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Why The Wealthy Should Pay No Taxes And Poor People Like You Should Pick Up The Slack (and More!)
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Rand Objectivist
Jan 9, 2014, 7:34:12 AM1/9/14
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Politics More: Taxes
No, The Rich Do Not Pay 'All The Taxes'
Josh Barro
Dec. 13, 2013, 9:17 AM 20,199 65
inShare13
CNBC ran a story yesterday with the headline "The rich do not pay the
most taxes, they pay ALL the taxes."
The story has thousands of Facebook shares. And its premise is
completely false.
The article goes on to present data regarding the federal personal
income tax, which is indeed paid almost entirely by people with high
incomes. People with low incomes pay negative federal personal income
taxes (that is, the government sends them checks) because of the earned
income tax credit.
But "taxes" are not the same thing as "federal personal income taxes."
The federal personal income tax only made up 28% of all U.S. government
tax collections in 2012. Federal, state and local governments collected
$4 trillion in taxes last year; just $1.1 trillion of that was federal
personal income tax.
And people with low incomes who don't pay federal personal income tax
do pay lots of those other taxes: payroll tax, state income tax, sales
tax, property tax, excise taxes, and more. They pay other taxes
indirectly: Workers bear the burden of employer-paid payroll taxes and
part of the burden of corporate income taxes.
Here's a chart I made earlier this year showing the distribution of the
tax burden when you add all the taxes together. Earners in the top 1%
pay about 43% of their incomes in tax. People in the middle quintile
pay 25%. The poorest fifth pays 13%.
Rich people do pay a lot more taxes than poor people, both in absolute
terms and as a percentage of income. But the rich are not paying all
the taxes. And looking just at the federal personal income tax and
trying to draw conclusions about who pays "taxes" will lead you to
wrong answers.
P.S. While it's true that rich people pay most federal personal income
taxes, to get to CNBC's claim that they pay "all" federal personal
income taxes, you have to use a really expansive definition of "rich."
The Congressional Budget Office finds that payments by the top 40% of
the income distribution exceed the total of all net federal income tax
collections. (This is because many poor people have negative federal
income tax bills.) But that top 40% group includes single people with
incomes as low as $51,100 and couples with incomes of $72,300. Those
people aren't poor but it's a real stretch to say they're rich.
Read more:
http://www.businessinsider.com/no-the-rich-do-not-pay-all-the-taxes-2013-12#ixzz2pu6POlsX
No, The Rich Do Not Pay 'All The Taxes'
Josh Barro
Dec. 13, 2013, 9:17 AM 20,199 65
inShare13
CNBC ran a story yesterday with the headline "The rich do not pay the
most taxes, they pay ALL the taxes."
The story has thousands of Facebook shares. And its premise is
completely false.
The article goes on to present data regarding the federal personal
income tax, which is indeed paid almost entirely by people with high
incomes. People with low incomes pay negative federal personal income
taxes (that is, the government sends them checks) because of the earned
income tax credit.
But "taxes" are not the same thing as "federal personal income taxes."
The federal personal income tax only made up 28% of all U.S. government
tax collections in 2012. Federal, state and local governments collected
$4 trillion in taxes last year; just $1.1 trillion of that was federal
personal income tax.
And people with low incomes who don't pay federal personal income tax
do pay lots of those other taxes: payroll tax, state income tax, sales
tax, property tax, excise taxes, and more. They pay other taxes
indirectly: Workers bear the burden of employer-paid payroll taxes and
part of the burden of corporate income taxes.
Here's a chart I made earlier this year showing the distribution of the
tax burden when you add all the taxes together. Earners in the top 1%
pay about 43% of their incomes in tax. People in the middle quintile
pay 25%. The poorest fifth pays 13%.
Rich people do pay a lot more taxes than poor people, both in absolute
terms and as a percentage of income. But the rich are not paying all
the taxes. And looking just at the federal personal income tax and
trying to draw conclusions about who pays "taxes" will lead you to
wrong answers.
P.S. While it's true that rich people pay most federal personal income
taxes, to get to CNBC's claim that they pay "all" federal personal
income taxes, you have to use a really expansive definition of "rich."
The Congressional Budget Office finds that payments by the top 40% of
the income distribution exceed the total of all net federal income tax
collections. (This is because many poor people have negative federal
income tax bills.) But that top 40% group includes single people with
incomes as low as $51,100 and couples with incomes of $72,300. Those
people aren't poor but it's a real stretch to say they're rich.
Read more:
http://www.businessinsider.com/no-the-rich-do-not-pay-all-the-taxes-2013-12#ixzz2pu6POlsX
dca...@krl.org
Jan 9, 2014, 11:32:13 AM1/9/14
to
On Thursday, January 9, 2014 7:34:12 AM UTC-5, Rand Objectivist wrote:
> Politics More: Taxes
>
> No, The Rich Do Not Pay 'All The Taxes'
>
One thing that is left out of this post is that the benefits of the payroll taxes are heavily skewed in favor of the low income. Not saying that that is wrong, but the poor do receive a lot more from Social Security as a percentage of what is paid in.
> Politics More: Taxes
>
> No, The Rich Do Not Pay 'All The Taxes'
>
Now what sort of metal working have you been doing?
I need to build another pallet buster. I left the last one off the truck and when I passed that way again it was gone. The pallet buster is just a simple tool about like a wrecking bar, but it con straddle a two by four and has a short lever on each side.
Dan
Rudy Canoza
Jan 9, 2014, 11:49:38 AM1/9/14
to
[followups vandalism by unethical racist shitbag looter repaired]
On 1/9/2014 4:34 AM, stupid left-wing fuckstain blabbered:
On 1/9/2014 4:34 AM, stupid left-wing fuckstain blabbered:
> Politics More: Taxes
> No, The Rich Do Not Pay 'All The Taxes'
They pay far more than their share, of course.
> No, The Rich Do Not Pay 'All The Taxes'
Message has been deleted
Rudy Canoza
Jan 10, 2014, 1:19:38 PM1/10/14
to
[followups vandalism by unethical racist shitbag looter repaired]
On 1/9/2014 4:34 AM, unethical racist shitbag looter lied:
> Politics More: Taxes
> No, The Rich Do Not Pay 'All The Taxes'
They pay a greater share of tax than their share of income.
> No, The Rich Do Not Pay 'All The Taxes'
Sancho Panza
Jan 10, 2014, 3:02:17 PM1/10/14
to
already begun to increase and is scheduled to soar next year.
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Eddie Haskell
Jan 10, 2014, 3:33:24 PM1/10/14
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"Rudy Canoza" <LaLaLa...@philhendrie.con> wrote in message
news:d9f6d$52d03998$414e828e$18...@EVERESTKC.NET...
-Eddie Haskell
Thanks for all the free stuff -TeaBillies !
Jan 11, 2014, 7:14:42 AM1/11/14
to
Why do you support 1%er? You will never be invited to their party unless you clean toilets or wash floors.
Rudy Canoza
Jan 11, 2014, 11:25:52 AM1/11/14
to
On 1/11/2014 4:14 AM, Thanks for all the free stuff -TeaBillies ! wrote:
> Why do you support 1%er? You will never be invited to their party unless you clean toilets or wash floors.
>
Fuck off, troll.
> Why do you support 1%er? You will never be invited to their party unless you clean toilets or wash floors.
>
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