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'46% in U.S. don't pay taxes' only half the story
San Francisco Chronicle ^ | 8/8/11 | Joe Garofoli, Chronicle Political Writer

Posted on 08/08/2011 12:45:01 PM PDT by SmithL

For some California Tea Party conservatives, it has become a favorite statistic: Nearly half of Americans - 46 percent - don't pay taxes. The number is used to back up their claim that if that many people don't pay taxes, why should the wealthiest individuals pay more?

It is accurate in a sense - 46 percent of U.S. households aren't expected to pay federal income taxes this year.

"But most of those people do pay federal taxes" of some sort, such as payroll taxes, said Roberton Williams, a senior fellow at the Tax Policy Center, a center-left Washington think tank, and co-author of a widely cited report last month on who pays taxes.

Roughly half of those 76 million American households who don't pay federal income taxes are zeroed out because their income is too low, he said, while the other half - of all income levels - pay no federal income tax because of a variety of exemptions and loopholes.

"It's a much more nuanced story . . .

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


TOPICS: Editorial; Government; Politics/Elections
KEYWORDS: firepersons; johnkerry; nottooswiftboat; nuance; nuanced; planners; police; taxandspend; taxevasion; teachers; yacht; yourtaxdollarsatwork
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Nuanced?

Well that makes it all OK, I guess.

1 posted on 08/08/2011 12:45:05 PM PDT by SmithL
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To: SmithL
"But most of those people do pay federal taxes" of some sort, such as payroll taxes

Heaven forfend! They have to pay into their own Social Security and Medicare "entitlements"? Woe is them.

2 posted on 08/08/2011 12:49:15 PM PDT by Lancey Howard
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To: SmithL
"You know what word I'm not comfortable with? Nuance. It's not a real word. Like gesture. Gesture's a real word. With gesture you know where you stand. But nuance? I don't know. Maybe I'm wrong." - Modell from the movie "Diner"
3 posted on 08/08/2011 12:50:26 PM PDT by kosciusko51
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To: SmithL
Tax Policy Center, a center-left Washington think tank,

A contradiction in terms and violence to the English Language.
4 posted on 08/08/2011 12:52:21 PM PDT by truthguy (Good intentions are not enough.)
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To: SmithL

Nuanced = that which must be spun.


5 posted on 08/08/2011 12:53:45 PM PDT by NOVACPA
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To: SmithL
"But most of those people do pay federal taxes" of some sort, such as payroll taxes, said Roberton Williams, a senior fellow at the Tax Policy Center, a center-left Washington think tank, and co-author of a widely cited report last month on who pays taxes.

So what. And a lot of them get all of that - and often much more - through housing vouchers, food stamps, "free" job training/cell phones/school lunches, "crazy checks" for their children, etc., etc.

The net effect is that America has a huge parasitic underclass that needs to be weaned off the gubmint teat.

6 posted on 08/08/2011 12:55:09 PM PDT by WeatherGuy
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To: SmithL

The Macroeconomic Effects of Tax Changes
By Christina D. Romer and David H. Romer
http://emlab.berkeley.edu/users/dromer/papers/RomerandRomerAERJune2010.pdf

“tax increase of 1% of GDP lowers real GDP by almost 3%”


7 posted on 08/08/2011 12:55:11 PM PDT by Son House (The Economic Boom Heard Around The World => TEA Party 2012)
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To: SmithL

How about the ones that pay nothing in, but get a huge (up to $5000) check back from the earned income tax credit? I use to do tax returns during tax season, but got so disgusted I had to quit, with these “poor” people who would come in and get a check back for $5000 when they paid little to nothing in during the year. It’s welfare and wealth redistribution disguised as a tax credit pure and simple. This should be the first thing that is eliminated before any tax increases. Nobody should get back more than they paid in. Period.


8 posted on 08/08/2011 12:56:28 PM PDT by apillar
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To: SmithL

The REAL “other half of the story” would be answering the question, “How many of that 46% who pay no Federal Income Tax RECEIVE money from the taxpayers in the form of welfare, section 8, foodstamps, etc., and refundable tax credits that create tax “refunds” in excess of what was withheld from them (negative income tax).

There is no “nuance” to the story. While some of these people paying no Federal Income Tax may actually still be overtaxed by sales tax, property tax and state and local income taxes, the fact remains they are paying nothing towards the expenses of the Federal Government. If we need “revenue enhancements” we ought to make everyone (or at least a lot more than 54% pay at least something, before going after those who are paying most of the taxes already.


9 posted on 08/08/2011 12:59:08 PM PDT by Above My Pay Grade
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To: SmithL

If the elderly disabled vet and the family that lost their job down the street don’t pay taxes why should i cut into my yacht and caviar fund to support them.

Guffaw!


10 posted on 08/08/2011 1:00:51 PM PDT by Tempest (Ruining the day of corporate butt kissers everywhere.)
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To: apillar
How about the ones that pay nothing in, but get a huge (up to $5000) check
But, but, I'm SURE that money was spent responsibly on the kids for shoes, clothing and rent and ...
11 posted on 08/08/2011 1:00:59 PM PDT by oh8eleven (RVN '67-'68)
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To: SmithL

I guess it is a nuance that all of us pay sales tax and gasoline tax but 46% don’t pay income tax?


12 posted on 08/08/2011 1:02:04 PM PDT by pfflier
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To: SmithL

Well, rather than who pays what we can focus on the real issue - that Washington receives an incredible tsunami of tax revenue already, misspends most of it, and has the gall to demand more.


13 posted on 08/08/2011 1:02:39 PM PDT by Mr. Jeeves ( "The right to offend is far more important than any right not to be offended." - Rowan Atkinson)
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To: SmithL
"But most of those people do pay federal taxes" of some sort, such as payroll taxes, said Roberton Williams,...

A total falsehood due to the earned income tax credit. The earned income tax credit is intended to refund lower income families with the amount paid in payroll tax.

14 posted on 08/08/2011 1:05:18 PM PDT by CMAC51
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Mash His Cute Little Nose

We're Looking For a Little Yellow

Donate, monthly if possible

15 posted on 08/08/2011 1:05:28 PM PDT by TheOldLady (FReepmail me to get ON or OFF the ZOT LIGHTNING ping list.)
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To: SmithL

IF YOU DO NOT PAY INCOME TAXES... YOU ARE A PARASITE SUCKING THE LIFE OUT OF THOSE THAT DO... ALONG WITH THE LIFE BLOOD OF THE US ECONOMY... If obama WANTS FAIRNESS... WE ALL MUST SUFFER TOGETHER... THEREFORE EVERYONE THAT HAS ANY INCOME... EVEN A WELFARE CHECK... unEARNED INCOME TAX CREDIT... OR FOOD STAMPS (EBT card) SHOULD PAY THEIR FAIR SHARE.

LLS


16 posted on 08/08/2011 1:07:44 PM PDT by LibLieSlayer (Certified Al Palin Hobbit Terrorist)
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To: WeatherGuy

You are absolutely correct.


17 posted on 08/08/2011 1:09:21 PM PDT by True Grit
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To: SmithL

Not to mention 20% of the people in America AREN’T FREAKIN AMERICANS!!!!!!!!!!!!


18 posted on 08/08/2011 1:11:05 PM PDT by The Toll
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To: SmithL

Note that in a few weeks the same shit for brains author will compare tax rates in 2010 with the “1950’s” like our idiot President - and will OMIT listing “payroll taxes” as taxes in that discussion.

These guys are a waste of time. We all know it.


19 posted on 08/08/2011 1:12:06 PM PDT by Eldon Tyrell
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To: LibLieSlayer

I whole heartedly agree. If you collect social security or unemployment you have to pay income tax on it, why not welfare?


20 posted on 08/08/2011 1:19:31 PM PDT by anoldafvet (18 months until we're rid of "The Boy Blunder".)
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To: WeatherGuy
My cousin and her husband made so little, that after standard exemptions and other itemized deductions they paid VIRTUALLY no fed income tax. After the EITC, they netted about $5k.

Which is more than they paid into FICA.

21 posted on 08/08/2011 1:22:21 PM PDT by mountn man (The pleasure you get from life, is equal to the attitude you put into it.)
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To: NOVACPA

“Nuanced” is what elitists say to try to intimidate you into thinking you don’t understand as much as they, the elite, understand about an issue.


22 posted on 08/08/2011 1:25:11 PM PDT by MrB (The difference between a Humanist and a Satanist - the latter knows whom he's working for)
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To: SmithL

If 46% don’t pay any federal taxes then they sure as hell can forget using any federally funded conveniences such as freeways, damn it!


23 posted on 08/08/2011 1:25:30 PM PDT by AngelesCrestHighway
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To: SmithL

I still call BS. Yes, those 46% do pay some payroll taxes and they obviously pay taxes that are rolled into products they buy.

However, EVERYONE who works pays those taxes. So, the difference is we are debating INCOME taxes. I wish the left would get that.

And if you want to compare apples to apples, who pays the largest percentage of property taxes? These support local schools, fire departments, and the infrastructure in your town.

The argument is at 46% (or so) do not pay Income taxes.

Also, I am tired of the folks who write “loopholes” as codeword for “cheat.”

I am a small business person. I own a photography business. I can assure you when I spend nearly $8,000 on a lens or camera body I take the full deduction for the accelerated depreciation on it. This allows me to get a refund on taxes that I pay into the system during the year.

It is a standard deduction. It has been around for a while. The equipment I am deducting is strictly for business use, and there has never been nor would there be a question about the appropriateness of the deduction.

But these people would suggest that I am “cheating” because I take a deduction.

People who do not understand the tax system, yet suggest that those who take the time to learn it are cheats, are simply idiots.


24 posted on 08/08/2011 1:25:34 PM PDT by Vermont Lt ("Will No One Rid US of This Meddlesome Priest?")
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To: oh8eleven

But, but, I’m SURE that money was spent responsibly on the kids for shoes, clothing and rent and ...


hair extensions, manicures, big screen TVs, cell phones, rims.


25 posted on 08/08/2011 1:26:25 PM PDT by MrB (The difference between a Humanist and a Satanist - the latter knows whom he's working for)
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To: SmithL
76 million American households who don't pay federal income taxes

These households average 3 or more people, so the total people in America that pay no federal taxes is far above the 50% mark.

26 posted on 08/08/2011 1:29:39 PM PDT by Reeses (It's a safety net, not a hammock!)
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To: The Toll

You really think there are 65 million illegals?


27 posted on 08/08/2011 1:35:28 PM PDT by douginthearmy
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To: douginthearmy
Well....I personally think it's maybe double what "they" tell us....

More in the range of 25-30 million....

fwiw-

28 posted on 08/08/2011 1:38:15 PM PDT by Osage Orange (HE HATE ME)
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To: SmithL
"But most of those people do pay federal taxes" of some sort, such as payroll taxes, said Roberton Williams, a senior fellow at the Tax Policy Center, a center-left Washington think tank, and co-author of a widely cited report last month on who pays taxes.

An argument I had with an Illinois government worker-drone, lefty acquaintance of mine had me floored when I finally came to the realization that people like this can, without blinking, probably find a way to tell you that water is dry, the sky is green and the answer to two plus two is whatever you want it to be.

This particular acquaintance tried to convince me that even though Texas, among other states, does not have a state income tax, they do in fact have a state income tax, just that it's just called something else.

You simply cannot argue with this kind of liar. They will say anything, no matter how plainly untrue it is, without hesitation, and without any shame.

29 posted on 08/08/2011 1:38:58 PM PDT by SaveTheChief
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To: SmithL

Let’s try a novel approach- “anyone who wishes to vote must have paid local, state and federal incomes taxes as evidenced by a tax return/receipt”.

No more of the children voting themselves the cookie jar while contributing nothing to it. What juvenile approach we use in the most important function of a citizen-only those who are vested by virtue of paying into the system should have any say about where said funds go.

Poll Tax? No. Qualification, yes.

The consitution says we have a right to vote if over 18 etc, I doubt there is a controversy over establishing condtions to further clarify WHO gets to vote. We do the same with the 2A, the 5th the 1st etc etc.

I am certain a reasonable system can be established-in the old days, only land owners were entitled to vote, then the push to get the masses (something sounding leftist-ish eh?) to swing the vote towards entitlement spending (I mean, social “reform”).

Gosh, its sounding, like, like a left wing conspiracy and all!


30 posted on 08/08/2011 1:46:50 PM PDT by Manly Warrior (US ARMY (Ret), "No Free Lunches for the Dogs of War" (my spelling is generally korrect!))
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To: SmithL

Let’s try a novel approach- “anyone who wishes to vote must have paid local, state and federal incomes taxes as evidenced by a tax return/receipt”.

No more of the children voting themselves the cookie jar while contributing nothing to it. What juvenile approach we use in the most important function of a citizen-only those who are vested by virtue of paying into the system should have any say about where said funds go.

Poll Tax? No. Qualification, yes.

The consitution says we have a right to vote if over 18 etc, I doubt there is a controversy over establishing condtions to further clarify WHO gets to vote. We do the same with the 2A, the 5th the 1st etc etc.

I am certain a reasonable system can be established-in the old days, only land owners were entitled to vote, then the push to get the masses (something sounding leftist-ish eh?) to swing the vote towards entitlement spending (I mean, social “reform”).

Gosh, its sounding, like, like a left wing conspiracy and all!


31 posted on 08/08/2011 1:47:03 PM PDT by Manly Warrior (US ARMY (Ret), "No Free Lunches for the Dogs of War" (my spelling is generally korrect!))
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To: LibLieSlayer

AMEN to what you wrote.!!!!!!!!


32 posted on 08/08/2011 1:47:51 PM PDT by jesseam (Been there, done that)
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To: NOVACPA

Here’s the deal. You blame the rich for not paying their taxes....so you raise their taxes to make everyone feel good that the rich will cover the bill. But the rich go back to Senator Snuffy and ask for more tax credits...so in twelve months...they pay the same taxes as they did before. The President is happy because he got to blame someone free of charge, and Senator Snuffy is happy because he got to write more tax code which he knows nothing about and got paid some re-election campaign money for doing it.

So the bottom line? You need a plain simple 9% flat tax that everyone pays and only ten pages of tax code (rather than 70k pages). Then we all know our position in life and in maintaining the government structure. And the government? It comes to realize that it can only spend that money, and stop borrowing to buy more than they can afford. End of the discussion.


33 posted on 08/08/2011 1:55:49 PM PDT by pepsionice
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To: mountn man

I know folks in the same boat. Absolutely infuriating.


34 posted on 08/08/2011 2:03:09 PM PDT by petercooper (2012 - Purge more RINO's.)
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To: pepsionice

Oh, didn’t you hear exactly what the president said?
He’s just going to “ask those who can afford it to pay more in taxes”. It’s all voluntary, I guess.


35 posted on 08/08/2011 2:04:32 PM PDT by MrB (The difference between a Humanist and a Satanist - the latter knows whom he's working for)
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To: SmithL

Just read the whole article.
They left a few things out.

Not only will 46% not pay income taxes, approx. 40 %
of those will GET tax dollars via EIC as an example. Also lost is, of the 46% that will pay no income tax, they get tax dollars via Food Stamps, Section 8 vouchers ...etc.

Lefties see it all slipping away and will spin it to cloud it up.


36 posted on 08/08/2011 2:13:32 PM PDT by stylin19a
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To: TheOldLady
Looking for a little yellow? I figured you'd be looking for a little lot of green.
37 posted on 08/08/2011 2:15:19 PM PDT by upchuck (Rerun: Think you know hardship? Wait till the dollar is no longer the world's reserve currency.)
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To: Tempest

What nonsense! The guy with the Yacht has to pay personal property taxes on the damned thing. Just look at “what your boy, J.Effing Kerry” tried to do to avoid his “fair share” on the $750k yacht that John Heinz “widow” bought for him. As for the other nostrum about “corporate Jet owners” these planes are a depreciable business asset, just like the buildings in which they house their businesses. The IRS sets up the allowable depreciation on everything so if you are unhappy about the jet write offs, call the IRS and complain! I am 71 get SSI, and have to include it as income when I do my taxes. This has nothing to do with the DA Vet or the family that lost their job, Get Real!


38 posted on 08/08/2011 2:15:19 PM PDT by vette6387 (Enough Already!)
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To: SmithL
For some California Tea Party conservatives, it has become a favorite statistic: Nearly half of Americans - 46 percent - don't pay taxes. The number is used to back up their claim that if that many people don't pay taxes, why should the wealthiest individuals pay more?

Notice how the liberals always try to pervert the discussion by using the word "wealthiest".

The truth of the matter is that the truly "wealthy" do not pay very much in Federal taxes either because the Federal Government taxes "earnings" and not "wealth".

John Kerry and Teresa Heinz are enjoying a fortune estimated at between $750 million and $1.2 Billion that they married into without ever paying a single dollar of Federal tax on the principal of that fortune.

The yearly Federal taxes on those "wealthy" individuals amount to a minuscule amount of their net worth. They get taxed merely on the unearned income they earn on investments while sitting on their yacht. Kerry, however, does get taxed on his Senate salary and paid less income tax than I did on the year he ran for President.

It is the two-income, hard-working middle class couple that pays an obscene percentage of their income in Federal tax. The hard working couple that pays $100,000 in Federal taxes each year and has managed to accumulate $1 million in net worth pays 10% of their net worth in Federal taxes year after year after year.

By such a standard, Teresa Heinz should be paying between $75 million and $120 million in Federal taxes every year.

The truth of the matter is that the laid back types pay ZERO Federal tax on their earning and the truly wealthy pay ZERO Federal tax on their wealth.

That leaves the hard-working, middle class workaholics to pay through the nose.

39 posted on 08/08/2011 2:18:41 PM PDT by Polybius
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To: anoldafvet

Amen!

LLS


40 posted on 08/08/2011 2:21:49 PM PDT by LibLieSlayer (Certified Al Palin Hobbit Terrorist)
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To: SmithL

The real nuance is this: EITC. “The EITC is the largest poverty reduction program in the United States. Almost 21 million American families received more than $36 billion in payments through the EITC in 2004.”

My son paid no taxes, but got thousands “back”! Since I had coughed up an even greater amount in taxes owed, I pointed out I basically had given him thousands of dollars...so Happy Birthday!


41 posted on 08/08/2011 2:22:25 PM PDT by Mr Rogers
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To: upchuck

Well we need a bit more green before we see yellow, and then a bunch of yellow to get through before we go green. Get it?

Me neither.


42 posted on 08/08/2011 2:33:33 PM PDT by TheOldLady (FReepmail me to get ON or OFF the ZOT LIGHTNING ping list.)
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To: SmithL

Government employees eat big, fat revenues, and defecate little, bitty ones.


43 posted on 08/08/2011 2:38:02 PM PDT by familyop (We Baby Boomers are croaking in a noisy avalanche of rotten politics smelled around the planet.)
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To: SmithL

Let’s provide a job and increase the minimum wage to where everyone pays income taxes. I’m sure the unemployed would be happy to pay taxes.


44 posted on 08/08/2011 2:44:36 PM PDT by ex-snook ("Above all things, truth beareth away the victory")
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To: jesseam

Thank you FRiend!

LLS


45 posted on 08/08/2011 2:53:28 PM PDT by LibLieSlayer (Certified Al Palin Hobbit Terrorist)
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To: All

Only land owners should be allowed to vote.


46 posted on 08/08/2011 3:04:30 PM PDT by troy McClure
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To: mountn man
"After the EITC, they netted about $5k."

"Which is more than they paid into FICA."

The people who track these statistics should take the refundable tax credits into account and figure out what percentage of people actually pay no total taxes.

47 posted on 08/08/2011 3:56:57 PM PDT by magellan
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To: MrB
hair extensions, manicures, big screen TVs, cell phones, rims.
Theys getz cell phones fo' free - and getz 10 finger discounts for TVs.
48 posted on 08/08/2011 4:25:12 PM PDT by oh8eleven (RVN '67-'68)
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To: apillar

>>> I use to do tax returns during tax season, but got so disgusted I had to quit, with these “poor” people who would come in and get a check back for $5000 when they paid little to nothing in during the year. It’s welfare and wealth redistribution disguised as a tax credit pure and simple.<<<

Remember George McGovern’s negative income tax proposal from 1972? Here it is.


49 posted on 08/08/2011 4:28:48 PM PDT by redpoll
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To: Tempest

Careful, your wealth envy is showing.


50 posted on 08/08/2011 4:34:42 PM PDT by tnlibertarian (Don't mend SS, end it.)
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