Posted on 12/10/2013 6:11:39 AM PST by Cincinatus' Wife
(CNSNews.com) - The top 40 percent of households by before-tax income actually paid 106.2 percent of the nation’s net income taxes in 2010, according to a new study by the Congressional Budget Office.
At the same time, households in the bottom 40 percent took in an average of $18,950 in what the CBO called “government transfers” in 2010.
Taxpayers in the top 40percent of households were able to pay more than 100 percent of net federal income taxes in 2010 because Americans in the bottom 40 percent actually paid negative income taxes, according to the CBO study entitled, “The Distribution of Household Income and Federal Taxes,2010.”
“When refundable tax credits, such as the earned income tax credit and the child tax credit, exceed the other federal tax liabilities of the households in an income group, those households are said to have a negative average tax rate,” said the CBO study.
“In its analysis,CBO measured individual income taxes net of refundable credits,” it said.
In 2010,the CBO determined, American households in the bottom 40 percent paid negative amounts in income-tax dollars and a negative average income-tax rate.
“Much of the progressivity of the federal tax system derives from the individual income tax,”said the report. “In 2010, the lowest quintile’s average rate for the individual income tax was -9.2 percent and the second income quintile’s rate was -2.3 percent.”
“A group can have a negative income tax rate if its refundable tax credits exceed the income tax otherwise owed,”said the CBO report.
The households in the top 20 percent by income paid 92.9 percent of net income tax revenues taken in by the federal government in 2010,said CBO. The households in the fourth quintile paid another 13.3 percent of net income tax revenues. Together,the top 40 percent of households paid 106.2 percent of the federal government’s net income tax revenue.
(Excerpt) Read more at cnsnews.com ...
Where my free helfcare at?
They gotta pay their “fair share!!”
FFS the left is loony...
Most of the left is the rich.
that is income re-distribution pure and simple
What if “payroll” and State & Local Income taxes and welfare payments are included?
““When refundable tax credits, such as the earned income tax credit and the child tax credit, exceed the other federal tax liabilities of the households in an income group, those households are said to have a negative average tax rate,” said the CBO study.”
Obama will not be happy and will want to increase the redistribution.
I am a stupid IDIOT.
“They gotta pay their “fair share!!””
Since the very top Republicans of these tax brackets are doing everything they can to promote amnesty and derail the tea party they can just pay their taxes just like the rich Dem’s. No more tax cuts or breaks for wealthy payers until the border is secure and we have a fair shake from THEIR media.
Taxes MUST BE lowered.
Spending must be curtailed.
5.56mm
I remember in the 70s leftists would talk about the “negative income tax rate” as a way to solve all of society’s problems. And now it’s here, and yet society still seems to have 1 or 2 problems
Don’t know why they can’t just say.....this group gets a federal welfare check.
A graduated income tax is as fair as a narrower goal and more opponents positioned against a “good” team facing a “poor” team.
I am amazed at how many of my associates and colleagues think that such an equation is anything other than a reason not to play- which is why more successful (wealthy) folks seek out every exemption or credit they can, so as to reduce the unfair playing field as much back to normal as they can.
Get rid of the graduated tax scheme and either make it a percent rate on all income, or eliminate it completely and make a sales tax, or better yet, eliminate the demand for revenues to pay for a bloated, over-reaching and ineffective government by systematic reductions of all but the most basic constitutional requirements, everything else left to the states or the people themselves...
It took at least three tries to pass a graduated income tax and only when a back-fired republican plan failed did it make it past the congress and supreme court.
Lenin would be proud, even as he asserted that it’s “just a start.”
Sadly a bass-ackwards idea that originated with Republicans (Nixon, Reagan)
USSR socialism was about the workers gaining power and wealth and motivating them to increase productivity. USSA socialism is about the new No'bility leisure class gaining power and wealth, and enslaving the working class that refuse to reduce their productivity. While both political movements are motivated by envy, this is not your grandfather's socialism.
Friedman...
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