American Millionaires: 1,400 Paid No U.S. Income Taxes In 2009

[pbrauer]

We hear so much about the 47% who pay no Federal income taxes, but more than 1400 of them are millionaires.

New tax data from the Internal Revenue service shows that in 2009, incomes fell, unemployment claims rose, and the U.S. economy shed nearly two million taxpayers.

And of the 235,413 taxpayers who earned $1 million or more in 2009, 1,470 of them paid no taxes.

According to the data, the average income for American taxpayers fell to $54,283 -- a drop of $3,516, or about 6.1 percent, between 2008 and 2009. Not only that, but the overall number of taxpayers -- that is, individuals or married couples filing with the IRS -- fell by almost two million.

"What you're seeing is the devastation of the massive loss of jobs and the effects of the real recession on real Americans," said Ed Kleinbard, a law professor at the University of Southern California.

American Millionaires: 1,400 Paid No U.S. Income Taxes In 2009

 

[Mach]

What a joke, the huffington post.

Nearly half of US households escape fed income tax - Yahoo! Finance

47% of all tax filers paid no federal income tax. This is up 10% from the prior year (!)

So around 70 MILLION people are paying no federal income taxes.
And you want to focus on 1,400 that likely either overpaid or wrote off losses?

So you want to focus on 0.002%? HAHAHAH. Wise up, please.

 

[1Perry]

It's not a joke but it's incomplete. It doesn't state a single reason why they paid no taxes. I'm curious.

 

[spud_meister]

It's not a joke but it's incomplete. It doesn't state a single reason why they paid no taxes. I'm curious.

They're probably retirees who've built themselves a nice nest egg or something.

 

[haymarket]

What a joke, the huffington post.

Nearly half of US households escape fed income tax - Yahoo! Finance

47% of all tax filers paid no federal income tax. This is up 10% from the prior year (!)

So around 70 MILLION people are paying no federal income taxes.
And you want to focus on 1,400 that likely either overpaid or wrote off losses?

So you want to focus on 0.002%? HAHAHAH. Wise up, please.

And why does this situation exist Mach?

Go back and see who the president of the USA was that proposed the mechanism that created the monster you and others on the right like to attack at every opportunity.

Does the name of George Bush II mean anything to you?

Do the Bush tax cuts of 2001 and 2003 mean anything to you?

Do you realize that 91% of the YES votes in Congress to pass those two tax cuts which created the 47% who do not pay federal income taxes came from REPUBLICANS?

While you decide to attack the 47% at every possible convenient opportunity, it would be fair and just for you to extend some of your ire and contempt for the REPUBLICANS who created that mechanism.

 

[1Perry]

They're probably retirees who've built themselves a nice nest egg or something.

I initially thought this but in reading this again it says those who "earned" 1 million. Not simply had 1 million. That's the reason for my question.

 

[Objective Voice]

I initially thought this but in reading this again it says those who "earned" 1 million. Not simply had 1 million. That's the reason for my question.

So 1,400 wage earners who earned atleast $1 million dollars in tax year 2009 paid no federal income taxes, yet people complain so much about those wage earners who earned less than $50,000 for the same tax year paid nothing in federal income taxes. I can understand a poor man or a middle-class wage earner not paying taxes because a larger portion of his net earners would go toward paying them, but not a millionaire! Even if he paid 10% in federal taxes, that would still leave him with $90K in earnings to work with. That same 10% for a wage earner making $50K is approximately $5,000. That's money the average household just can't afford to shell out right now, whereas that millionaire wage earner could easily make a few shifts in his spending habits or invest in other areas to make up the difference.

More to the point, with working-class Americas having to pay more in commodities and other services we use everyday because prices continue to increase AND more Americans are finding it increasingly difficult to find work, it just makes since that the wealthiest among us should contribute more to make up for these loses in tax revenue. To continue to champion for them not to pay more in taxes while our government continues to struggle to pay for those things it absolutely needs to keep functioning, IMO, is irresponsible.

To put it another way: When our troops on the front line of combat operations abroad start asking their Unit and Force Commanders if they'll get paid because Congress can't get their act together, that tells me we have a revenue problem, not just a spending problem!

 

[1Perry]

So 1,400 wage earners who earned atleast $1 million dollars in tax year 2009 paid no federal income taxes, yet people complain so much about those wage earners who earned less than $50,000 for the same tax year paid nothing in federal income taxes.

I have no idea where you are going here. I certainly never said it was O.K. nor did I see anyone else. I want to know why they are not paying taxes.

 

[tessaesque]

So...47% of the US is roughly 145,700,000 people. So 1400 millionaires don't pay income tax, which equates to 0.00096% of the total.

I mean, they should be paying, don't get me wrong...but .00096% isn't exactly an indication of massive system abuse.

 

[Ockham]

So...47% of the US is roughly 145,700,000 people. So 1400 millionaires don't pay income tax, which equates to 0.00096% of the total.

I mean, they should be paying, don't get me wrong...but .00096% isn't exactly an indication of massive system abuse.

The more I talk to the class warfare people the more I realize it's not about the money. It's not about taxes at all... it's about social justice and what's "fair" and whatever that means to the ideological folks who espouse that. I think all political groups can agree the amount NOT be paid by such a vast minority will not make a blip on any economic radar.

 

[Aunt Spiker]

well - remove the loopholes that are in place for people to reduce their tax liability.

That should be really simple - they audit people left and right, they should be able to find them easily.

 

[Ockham]

well - remove the loopholes that are in place for people to reduce their tax liability.

That should be really simple - they audit people left and right, they should be able to find them easily.

I agree with removing loop holes however that's taking power away from Congress. Congress uses the tax code like a check book. The more loopholes they put in the tax code the more they can curry favor with voters. Removing loopholes would then hamstring some of them. It's the same reason why a flat tax is always talked about but never seriously taken up. It would wipe out politicians ability and power base. They'd then have to function within the means of revenue's coming in OR borrow a LOT more money for pet projects within their districts.

 

[Aunt Spiker]

I agree with removing loop holes however that's taking power away from Congress. Congress uses the tax code like a check book. The more loopholes they put in the tax code the more they can curry favor with voters. Removing loopholes would then hamstring some of them. It's the same reason why a flat tax is always talked about but never seriously taken up. It would wipe out politicians ability and power base. They'd then have to function within the means of revenue's coming in OR borrow a LOT more money for pet projects within their districts.

Right - I'm so totally swanked to vote for someone because of my tax-return.

 

[PeteEU]

What a joke, the huffington post.

Nearly half of US households escape fed income tax - Yahoo! Finance

47% of all tax filers paid no federal income tax. This is up 10% from the prior year (!)

Yes and why exactly is that.... because they are not earning enough to be able to pay freaking income tax. Seriously this discussion.. or debate from the US right always forgets to mention WHY there are so many that dont pay taxes.

Looking at the income distribution... 70+% of Americans earn LESS than the median income... and if we use the OECD standard for poverty (60% of the median income of a country) then a whopping 55% of American's live in or are close to poverty. (Note by population I mean between 15 and 65 years of age).

So there is a reason so many American's dont pay taxes.. because their income is below the many deductibles there are out there........

so let me ask you this... is 30 k a year middle class?

 

[1Perry]

well - remove the loopholes that are in place for people to reduce their tax liability.

Do you have anything to show that these are because of "loopholes"?

 

[Aunt Spiker]

Do you have anything to show that these are because of "loopholes"?

Do you have anything ot show it's not?

 

[1Perry]

I agree with removing loop holes however that's taking power away from Congress. Congress uses the tax code like a check book. The more loopholes they put in the tax code the more they can curry favor with voters. Removing loopholes would then hamstring some of them. It's the same reason why a flat tax is always talked about but never seriously taken up. It would wipe out politicians ability and power base. They'd then have to function within the means of revenue's coming in OR borrow a LOT more money for pet projects within their districts.

Saying that "we are going to give these people a tax break here" isn't a loophole. It's tax policy.

 

[1Perry]

Do you have anything ot show it's not?

No, that is why I asked in my very first post. I'm not the one making accusations.

 

[Aunt Spiker]

No, that is why I asked in my very first post. I'm not the one making accusations.

If it's not a loophole - and instead a provided for tax-break. Then those should be taken away. RE the government: rich people need to pay more - they enver pay enough. Well, then the government's the one responsible for that, aren't they?

But I prefer we don't pay income tax at all.

 

[Ockham]

Saying that "we are going to give these people a tax break here" isn't a loophole. It's tax policy.

Depends on how you look at it and what type of tax break we're talking about.

 

[Mach]

Does the name of George Bush II mean anything to you?

Yes, it reminds me of a disturbing time in our recent history. What does it mean to you? Just jawing are we?

While you decide to attack the 47% at every possible convenient opportunity, it would be fair and just for you to extend some of your ire and contempt for the REPUBLICANS who created that mechanism.

Incorrect, it was a specific response to the OP which is attacking 0.6% of millionaries, and 0.002% of taxpayers. Why would it do that? Because it was trying to take irrelevant and sloppy statistics, and make a liberal piece of propoganda.


A. I's absurd (a joke) liberal propoganda. Anyone can see how dumb it is based on the above.
B. It doesn't say why they pay no taxes, i.e. it's most likely they paid in too much or had losses, or routine deductions that everyone has. Not only is it irrelevant, it's sloppy because it doesn't explain what the irreleant tiny percentage actually did!
C. That while it's true 0.002% of millionaires didn't pay fed. income taxes, isn't it a lot more reasonable to be looking at the other 46% if the problem is taxes being a free-ride for some.

Bush was a blight on the U.S. IMO. Two terms squandered with war and enciting liberals and moderate to a frothing fury. Bravado, arrogance, and incompetence ruled the day. That's why the tea party is a welcome influence in the Republican party, the #1 thing Bush did wrong was the wars and the spending coupled with them. And the Tea Party holds the opposite position on both the war and spending. Clearly you must believe then that the tea party is a positive influence for the Republican party?

 

[Objective Voice]

No, that is why I asked in my very first post. I'm not the one making accusations.

But you certainly aren't going out of your way to denounce the action of said millionaire wage earners. Yet, I'm willing to bet that if this were another article on poor people not paying any federal income taxes you'd be all over it, and it's very unlikely you'd have asked the question of why they didn't pay them as you're now doing for these millionaires.

It's very obvious why they didn't pay their federal taxes: Because they hid their money in tax shelters (Re: tax loopholes).

 

[Mach]

But you certainly aren't going out of your way to denounce the action of said millionaire wage earners.

That is because their actions were not evidenced to us as anything other than routine, normal, ethical, and legal. Notice the huffington post drops an irrelevant claim, and then doesn't back it up. People on DP do more evidence-backing than the article, or the OP.

You really think it's odd that out of 250K people, that 1400 may have had sufficient deductions, loses, or paid in already last year, etc., that they might end up technically not owing (but routinely pay federal income in other years, etc.)?

 

[1Perry]

Depends on how you look at it and what type of tax break we're talking about.

Tax breaks are never loopholes. Loopholes are things used for something other than it's intended purpose. Tax breaks are used for their intended purpose.

 

[1Perry]

But you certainly aren't going out of your way to denounce the action of said millionaire wage earners.

Tell me why they are avoiding taxes and then I can place blame. If they are not paying because politicians have carved out exemptions for them, then the blame needs put on the politicians.

I believe that everyone who has income should be invested in the country. I have no idea who to blame here though. I don't know anyone that pays taxes they do not owe.

Yet, I'm willing to bet that if this were another article on poor people not paying any federal income taxes you'd be all over it, and it's very unlikely you'd have asked the question of why they didn't pay them as you're now doing for these millionaires.

It's very obvious why they didn't pay their federal taxes: Because they hid their money in tax shelters (Re: tax loopholes).

I fully support the government closing off shore accounts and the similiar. To further my point above, I believe all should be invested in our country. Taxes for those on the lower end would be extremely low. You've never seen me complain that the poor dont pay an equal percentage as others.