45% of households own no federal taxes for 2010

[DontDoIt]

45% of households owe no federal income tax for 2010 - Yahoo! Finance

For tax year 2010, roughly 45% of households, or about 69 million, will end up owing nothing in federal income tax, according to estimates by the nonpartisan Tax Policy Center. Some in that group will even end up getting paid money from the federal government.

Well what are you thoughts on this? If I am correct this is actually down 2-3% from last year but still quite high. Will this lead to more taxes for the upper bracket? Im assuming so.

 

[Boo Radley]

Re: 45% of households own no federal taxes in 2011

45% of households owe no federal income tax for 2010 - Yahoo! Finance



Well what are you thoughts on this? If I am correct this is actually down 2-3% from last year but still quite high. Will this lead to more taxes for the upper bracket? Im assuming so.

Those poor folks in the upper brackets. I mean GE paid such a high amount. What was that? minus how much?

Also, it helps to read the article you link:

The fastest way to make the tax-averse incensed is to tell them that nearly half of U.S. households end up owing no federal income tax when all is said and done.

But like most statistics, it is often misunderstood -- and, in the case of those trying to stir political outrage, misrepresented.

(snip)

That does not mean such households end up paying no taxes whatsoever. For instance, those in the group still pay other taxes such as state and local income taxes, as well as property and sales taxes.

And the group doesn't necessarily get off scot-free when it comes to payroll taxes -- which support Social Security and Medicare.

 

[iamitter]

Re: 45% of households own no federal taxes in 2011

Those poor folks in the upper brackets. I mean GE paid such a high amount. What was that? minus how much?

Also, it helps to read the article you link:

The fastest way to make the tax-averse incensed is to tell them that nearly half of U.S. households end up owing no federal income tax when all is said and done.

But like most statistics, it is often misunderstood -- and, in the case of those trying to stir political outrage, misrepresented.

(snip)

That does not mean such households end up paying no taxes whatsoever. For instance, those in the group still pay other taxes such as state and local income taxes, as well as property and sales taxes.

And the group doesn't necessarily get off scot-free when it comes to payroll taxes -- which support Social Security and Medicare.

Well, they don't end up paying for anything the federal government does bar SS and Medicare. 45% is still a problem.

 

[imagep]

Re: 45% of households own no federal taxes in 2011

45% of households owe no federal income tax for 2010 - Yahoo! Finance



Well what are you thoughts on this? If I am correct this is actually down 2-3% from last year but still quite high. Will this lead to more taxes for the upper bracket? Im assuming so.

I would assume so also, except for the fact that the wealthiest Americans are now paying the lowest effective tax rate since the 1920's (reported by other posters at just 17%).

 

[imagep]

Re: 45% of households own no federal taxes in 2011

The fastest way to make the tax-averse incensed is to tell them that nearly half of U.S. households end up owing no federal income tax when all is said and done.

Thats a very ironic point!

 

[Boo Radley]

Re: 45% of households own no federal taxes in 2011

Well, they don't end up paying for anything the federal government does bar SS and Medicare. 45% is still a problem.

There's more than few problems. I just feel some have been starting at burdening the bottom while fighting to free the top. Seems backward to me. teachers are evil because they make some $70,000 a year and figth for benefits, but folks making $250,000 or better are struglging and can't afford a small increase in taxes? It is the same song different verse.

 

[pbrauer]

Re: 45% of households own no federal taxes in 2011

From the article at the OP:

...Contrary to what many assume, membership in the group isn't restricted to the poor.

It's true that the vast majority of the 69 million households make less than $50,000 -- with very heavy representation among households making less than $30,000.

But nearly 5 million households in the group make somewhere between $50,000 and more than $1 million. The vast majority of that group -- 4.3 million -- make between $50,000 and $100,000. Another 485,000 make between $100,000 and $500,000. And the remaining 18,000 make $500,000 or more...

 

[Whovian]

Re: 45% of households own no federal taxes in 2011

From the article at the OP:

Contrary to what many assume, membership in the group isn't restricted to the poor.

It's true that the vast majority of the 69 million households make less than $50,000 -- with very heavy representation among households making less than $30,000.

But nearly 5 million households in the group make somewhere between $50,000 and more than $1 million. The vast majority of that group -- 4.3 million -- make between $50,000 and $100,000. Another 485,000 make between $100,000 and $500,000. And the remaining 18,000 make $500,000 or more...

You consider someone who makes 50,000 rich?

 

[imagep]

Re: 45% of households own no federal taxes in 2011

You consider someone who makes 50,000 rich?

I don't believe he said "rich", he just said that "membership in the group isn't restricted to the poor." A $50,000 income would clearly make someone middle class.

Anyhow, I can't help but to cheer these people on, many people on the far right constantly talk about how those who don't pay income tax are not producers. I just want to know how that can be the case when many of them make between $100k and $500k - how can you make an above average income and NOT be a producer?

Those who denegrate people who don't pay federal income taxes are obviously jelous.

 

[roguenuke]

Re: 45% of households own no federal taxes in 2011

You consider someone who makes 50,000 rich?

$50K is not rich but is at least lower middle class.

 

[Whovian]

Re: 45% of households own no federal taxes in 2011

I don't believe he said "rich", he just said that "membership in the group isn't restricted to the poor." A $50,000 income would clearly make someone middle class.

Anyhow, I can't help but to cheer these people on, many people on the far right constantly talk about how those who don't pay income tax are not producers. I just want to know how that can be the case when many of them make between $100k and $500k - how can you make an above average income and NOT be a producer?

Those who denegrate people who don't pay federal income taxes are obviously jelous.

Ok.. try this one then...

Another 485,000 make between $100,000 and $500,000. And the remaining 18,000 make $500,000 or more...

Can the debt be reduced by simply adding additional taxes to this group of 503,000 people? OR to this group and the richest 2%?

 

[Amazed]

Re: 45% of households own no federal taxes in 2011

And? It's ok that you demand the rest of pay your way?

Those poor folks in the upper brackets. I mean GE paid such a high amount. What was that? minus how much?

Also, it helps to read the article you link:

The fastest way to make the tax-averse incensed is to tell them that nearly half of U.S. households end up owing no federal income tax when all is said and done.

But like most statistics, it is often misunderstood -- and, in the case of those trying to stir political outrage, misrepresented.

(snip)

That does not mean such households end up paying no taxes whatsoever. For instance, those in the group still pay other taxes such as state and local income taxes, as well as property and sales taxes.

And the group doesn't necessarily get off scot-free when it comes to payroll taxes -- which support Social Security and Medicare.

 

[pbrauer]

Re: 45% of households own no federal taxes in 2011

You consider someone who makes 50,000 rich?

NO!, What I posted was from the article linked in the OP. Pay attention.

 

[ricksfolly]

Re: 45% of households own no federal taxes in 2011

It just means that 45 percent are below the poverty level, not that they're getting special breaks.

ricksfolly

 

[American]

Re: 45% of households own no federal taxes in 2011

Those poor folks in the upper brackets. I mean GE paid such a high amount. What was that? minus how much?

Also, it helps to read the article you link:

The fastest way to make the tax-averse incensed is to tell them that nearly half of U.S. households end up owing no federal income tax when all is said and done.

But like most statistics, it is often misunderstood -- and, in the case of those trying to stir political outrage, misrepresented.

(snip)

That does not mean such households end up paying no taxes whatsoever. For instance, those in the group still pay other taxes such as state and local income taxes, as well as property and sales taxes.

And the group doesn't necessarily get off scot-free when it comes to payroll taxes -- which support Social Security and Medicare.

Can't address the topic AS USUAL we see. We're not talking about no taxes, we're talking about no federal income taxes. Try staying on topic.

 

[iamitter]

Re: 45% of households own no federal taxes in 2011

It just means that 45 percent are below the poverty level, not that they're getting special breaks.

ricksfolly

45% are NOT below the poverty level. If they were, our country would be very, very ****ty.

 

[ricksfolly]

Re: 45% of households own no federal taxes in 2011

$50K is not rich but is at least lower middle class.

The upper class is above $250,000, poverty the bottom, so the middle range would be somewhere between the two.

ricksfolly

 

[ricksfolly]

Re: 45% of households own no federal taxes in 2011

45% are NOT below the poverty level. If they were, our country would be very, very ****ty.

According to Wikipedia, the family poverty level for 2011 is set at $22,350, when you add up all the standard deductions, there is nothing left to tax.

ricksfolly

 

[iamitter]

Re: 45% of households own no federal taxes in 2011

According to Wikipedia, the family poverty level for 2011 is set at $22,350, when you add up all the standard deductions, there is nothing left to tax.

ricksfolly

Are you claiming 45% of people earn less than 22,350?

 

[apdst]

Re: 45% of households own no federal taxes in 2011

Those poor folks in the upper brackets. I mean GE paid such a high amount. What was that? minus how much?

Also, it helps to read the article you link:

The fastest way to make the tax-averse incensed is to tell them that nearly half of U.S. households end up owing no federal income tax when all is said and done.

But like most statistics, it is often misunderstood -- and, in the case of those trying to stir political outrage, misrepresented.

(snip)

That does not mean such households end up paying no taxes whatsoever. For instance, those in the group still pay other taxes such as state and local income taxes, as well as property and sales taxes.

And the group doesn't necessarily get off scot-free when it comes to payroll taxes -- which support Social Security and Medicare.

Awww, stop! GE paid her taxes. That bull**** article has already been debunked, for God's sake.

 

[TurtleDude]

Re: 45% of households own no federal taxes in 2011

45% of households owe no federal income tax for 2010 - Yahoo! Finance



Well what are you thoughts on this? If I am correct this is actually down 2-3% from last year but still quite high. Will this lead to more taxes for the upper bracket? Im assuming so.

the ultimate loophole

and many of these non tax payers are voting for politicians who tell them the rich need to pay more

 

[TurtleDude]

Re: 45% of households own no federal taxes in 2011

Those poor folks in the upper brackets. I mean GE paid such a high amount. What was that? minus how much?

Also, it helps to read the article you link:

The fastest way to make the tax-averse incensed is to tell them that nearly half of U.S. households end up owing no federal income tax when all is said and done.

But like most statistics, it is often misunderstood -- and, in the case of those trying to stir political outrage, misrepresented.

(snip)

That does not mean such households end up paying no taxes whatsoever. For instance, those in the group still pay other taxes such as state and local income taxes, as well as property and sales taxes.

And the group doesn't necessarily get off scot-free when it comes to payroll taxes -- which support Social Security and Medicare.

bottom line-those people don't pay the taxes that support all the governmental activity funded by the income tax and the death tax. the rich also pay tons of other taxes. do you believe that the people who don't pay federal income taxes don't use services funded by federal income taxes?

as I noted previously-paying your rent bill does not erase your obligation to make your car payment

 

[TurtleDude]

Re: 45% of households own no federal taxes in 2011

I would assume so also, except for the fact that the wealthiest Americans are now paying the lowest effective tax rate since the 1920's (reported by other posters at just 17%).

why do the envious refer to the wealthiest americans when those targeted for the tax hike-the top two percent are paying much more than 17%

and those billionaires that are used to come up with that figure still each pay more federal income taxes than say 60 million americans combined

does anyone claim that one billionaire uses more services paid for by the FIT than those 60 million?

 

[Objective Voice]

Re: 45% of households own no federal taxes in 2011

From article in the OP:

Contrary to what many assume, membership in the group isn't restricted to the poor.

It's true that the vast majority of the 69 million households make less than $50,000 -- with very heavy representation among households making less than $30,000.

But nearly 5 million households in the group make somewhere between $50,000 and more than $1 million. The vast majority of that group -- 4.3 million -- make between $50,000 and $100,000. Another 485,000 make between $100,000 and $500,000. And the remaining 18,000 make $500,000 or more

Very high-income households can fall into the non-payer group if they get their income from tax-exempt bonds or overseas sources for which they get foreign tax credits, according to Roberton Williams, a senior fellow at the Tax Policy Center.

Other data from the IRS show that the tax bite on the very highest income taxpayers has fallen as their incomes have risen. In 2007, the top 400 individual tax returns had an average adjusted gross income of $345 million, up from $47 million in 1992. But their average tax rate was just 17%, down from 26% in 1992.

How did we get here?

The ranks of those whose federal income tax burden nets out to zero -- or less -- have grown in recent years for two reasons.

The first is temporal.

The downturn in the economy has hurt household incomes and various stimulus bills offered Americans temporary tax breaks to mitigate the economic pain -- thereby further reducing their tax bills.
The second is more systemic.

The tax code is filled with hundreds of tax breaks to encourage economic activities the government favors, tax experts say. For instance, the law offers credits to supplement the wages of low-income workers, help families pay for college and encourage them to buy homes and have children.

Temporary tax policies, such as the Bush-era tax cuts and the tax breaks passed under President Obama, have also increased the ranks of the non-payers.

If most tax breaks were removed, the Tax Policy Center estimates, the percentage of households with no federal income tax liability would drop to 27% from 45%.

That last line says it all. That 45% of non-federal taxpayers are adhering to the tax code like everyone else. Change the code and the percentage of non-federal taxpayers will decrease.

 

[rocket88]

Re: 45% of households own no federal taxes in 2011

I'm coming around on the idea of a flat tax. IF....there are no loopholes. The tax system we've got ends up being regressive because those with the means to do so simply pay high priced lawyers to fit them through each and every loophole they can.

However, neither party is about to get rid of loopholes...