Posted on 10/06/2017 8:55:46 AM PDT by SeekAndFind
A popular Facebook and Twitter game asks friends to post an unpopular opinion. Here is an unpopular fact: Tax reformers cannot deeply cut income taxes for lower-income families, because they already pay no collective income tax.
Tax reform is intended to bring simplification and economic growth. Yet many commentators seem interested in only redistribution.
This explains the teeth-gnashing over the Tax Policy Center estimate that the Republican tax blueprint would save the median family $420, but a family in the top income quintile $10,610.
While that sounds unfair, consider this: The top-earning 20 percent of households currently pay 88 percent of all federal income taxes. So even a proportional income-tax cut will save them the most money.
In 2013 (the latest data year available), the top 20 percent of households paid $1.2 trillion in income taxes. The next 20 percent paid just $175 billion. The bottom 60 percent collectively paid $0. Actually, the IRS paid them $17 billion, thanks to refundable tax credits.
Put another way: Household income-tax bills averaged $47,000 for the top income quintile, $7,000 for the next quintile and negative $200 for the bottom 60 percent.
How are tax reformers supposed to target most income tax savings to those with no income tax burden?
Obviously, some wealthy families escape taxes and some poorer families face painful tax burdens — which should be addressed. However, the aggregate tax savings will align with the aggregate tax burden.
By the way: In anticipation of knee-jerk dismissals of “right-wing lies and propaganda,” all this data is publicly available from the non-partisan Congressional Budget Office (the same group cited as gospel in the recent health coverage debates). The Obama Treasury produced similar data, which no serious economist has challenged. It cannot be wished away simply because it conflicts with populist narratives.
(Excerpt) Read more at nypost.com ...
The problem is that the economy is not improving because the middle class has been decimated. Interest on savings would allow savings to compound, provide an incentive to save, and would provide income which Seniors would spend, a lot of it in the local economy. EVerify and tariffs against unfair competition would do more to help US citizens than any scheme that helps the rich. Us little folk are past fed up with CEOs and other members of the ruling class receiving multi-million dollar wages and benefits while the rest of us have trouble getting enough income to break even.
What is wrong with that? It is only part of the reform. Even an ameoba knows you should start the conversation by saying.. poor people will get more tax deduction. More people will qualify for paying significantly less or be getting Paid.
The middle class.. well the devil is in the details.
If it’s normal tax reform the poor pay less or Get Paid. The middle class will have a larger percentage of their income tax, wealthy people may have to give up an extra cup of Starbucks each month.
RE: If it’s normal tax reform the poor pay less or Get Paid
I object to “Get Paid”. If you don’t pay anything and simply receive money, what’s your stake in the country other than to take from it?
Simple math and simple fairness.
If you or you family don’t pay income taxes nor contribute beyond a bare minimum, you should not get refunds nor a lower tax rate.
Not quite true. There’s a reason the data is being obfuscated in this article.
A look at percentage of earnings paints a different picture...
And why the bottom 60%? lumping (some) middle-class wage earners in with the leaches who live off government welfare and EIC, sort of skews the picture as well.
If you get money without putting in anything you are getting paid.
Not in the traditional sense of you provided a service or goods of value, earnings. Getting paid is a euphemism for receiving money well outside the traditional exchange of goods n services of value.
I guess it’s more like you sat your lazy arse at home and watched tv for 20 years, paying nothing into the tax system despite being able to work and you get thousands in tax returns.
Grrrrrr! Blood boiling-- the 60% that use the most government services.
“The problem is that the economy is not improving because the middle class has been decimated.”
That’s the long and short of it. Without the middle class, there will only be the rich and those who serve them.
Which is why 0care repeal needed to happen first. The premiums and sky high deductibles are killing us.
Since that never happened, any ‘tax reform’ would have to throw the middle class a pretty big bone to even offset the corrosive effects of 0care.
Normalizing interest rates should have been done years ago and now it’s probably too late to do without igniting shock waves throughout the economy.
At this point, I’m not 100% in favor of lowering taxes. Any savings the middle class might get will be sucked up by out of control health insurance and medical expenses. As you state, the first piece of the puzzle had to be to repeal Obamacare.
How can we reduce your taxes if you do not pay ANY taxes already ?
How can we reduce your taxes if you do not pay ANY taxes already ?
The problem? That’s easy — envy and jealousy.
Senator Mike Rounds (R-SD) said he’s against repealing the death tax. What an SOB!!!!
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