Monosyllabic Pedantry

Monday, April 13, 2009

In Honor of Tax Day

Everyone Should Pay Income Taxes
It's bad for our democracy to exempt half the country.

A very small number of taxpayers -- the 10% of the country that makes more than $92,400 a year -- pay 72.4% of the nation's income taxes.

Contrary to the myth that Mr. Bush cut taxes only for the wealthy, the 2001 tax cut reduced taxes for every income-tax payer in the country. He reduced the bottom tax rate to 10% from 15% and increased the refundable child tax credit to $1,000 from $500 per child, both cuts that President Barack Obama says we should keep. In so doing, millions of lower income taxpayers were removed from the tax rolls, shifting the remaining burden to those at the top, even after their taxes were cut.

According to the CBO, those who made less than $44,300 in 2001 -- 60% of the country -- paid a paltry 3.3% of all income taxes. By 2005, almost all of them were excused from paying any income tax. They paid less than 1% of the income tax burden.
All the while, this large group of voters made 25.8% of the nation's income.

For the bottom 40%, the redistribution deal is even better. In 2001, these 43 million Americans, who earn less than $30,500, made 13.5% of the nation's income but paid no income tax. Instead, they received checks from their taxpaying neighbors worth $16.3 billion. By 2005, those checks totaled $33.3 billion.

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Those of you who've read this blog from the beginning know that I'm in favor of at least a uniform tax rate. Sure, ideally, I think we should all pay the same dollar amount (for the same rights) but we don't have the prison structure to support that, so as a compromise, I'll concede to an equal percentage for everyone; no loopholes.

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5 Comments:

  • "According to the CBO, those who made less than $44,300 in 2001 -- 60% of the country -- paid a paltry 3.3% of all income taxes. By 2005, almost all of them were excused from paying any income tax."

    I make less than $44,300 every stinkin' year, and let me assure you, I am paying PLENTY of income tax.

    By Blogger rockygrace, at 8:18 AM  

  • Payroll taxes don't count, Skippy, since you are supposed to be getting that money back.

    Ha! Yeah, count on that one.

    By Blogger Exador, at 9:13 AM  

  • On the other hand, the government gets to keep your money for a looooong time before they give it back. Money makes money and they do invest it to make surplus funds that they do not give back. Payroll taxes do indeed fund the government.

    By Blogger Bridgett, at 7:39 PM  

  • I don't get ALL of my payroll taxes back, and I don't know anyone who does.

    By Blogger rockygrace, at 12:46 PM  

  • OH, Boo Hoo.

    By Blogger Exador, at 9:02 AM  

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