Monday, October 15, 2012

o'tax'n spend - 47% is correct. "We're Broke!"

     Romney is absolutely right...approximately 47% of people in the U.S. do not pay federal income taxes.  It is a fact.  It is not meant to disparage anyone.  It simply states the obvious -  someone (taxpayers) and by some means - government benefits (earned or not) are paid by government monies.  If the government does not have enough money to pay its obligations it can only default, borrow more, raise more taxes, or print 'fiat money'.
    A fiscal disaster is looming that can not be swept under the rug with a cavalier attitude by 'he who grins like a cheshire cat' as he jaunts around the America on Air Force One campaigning on your dime.
     o'tax'n spend's answer:  a) Raise taxes on nearly everyone, b) increase the number who don't pay taxes and c) lie to the so-called 'middle income' brackets' voters in order to convince them that they won't pay increased federal taxes, d) have the Federal Reserve print more money, or e) use bookkeeping tricks to hide the problem or worse yet f) destroy the capitalist free enterprise system and replace it with a communist state.
     Chart numbers eight and nine (#8 and #9 below) clearly show that those who do pay taxes, who o'pander is trying to fool, comprise 80% of all tax payers.  o'robin hood's plan to add eight trillion dollars of taxes by 1) eliminating the Bush tax cuts and 2) raising taxes on the remaining 20%, and 3) hiding new taxes in o'scamcare which won't raise enough revenue to offset more than about 98 days of government spending.  o'keynesian would not reduce the deficit.  It is now heading toward $17 trillion dollars - nor would he lower the interest being paid against the debt.  America will continue falling into bankruptcy under o'Marxist's 'redistribute the wealth' plan.  In fact, o'massah's plantation state agenda would not affect, by even a scintilla, the 'unfunded debt' which is now approaching $122 trillion dollars!
     The estimated population of the United States is 314,584,741+ so your personal share of deficit is $51,544.38.  If you factor in the 'unfunded debt', your personal share is over $189,000 and increasing daily.  "That reality is very simple.  We're broke.  Mr. President, are you paying attention?", quote from: Michael D. Tanner,  NY Post, 29Jan12.
     The National Debt has continued to increase an average of $3.88 billion per day since September 28, 2007!
     Every day, the o'bamanomic's regime takes in $6 Billion and spends $10 Billion!
     Under any real debt reduction plan, spending must be cut dramatically, across the board including most all of the 'so-called' entitlement programs.  For he'who lies- he is not serving our country. -- rfh
Who doesn't pay taxes, in eight charts
reposted from an article written by Brad Plumer , Washington Post, on September 18, 2012
     A leaked fundraising video caused a stir Monday [17Sep12] when it showed Mitt Romney taking a rather caustic view of Obama supporters.
     In particular, Romney bemoaned the fact that nearly half the country doesn't pay federal income taxes: "These are people who pay no income tax.  Forty-seven percent of Americans pay no income tax.  So our message of low taxes doesn't connect. … [M]y job is not to worry about those people.  I'll never convince them that they should take personal responsibility and care for their lives."
     So why don't many Americans pay income taxes?  And what taxes do they pay?  Let's try to do a comprehensive breakdown in — yes — charts:
1) About 46.4 percent of U.S. households didn't pay federal income taxes in 2011.  Mitt Romney's right about that.

(Tax Policy Center)
2) That number is abnormally high right now in part due to the recession and slow recovery.  When people lose their jobs or see their paychecks drop, they tend to pay fewer income taxes as well.  (That's why the budget deficit tends to increase in a bad economy.)  Additionally, Congress has passed a slew of tax cuts as part of its stimulus efforts.  So that's skewed the number of nonpayers.  When the economy's at full employment, as it was in 2007, it's usually only about 40 percent of U.S. households that aren't paying income taxes:

(Center on Budget and Policy Priorities)
3) The vast majority of households that don't pay federal income taxes are either elderly or paying payroll taxes.  As you can see below, 60 percent of those who don't pay income tax are still working and paying taxes for Social Security and Medicare.  Their tax liability is just too low to qualify for the income tax.  Another 22 percent of non-payers are retirees.
     Only about 7.9 percent of households are not paying any federal taxes at all.  That's usually because they're either unemployed or on disability or students or are very poor.
(Tax Policy Center)
4) Many low-income workers don't pay federal income taxes thanks, in part, to a series of tax cuts endorsed by Republicans over the years.  The graph below from the Tax Policy Center shows why so many workers who do earn income don't have to pay the income tax.  They're exempt under various provisions of the tax code.
     For instance, most (though not all) elderly households are excluded from paying taxes on their Social Security benefits.  And low-income workers with children can qualify for the Earned Income Tax Credit or the Child Tax Credit.  As Keith Hennessey explains, the latter was a major GOP initiative during the 1990s and 2000s, and conservatives used to tout them as vital poverty-reduction measures:













5) The number of people who don't pay federal income taxes tends to jump every time there's a big tax cut bill, as after the 1986 tax reform or the 2001 Bush tax cuts.  There's a reason why George W. Bush was boasting, in 2004, about moving 5 million taxpayers "off the rolls."  He didn't think he was creating an army of Obama voters.  He thought it was good policy:

(Heritage)
6) About 30 percent of workers had a negative income tax in 2011, thanks to the Earned Income Tax Credit (EITC), which gives them a big refund.  But these beneficiaries tend to leave the program fairly quickly.  Many low-income workers actually receive extra money through the tax code, thanks to the EITC.  Again, this is an anti-poverty program long supported by Republicans.
     What research has shown, however, is that most EITC recipients only get the credit for two consecutive years or less.  Many of them soon move up the income ladder and start paying taxes back into the system.  One paper found that, over their lifetime, these EITC recipients pay more in taxes than they receive in benefits:

(Center on Budget and Policy Priorities)
7) Over their full lifetime, the vast majority of workers end up paying income taxes and federal taxes.  As this graph  from the Hamilton project shows, it's mainly the very young and the very old who aren't paying income taxes.  The vast majority of workers pay income taxes during their prime years, and an even higher percentage of Americans pay into Medicare and Social Security throughout their lives:









8) Federal taxes are just part of the picture. Most Americans also pay state and local taxes, such as sales taxes.  These tend to be more regressive and hit lower-income groups harder.  Here's what the system looks like when you add up all taxes:

(Citizens for Tax Justice)
#9 - Who Pays Income Taxes and How Much?
(source: http://www.ntu.org/tax-basics/who-pays-income-taxes.html)
Tax Year 2009 
Percentiles Ranked by AGI
AGI Threshold on Percentiles
Percentage of Federal Personal Income Tax Paid
Top 1%
$343,927
36.73
Top 5%
$154,643
58.66
Top 10%
$112,124
70.47
Top 25%
$66,193
87.30
Top 50%
$32,396
97.75
Bottom 50%
<$32,396
2.25
Note: AGI is Adjusted Gross Income
Source: Internal Revenue Service
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