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Tax Fairness Reaches A Tipping Point
Investors.com ^ | March 16, 2010 | INVESTORS BUSINESS DAILY Staff

Posted on 03/16/2010 5:16:23 PM PDT by Kaslin

Fiscal Policy: The latest data show a record number of people with no tax obligation. We also have the highest-earning nontaxpayers ever. With more riding the wagon and fewer pulling, it should soon break down.

A record number of the 142 million tax returns filed in 2008 resulted in no taxes owed, according to the Tax Foundation's analysis of the latest IRS data. About 51.6 million returns, or 36.3%, were filed by those whose deductions, exemptions and tax credits wiped out any federal income-tax obligation.

These aren't people who have overpaid their taxes or had so much withheld from their paychecks that they'll get refunds. Those people owe taxes and merely provided the government with a zero interest loan until accounts are settled. These are people who pay no taxes at all.

There's been a 59% increase in the number of nonpayers since 2000, growing from 32.6 million in 2000 to 51.6 million in 2008. In the same period, the total tax filers grew by only 10%.

Not only are fewer people paying any taxes, but also the income levels for these nonpayers have steadily risen. A family of four earning more than $50,000 can have no income tax liability after taking the standard deduction and the child tax credit.

According to the Tax Foundation, "The major elements of the Economic Stimulus Act of 2008 boosted the maximum income for nonpayers to more than $56,700" — the highest ever.

(Excerpt) Read more at investors.com ...


TOPICS: Business/Economy; Editorial; Extended News; Front Page News; Government; News/Current Events
KEYWORDS: 111th; agenda; bendoveramerica; bho44; bhotaxes; bhotaxincrease; bushtaxcuts; business; congress; deathandtaxes; democrats; djsob; economy; eitc; fairtax; flattax; government; ibd; incometax; incometaxes; irs; keepthecuts; liberalfascism; nontaxpayers; obama; obamasamerica; progressiveincometax; redistribution; socialism; stimulus; taxation; taxburden; taxcut; taxcuts; taxes; taxfairness; taxfoundation; taxpayerstaxburden; taxrates

1 posted on 03/16/2010 5:16:23 PM PDT by Kaslin
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To: Kaslin

But, I thought the only people who got tax cuts were the rich?


2 posted on 03/16/2010 5:20:40 PM PDT by Trust but Verify
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To: Kaslin
In-f'ing-credible.

No wonder there are so many willing to vote for politicians who turn around & pass taxpayer-funded congressionally-mandated crap these days.

I have a strong feeling this will all end very badly and soon.

3 posted on 03/16/2010 5:20:41 PM PDT by skeeter
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To: Kaslin

Even worse, consider the abomination of Earned Income Credit. Millions of people pay NO taxes whatsoever, AND get thousands in “refunds.” For businesses that cater to the lower rungs of the socio-economic ladder, Tax Season, not Christmas, is the #1 season of the year. The recipients view this (accurately!) as free money, and they treat it as such. Great time of year for selling jewelry, car wheels, and other such “essentials.” And, if you’d like to be yet a little more infuriated on this fine day, rest assured that tons of these recipients have this system perfected to an art. They know exactly how much they need to earn during the year in order to qualify for the max “refund.” Many of them will stop work to avoid exceeding some number that might reduce their “refund.”

The EIC is the scam of all scams and I bet half the people of this country have no clue what a stupendous ripoff the whole thing is.

MM


4 posted on 03/16/2010 5:29:56 PM PDT by MississippiMan
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To: Kaslin

It’s easy to zero out my self-employemnt taxes. Just following the law.


5 posted on 03/16/2010 5:31:52 PM PDT by Rennes Templar
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To: MississippiMan

I just explained the EIC to my teenagers today. They thought I was wrong! Such a thing cannot exist! It doesn’t make sense!


6 posted on 03/16/2010 5:38:10 PM PDT by cookiedough
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To: Kaslin

happily, a lot of us might just be forced to into lower incomes because of bama.../sarcasm/


7 posted on 03/16/2010 5:43:48 PM PDT by cherry
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To: skeeter

“I have a strong feeling this will all end very badly and soon.”

Yeah, I have the same feeling.


8 posted on 03/16/2010 5:46:24 PM PDT by ought-six ( Multiculturalism is national suicide, and political correctness is the cyanide capsule.)
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To: MississippiMan

Between EIC and illegals and cash/bartering, we’re in for a ride of our lives. Especially when several of the groups start screaming when they have to pay some taxes.

Also, the SAD thing is that when you get EIC $$, it becomes a game how to make more money and still stay under the line to pay nothing so it becomes an ingrained behavior.


9 posted on 03/16/2010 5:53:41 PM PDT by YouGoTexasGirl
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To: Kaslin

FIRST LAW OF SYSTEMS:

IF YOU BUILD IT, PEOPLE WILL GAME IT.


10 posted on 03/16/2010 5:58:10 PM PDT by HKMk23 (Lost... Lost... All lost... [ref. "Hook"])
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To: MississippiMan
The EIC is the scam of all scams and I bet half the people of this country have no clue what a stupendous ripoff the whole thing is.

Proposed by Nixon, signed into law by Ford and increased under every administration since, with no exceptions.

11 posted on 03/16/2010 6:15:13 PM PDT by Graybeard58 ("0bama's not just stupid; He’s Jimmy Carter stupid”. - Don Imus)
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To: MississippiMan

The EIC is yesterday’s refundable tax credit. Here is the current list.

- Earned Income Credit
- First-time Homebuyer Credit
- Excess Social Security Credit
- Additional Child Tax Credit
- Health Coverage Tax Credit
- American Opportunity Credit – partly refundable
- Making Work Pay and Government Retiree Credits

You are right that the IRS has been turned into a welfare agency for the favored non taxpayers. Refundable tax credits provide a tremendous incentive for tax fraud as well as disincentive to produce. At a time of plunging tax revenues, refundable tax credits are a large part of the deficit explosion. I am sure that illegal aliens are receiving large amounts of tax welfare.


12 posted on 03/16/2010 6:16:45 PM PDT by businessprofessor
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To: Kaslin
What's to worry about? Income taxes in the U.S. are VOLUNTARY.

don't believe me?

Just ask Harry Reid.

http://www.youtube.com/watch?v=R7mRSI8yWwg

and THIS is the brainiac that is making laws WE have to live with.

13 posted on 03/16/2010 6:19:22 PM PDT by maine-iac7
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To: Kaslin

I’m one of the ones that pays through the nose.

And I’m very bitter about it.


14 posted on 03/16/2010 6:23:44 PM PDT by DB
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To: Kaslin

this how you create an oligarchy...with progressive taxation..the rest of the country sells the government to the top 10% of income taxpayers....

http://www.taxfoundation.org/news/show/22652.html

In such a country...your OPINION about YOUR healthcare only gets in the way of the Oligarchs’ plans....read, learn and act...now!!


15 posted on 03/16/2010 6:29:48 PM PDT by mo
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To: Kaslin

A government who robs Peter and gives it to Paul will always have Paul’s support.


16 posted on 03/16/2010 6:31:11 PM PDT by Tzimisce (No thanks. We have enough government already. - The Tick)
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To: Tzimisce
A government who robs Peter and gives it to Paul will always have Paul’s support.

And an ever-growing population of Pauls...and fewer Peters.

17 posted on 03/16/2010 6:35:57 PM PDT by okie01 (THE MAINSTREAM MEDIA: Ignorance on Parade)
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To: skeeter

This is not new. Recall the words of Alexander Tyler. Tyler lived in the 1700s so this self-destruction has been going on continually in history. Freedom is EXTREMELY FRAGIL, quickly and easily lost. We are losing it...

Per Tyler:

“A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the public treasury. From that moment on the majority always votes for the candidates promising the most money from the public treasury, with the result that a democracy always collapses over loose fiscal policy followed by a dictatorship.

“The average age of the world’s great civilizations has been two hundred years. These nations have progressed through the following sequence:

“From bondage to spiritual faith
“From spiritual faith to great courage
“From courage to liberty
“From liberty to abundance
“From abundance to selfishness
“From selfishness to complacency
“From complacency to apathy
“From apathy to dependency
“From dependency back to bondage.

—Alexander Tyler

We are racing toward our doom. The enemy within is causing our downfall. Now power but ourselves can destroy our Republic and push us toward tyranically Marxism. That is precisely what is happening.


18 posted on 03/16/2010 6:59:15 PM PDT by Freedom_Is_Not_Free (Depression Countdown: 43... 42... 41...)
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To: Graybeard58
Proposed by Nixon, signed into law by Ford and increased under every administration since, with no exceptions.

DemoRATs = hardcore socialists. Repubs = socialist lites....but eventually they end up where the RATs want to go.

It is way past time for a 2nd American Revolution. 100% of the demoRATs & about 80% of the Repub politicians, including the retired politicans of both parties need to frog marched into prison or to the gallows.

I think the bubble has got to burst very soon and when it does we will have Road Warriors style of anarchy, violence & warlords.

19 posted on 03/16/2010 7:31:01 PM PDT by rcrngroup
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To: Freedom_Is_Not_Free

Foreboding words were never more true!


20 posted on 03/16/2010 7:33:09 PM PDT by rcrngroup
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To: Kaslin

Like Dear old Dad always said - - “Once the parasites outnumber the producers in this country, it’s all over.”

Congratulations to the Democrats. They “won”.


21 posted on 03/16/2010 7:37:04 PM PDT by Lancey Howard
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To: ought-six

Seems like a pretty safe prediction. I do not see how it can end well.


22 posted on 03/17/2010 1:50:03 AM PDT by jospehm20
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To: DB

Me too.


23 posted on 03/17/2010 1:53:16 AM PDT by jospehm20
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To: Kaslin

If you think you can trust the government just ask the Indians. AMERICAS ENEMYS;THE DIMOCRATS AND ISLAM. No I didn’t misspell dimocrat.


24 posted on 03/17/2010 5:01:29 AM PDT by G-Man 1
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To: Kaslin

A year ago congress was bailing out the banking industry to the tune of $1 trillion. Then it was bailing out the auto industry. This week it’s socialized medicine. Next week it’ll be cap and tax. This an addiction to power and spending fueled by ever increasing debt. The demand isn’t going to abate until there is simply no more money to be spent.

Demand based solutions aren’t going to work. No junkie comes clean unless he/she has to. We need to start looking at supply side solutions. We need to cut the supply of money. The irony here is that conservatives are enabling the socialism.

One part of this is the tax burden that conservatives willingly carry. If you have taxable investments when tax free or tax preferred ones are available....why? Do you enjoy paying for this? Conservatives need to start thinking a little more about the tax implications of their actions.

Own savings bonds? T-bills? GNMAs? Are they the underlying investment in your money market account or 401(k)? If the answer is yes, then you’re subsidizing this just as surely as if you had scratched a check.

But what about the 5 ton elephant in the living room: the national debt? The ability to fund all this is tied to the ability to borrow. What if conservatives simply pushed for a polcy of repudiating the national debt, or more specifically that portion entered into since January 2009?

Therein lies a game changing strategy.


25 posted on 03/17/2010 5:13:00 PM PDT by RKBA Democrat (Lord Jesus Christ, Son of God, have mercy on me, a sinner!)
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To: rcrngroup

All he did was observe the death of democratic nations. We are right on course and on schedule.

It makes me extremely sad to see the death of Western Civilization in real time. Very sad. And depressed.


26 posted on 03/17/2010 5:23:31 PM PDT by Freedom_Is_Not_Free (Depression Countdown: 43... 42... 41...)
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To: Lancey Howard

Zero and other lefties always make the same erroneous assumption...that tax money will magically continue to flow into federal coffers in perpetuity like manna from heaven no matter what.

You’d think that it has never occurred to Hussein that crushing capitalism and corporate America is killing the Golden Goose...but is it exactly his intention via Cloward-Piven?

Zero’s recent “3000% savings” on health insurance premiums gaff is just more proof that he is a mathematically disfunctional idiot. Or is that just a mask?


27 posted on 03/17/2010 5:56:16 PM PDT by Zman516 (muslims, marxists, communists ---> satan's useful idiot corps <-- or, "corpse" as Zero puts it..)
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