Replies

RE :” For tax year 2010, roughly 45% of households, or about 69 million, will end up owing nothing in federal income tax.... Does that mean that, after they subtract the amount withheld for income tax, they “end up owing nothing?” Or does it mean that their income tax is actually zero, and they get back all the money withheld in their refunds? “

It means they pay no federal income tax at all. If any money is withhold they get it back, and possibly more for tax credits.

RE: “ More than two-thirds — or 49 million of the 69 million households — pay payroll tax. Of those, 34 million end up paying more in payroll taxes than they get back on their federal return. The other 15 million pay payroll tax but they get enough refundable credits to offset what they paid. (Get a ‘receipt’ for your taxes).....Sounds like the title is misleading. If they withheld $5000 from your pay and you got $3000 in a refund, you still paid $2000 tax. Sounds like about half of the 45% actually did pay some income tax. ”

It is common now to call FICA/SS and medicare payroll taxes : ‘payroll’ taxes, especially by Democrats, . That is what he is talking about, not Federal income tax with-holding. These are the taxes that will entitle them to SS and medicare, and they do not even cover those two programs(SS/FICA taxes got cut a few months ago.) . They pay no Federal income taxes that go to medicaid, public education, wars(defense spending), green energy programs, , public school teachers, etc. But look at polls that ask about the option of congress cutting these programs or taxing the rich. You can tell which ones they pick.

As long as voters can vote for federal stuff that they dont have to pay for, Democrats will aways have the edge. They call this freeloading “ paying your fair share ” or “ investing in the future ”. If these Americans were overtaxed they would be worried about Federal spending not asking for more.

One discussion we will never hear in Washington is “ You cant be paying your fair share if you are paying nothing, ”

It is common now to call FICA/SS and medicare payroll taxes : ‘payroll’ taxes, especially by Democrats, . That is what he is talking about, not Federal income tax with-holding.

In that case, it is a poorly written article (although taxes are hideously complex, by design). The legal definition of "payroll tax" is "Payroll taxes are the state and federal taxes that you, as an employer, are required to withhold and/or to pay on behalf of your employees." That includes state taxes.

But now that I read the article again, I think you are right. The author kept using expressions like "nearly half of U.S. households end up owing no federal income tax when all is said and done." "End up?" Sounds like line line 76 of form 1040, "Amount you owe," which, even if zero, does not mean you have not paid any income tax, because that is after they subtract withholding, etc.

But finally, more than halfway through the article, she finally uses the more precise term, "Tax liability." Whew! Just talking about taxes makes me tired!

As long as voters can vote for federal stuff that they dont have to pay for, Democrats will aways have the edge.

May not quite "always." Obama and some Dems extended the Bush tax because, at that time, polls showed that's what voters wanted.

But now Obama is pretending that he hates Goldman Sachs and GE, using them as examples why we should raise taxes on small businesses. They will keep talking about taxing "the rich," and it may help them in 2012 if the GOP is unable to refute their arguments, but the Bush tax cuts will not expire for a couple of years.

In a way, that's good for the Dems, because the tax cuts give them something to attack (e. g. lower taxes "cause deficits"), while at the same time, they mitigate some of their destructive policies.