Skip to comments.Federal Taxes lowest in last 30 years (Factcheck.org
Posted on 07/12/2012 9:15:26 AM PDT by raulgomez05
Politicians talk about the burden of taxes incessantly. Now comes a rare chance to check the facts. And the fact is that federal tax rates had fallen to the lowest in 30 years when President Barack Obama took office and fell again in his first year in office.
This news comes from the nonpartisan Congressional Budget Office, which just issued the latest update of its invaluable series on Distribution of Household Income and Federal Taxes, this time covering 2008 and 2009. The CBOs statistical series now covers the 30 years since 1979.
The average rate paid by all households for all federal taxes combined including income taxes, payroll taxes, excise taxes (on such things as gasoline, tobacco and alcoholic beverages) and individuals share of corporate income taxes hit its highest rate during the period in 2000, just before President George W. Bush began signing the tax cuts that are scheduled to expire next year (unless Congress extends them again).
(Excerpt) Read more at factcheck.org ...
“Much of the decline in 2008 and 2009 was due to the collapsing economy. The worst recession since the Great Depression of the 1930s began in December 2007. There were fewer corporate profits to tax, for one thing. And upper-level households, which pay the highest rates, also saw their incomes plunge along with the stock market and tumbling real-estate prices.”
“But some of the decline was also due to the tax cuts contained in Obamas 2009 stimulus package, including a tax credit that benefited nearly all workers. Despite Republican criticisms, and Obamas own campaign promise to raise taxes on upper-income households, the new president was a tax cutter in 2009.”
You have to remember. The Bush tax cuts, he had nothing to do with whatsoever. He claims credit while simultaneously rebuking them.
2010. The year that inheritance taxes did not exist. Really! My mother died then, not one damned tax from anyone! A fluke of the legislation. Remedied in 2011 and thereafter.
Remember the temporary cut in what liberals like to call “payroll taxes?” Actually the 2% reduction in the 6.2% contribution to Social Security each worker pays. He claims that as a tax reduction.
So I can believe that taxes were lower on the whole, but not by any substantive action by Obama except for further weaking of the outlay viability of Social Security.
You can’t pay no taxes if you ain’t making no money.
Have Federal taxes increased after 2009? Or have they stayed the same?
Well of course taxes paid are going to go down if taxable income goes down.
And 0bama has done a great job of eliminating taxable income. Welfare isn’t taxable, so all his dependent minions are paying a lot less in taxes. Everyone’s effective tax rate has gone down because everyone’s income has gone down.
You can never trust liberals to tell you the truth.
Taxes are a complicated thing and what your effective tax rate is has a lot of do with if you are sole proprietor business owner or work for a corporation, do you own a house or rent, how many kids you have, what type of deductions you have, what kind of investments and right-offs and investments you have.
Liberals don’t like to get into the nuances of the tax code and like to paint a broad brush because it serves their propaganda.
While off hand I do not recall any RATE reduction since we elected a communist government the AVERAGE RATE should be down!
How can that be? Simple, if you lower the income of those few who are working more will fall into a lower tax bracket hence there will be a lower AVERAGE RATE paid along with falling revenues.
No mirrors required but the wording was deliberate to help Obama retain his regimes power.
A "nonpartisan" outfit created by a bunch of partisan politicians? What's wrong with this picture?
“Even those affluent households paid an average total federal tax rate of just 28.9 percent in 2009.”
Ignoring how this article is merely a masturbatory exercise in statistics-juggling, the odd use of the words “even” and “just” belie the “non-partisan” nature of Factcheck.
Taxes can stay where they are but what we really need right now is pending cuts.
The federal budget of $3.796 trillion needs to be cut by at least $800 billion and maybe even further.
Doesn’t take into account state and local tax burdens. Also doesn’t measure the effect of dollar debasement via Fed actions over the last 4 years. Some estimate an effective 22% tax on the American public from the declining purchasing power of said dollar.
Not to worry: we have SNAP, EBT, Obamaphones,Section 8, etc to make up your lost income.
I have a photo I took years ago in a Soviet garment factory of a big banner reading (in Russian) "THE PLAN IS LAW!". And we all know how that economic model turned out. Some things and some kinds of people simply never change.
that’s why inflation is the “hidden tax” politicians love most.
they can hide behind the nebulus “decline of the dollar”.
Right on target!
Good question. I checked both the CBO site and the IRS site and neither seem to have posted data beyond 2009.
I can’t think of any significant tax rate changes, but obviously changes in income are going to change the average rate paid.
Fewer taxpayers = less taxes.
This does not pass the smell test. I sense a boatload of spin required to make this a “factual” statement.
Of course. Politicians will promise and run on cutting taxes. We haven’t had a politician cut debt, spending or the Gov’t in general in years. Its always the ‘fringe’ who bring up cutting spending instead of going with the flow and just taxes.
I keep my pay check stubs for a year. During Obama’s first year I received no pay raise YET the FedWith line item increased.
We will be forced to come up with the money somehow and longer this "tax break" is in effect, the sooner we must pay the piper.
Oh well, we are a nation of greedy ignoramuses and will suffer the consequences.
Why not. The same FACT Check article points out the the top 1% is effective tax rate has increased under Obama.
The middle 20% has declined under Obama, which makes sense since over 50% of households do not pay federal tax.
If you read this article carefully, it support the conservative position: we are taxing wealth creators and creating a dependent class.
My aged mother's friend seems to be the only right thinking Annenberg left.
One treasury secretary, William Simon of blessed memory, had the guts to say that inflation was another tax.
Of course this is true: only not for the reason you are thinking. Millions of people are unemployed under Obamugabe...making no income will by default create a lower average salary and thus a lower percentage of households paying tax.
This just means the American standard of living is going to hell.
If I go from working & making $80,000 a year & paying appropriate tax rates on that money to being laid off & on unemployment which brings me about $20,000 a year, then I am paying a much lower rate if tax & a much lower total amount of income tax.
When people are not working, they are not paying taxes!!!
They also are not driving as much & paying gas taxes!
Average rates paid decline as income drops to lower brackets. Unemployment increases raise the number of people not paying income tax and thus the average tax paid.
I have only two words for this one
When income goes down, the average income tax rate paid goes down.
When high paid people take lower paid jobs just to survive, the average rate of income taxes paid goes down.
When higher paid people get axed, and survive on unemployment, the average rate of income taxes paid goes down.
However...using this as a justification for raising income tax rates is equivalent to putting more straws onto a camel’s back when it is already buckling from the weight it is carrying.
I don't think a small business owner hovering between the $250-500K range are gonna hitch up their bootstraps and work another 20 hours a week more to keep up their lifestyle (which probably isn't good because they're hoping to reinvest, pay employees and expand)....All this dream stuff of "really getting somewhere" now DOES NOT EXIST any more.
They aren't going to work harder! They'll work smarter! They'll fire the excess employees that takes them into Obamacare or that 'bad' income level of $250K or more. They will work less, enjoy the time off with their family, AND they will take less in income and live longer.
We are about to see a decrease in productivity the likes of which this nation has never known. I KNOW, I've been there - I am there. I semi-retired and work "just enough" - and I enjoy myself now.
I have a friend that has no other interest in life than making money - it is what brings him joy and he is very good at it. Most of his friends are those involved in his pursuit of money. He will probably keep doing it even under oppressive taxation.
The EITC program, free money give away for just filing a 1040, is called a tax break. Words are losing their meaning.
Tax rate or taxes? Taxes have risen a lot because of inflation. My tax of $2.00 back in 2000 is now $2.40 because of oBumblers horse shiite.
While it is called a “tax break,” as you say, they (Government) has the audacity and the effrontery to call it EARNED INCOME Tax Credit - as if these leeches “earned” anything.