer of between $1.031 trillion and $1.527 trillion between quintiles. Both taxes and spending appear to have large distributional effects on households, and these effects have grown since 1991. The results suggest tax distributions alone are an inadequate measure of progressivity, and policymakers should examine both tax and spending distributions when judging the overall fairness of policy toward income groups.

The Tax Foundation - Who Pays Taxes and Who Receives Government Spending? An Analysis of Federal, State and Local Tax and Spending Distributions, 1991-2004

You may want to look here ray there is quite a bit of data, if you don't find what your looking for it is a good starting point.

I disagree with this, to a degree...

The reason why, is that this does not include tax monies spent on the very wealthy, where the poor would not benefit...for example the SEC and the treasury dept, and the FAA where a poor person may have never traveled by air for business or vacation in their entire lives...and may have nothing invested in the stock market or in our banks even...they spend all that they make...

This all would be to the advantage of the richer person, while it would NOT be included in this man's chart of expenditures that benefits each tax bracket group....

Can you see this...?

And this is just one aspect of the tax spending that our gvt does that benefits the richer people over those with less....

There is also HUGE no bid contracts and private contracts with private companies where the company and the executives benefit the most out of those gvt contracts, while the chamber maid or restaurant worker would not...

These things are not counted in these kind of charts...

ALL of this is a redistribution of wealth, not just TANF or welfare programs like the earned income credit...while tanf and EIC would be counted in this site's analysis, and keeping the other benefits of taxes that go to the wealthy out of the picture.... i believe this is deceiving of the tax foundation...and manipulated to show the stance they had already believed in...

Care

 

[Care4all]

Whether the individual wealthy person gets more back in taxes or the middle class person gets more back in taxes or the poor gets more back in taxes, it all goes back in to the economy in America if the poor and the middle and with the wealthiest, it is a hit or miss as to where it goes...

I am not talking about a company's earnings, i am talking about individual income taxes.